Life insurance companies ended the difficult year 2020 on a positive note. The gross premiums of LICs increased in annual terms by 16% amounting to 228.9 billion tenge. As of 2020, LIC Nomad Life was leading in terms of total fees. It raised 72 billion tenge outstripping LIC Halyk life, which total premiums exceeded 66.5 billion tenge. According to the National Bank's data, , LIC Nomad Life also takes the first position among LICs in terms of assets (208.4 billion tenge) and insurance reserves (146.9 billion tenge) as of 01.01.2021. LIC Nomad Life surpasses even general insurance companies in terms of insurance reserves.
In terms of insurance segments, at the 2020 yearend, the largest volume of premiums of 97.6 billion tenge fell on life insurance. Over the twelve months of 2020, the premiums have grown by 26.9% to the same period in 2019. The share of life insurance premiums in total LIC premiums rose to 42.6% against 39% in 2019.
According to the results of 2020, LIC Halyk life was the largest life insurance insurer. Its premiums amounted to 36.6 billion tenge showing an annual growth of 2.3% against 36.1% in 2019. The share of LIC Halyk life in total life insurance premiums was 37.6% against 46.6% in 2019.
LIC Nomad Life is the second largest insurer in the life insurance segment. At the end of 2020, the company doubled the premiums collecting 35 billion tenge against 16.1 billion in 2019. The annual dynamics of premiums amounted to 117.6% and allowed increase the share in the segment from 20.9% to 35.9%.
LIC European Insurance Company (EIC) remains the third largest insurer in the life insurance segment. At the end of 2020, the LIC showed a 19.3% decline in premiums (year-on-year), it collected 17.6 billion tenge and reduced the market share in the life insurance segment to 18.1% from 28.5% in 2019.
Annuity insurance as of end of 2020 showed an increase of 8.8%, while in 2019 the segment grew by 106.6%. In absolute terms, premiums made 77.6 billion tenge. The slow growth rate lowered the share of annuity insurance premiums in total LIC premiums from 36.1% to 33.9%.
Being a part of annuity insurance the retirement annuities increased by 9.2% in 2020 to 71.3 billion tenge against the dynamics of 131.6% in 2019. LIC Nomad Life became a leader of the retirement annuity segment and annuity insurance sector by the end of 2020. It collected 26.7 billion tenge of annuity insurance premiums accounting for 34.4% of the annuity insurance premiums among LICs. The company raised 25 billion tenge on retirement annuities of the LIC making 35.1% of the segment.
LIC Halyk life is in the second place in terms of portfolios. The company collected 18.3 billion tenge of annuity insurance premiums (occupies 23.6% of this insurance segment) and 15.9 billion tenge of retirement annuities (occupies 22.3% of this segment).
There is a serious race for the third place in the annuity insurance segment in 2020. LIC Standard Life was the third in 2019. It occupied 9% of the annuity insurance segment, including 9.3% of the retirement annuity segment. According to the results of nine months of 2020, LIC Eurasia made it to the top three largest LICs in annuity insurance and stayed there until December. At 2020 yearend, LIC Freedom Finance Life was the third largest insurer in annuity insurance. Its share was 14.7% for annuity insurance (11.3 billion tenge), and 15.5% for retirement annuities (11 billion tenge). In 2019, the LIC held 5.1% and 5.3%, respectively.
At the end of 2020, the premiums in the Employer Liability Annuities class (ELA) fell by 6.3% in annual terms to 4.4 billion tenge. LIC Halyk life is still a leader of the ELA segment. The company's portfolio reaches 1.37 billion tenge and makes 30.8% of the segment (38.4% in 2019). The second place is taken by LIC Nomad Life. The company's portfolio is 1.35 billion tenge and occupies 30.3% of the ELA segment. LIC KM Life holds the third place. Its portfolio over the year has grown to 497.9 million tenge, and its market share increased to 11.2%.
The segment "Other types of annuity insurance" at the end of 2020 showed an excellent increase in premiums by 43.9% in annual terms against a fall of 18.7% in 2019. The fees of LICs exceeded 1.8 billion tenge. The activity of insurers is bearing fruit; the concentration in the segment is declining. In 2019, two LICs collected 98.9% of premiums. In 2020, the top three accounted for 96.3% of premiums. The first position is occupied by LIC Halyk life, which has collected 988 million tenge and forms 54.6% of premiums in the segment (59.4% in 2019). By the end of 2020, LIC KM Life collected 434.7 million tenge (24% of the segment's share). LIC Nomad Life attracted 322.8 million tenge of premiums and made 17.8% of the segment.
Accident insurance (AI) premiums collected by LICs continue to show good growth. In 2020, they got bigger by 27.7% against an increase of 2.4% in 2019. In monetary terms, the portfolio of LIC premiums in this segment amounted to 12.7 billion tenge.
Two LICs showed a significant growth in premiums in annual terms. The Nomad Life’s premium portfolio increased by 298.7% to 319.1 million tenge. LIC Freedom Finance Life raised its premiums by 338.7% to 3.178 billion tenge. The result will allow the company to take first place in AI premiums among LICs by the end of 2020. The share of premiums of LIC Freedom Finance increased to 24.9% against 7.2% in 2019. LIC Halyk life fell to second place. The collected premiums in the amount of KZT3.176 billion were not enough to keep leadership in the segment. At 2020 yearend, the LIC lost 42.1% of premiums, its share in the segment decreased to 24.9% against 54.8% in 2019. LIC EIC held the third position as of end of 2020. It collected 2.6 billion tenge of premiums and made 20.5% of the segment, while in 2019 the share was 35.2%. Competition intensified in the segment in 2020 leading to a decrease in premium concentration. If in 2019 the two largest LICs in the segment collected 90% of premiums, by the end of 2020, four LICs formed only 86% of premiums.
Health insurance premiums (VHI) among LICs have increased by 5559.1% over the year against a decrease of 57.9% in 2019 making 1.09 billion tenge. The segment was driven by LIC KM Life. The company collected over 1 billion tenge of premiums and its market share was 92.4% in 2020.
At the end of 2020, the premiums in the “Insurance of an employee against accidents in the performance of his job duties” (CAI) sector showed weak dynamics of 2.2% against an increase of 40.9% in 2019. The total portfolio of LICs in the segment in monetary terms amounted to 39.8 billion tenge. At 2020 yearend, LIC Nomad Life was a leader of the CAI segment. It collected 10 billion tenge of premiums and occupied 25.1% of the CAI segment. LIC Halyk life is in the second place with the portfolio of 8.3 billion tenge and holds 21% of the segment. The third position is taken by LIC KM Life. As of end of 2020, it collected 6.69 billion tenge of premiums, which made it possible to take 16.8% in the CAI segment. LIC KM Life outpaced LIC Eurasia, which portfolio amounted to 5.4 billion tenge at the end of 2020, and the market share in the segment decreased to 13.8%. Competition in the CAI segment has remained very high during the year of 2020. The share of the two largest insurers in the segment decreased to 46.1%, while in 2019 they collected 56.7% of premiums.
As of year 2020, the total LIC assets have increased by 37.7% (year-on-year) and exceeded 603.9 billion tenge. The insurance reserves amount to 421 billion tenge having grown by 28.6%. The equity capital of LICs raised by 42.2% (year-on-year) to KZT 110.7 billion.
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