The total gross premiums of LICs in June 2022 showed a decrease by 11.6% compared to the same period last year, while in May, premiums fell by 14.3% in annual terms. LICs collected 161.4 billion tenge in total, including the accumulative part of Unit-linked insurance premium of 165.4 billion tenge. LIC Nomad Life remains the only life insurance company offering a Unit-linked investment life insurance product. The accumulative part of insurance premium on this product amounted to 4 billion tenge in June. The market share of LIC Nomad Life in the life insurance industry was 26.6% at the beginning of July 2022, including Unit-linked sales.
The dynamics of premiums in the Life Insurance class dropped to 6.9% in June in annual terms against a decrease in annual dynamics by 10.7% in May. However, compared to May, the premiums increased by 22.1%. LICs collected 84.4 billion tenge of premiums in total. Life insurance premiums form 51% of the total portfolio of LICs (including the accumulative part of insurance premium on the Unit-linked product). Out of nine LICs collecting premiums in this segment, two LICs showed a negative annual increase in premiums. In relation to May, all LICs showed a positive trend in premiums.
LIC Halyk life is a leader of the Life Insurance class. It built up its premium portfolio to 34.1 billion tenge, its market share in the segment, however, did not change and remained at 40.4%. The second position is taken by LIC Nomad Life, which portfolio in this insurance segment has grown to 21.6 billion tenge, and its market share is 25.6%. LIC European Insurance Company (EIC) remains the third largest insurer in the life insurance segment. As a result of June, the LIC’s premiums increased to 17.5 billion tenge, and the market share in the segment grew to 20.8% from 15.5% in May.
According to the results of June 2022, the dynamics of premiums in the Annuity Insurance class decreased by 44.8% in annual terms, which was less than the annual drop in premiums by 48.8% in May. The total portfolio of LICs on annuity insurance amounted to 41.7 billion tenge, accounting for 25.2% of the total LIC premiums. The premiums in the Retirement Annuity class fell by 48.7% to 37.1 billion tenge in annual terms. The reduction in premiums, however, was less than the results of May, when premiums fell by 53% in annual terms.
Based on the results of June 2022, LIC Nomad Life is still leading in the annuity insurance and retirement annuity segments. The company's portfolio of annuity insurance premiums grew to 13.6 billion tenge, including 12.9 billion tenge in the retirement annuity segment. The market share of LIC Nomad Life in the annuity insurance segment is 32.6%, including 34.8% in the retirement annuity segment.
LIC Halyk life is the second in annuity insurance with a portfolio of 12.1 billion tenge, including retirement annuity portfolio of 10.5 billion tenge. The company’s share in annuity insurance, including retirement annuities is 29.1% and 28.5%, respectively. LIC Freedom Life remains the third in the segment. The company’s portfolio of premiums on annuity insurance grew to 8 billion tenge, including 7.4 billion tenge on retirement annuities. The company’s market share in the annuity segment increased to 19.3%, and in pension annuities - to 20.2%.
Of the eight LICs collecting premiums in the annuity insurance segment, six showed a decrease in fees in annual terms.
The premiums on the Employer Liability Annuity (ELA) class grew by 1.7% (yoy) in June 2022 against a 7.1% annual increase in May. LICs collected 2.6 billion tenge in total. LIC Halyk life with a portfolio of 976.4 million tenge remains the leader of the ELA segment occupying 37.5% of this segment. The second largest portfolio of 588.5 million tenge with a market share of 22.6% is held by LIC Nomad Life.
LIC KM Life is the third largest insurer in the ELA segment. The company increased its premiums to 413.8 million tenge in June and formed 15.9% of total premiums in the ELA segment.
The “Other types of annuity insurance” segment again showed the maximum growth among the segments of the “Life insurance” industry in annual terms in June 2022. The dynamics amounted to 141.9% compared to the same period in 2021 against the annual dynamics of 127.5% in May. The total fees of LICs exceeded 2 billion tenge in monetary terms. The segment leader is LIC KM Life, which has increased its portfolio to 855 million tenge and occupies 40.9% of the segment against 35.8% in May. LIC Halyk life is in the second position with a portfolio of 625.8 million tenge and market share of 29.9%. The third position belongs to LIC Freedom Life with 469 million tenge of premiums and a 22.4% segment share.
Accident insurance (AI) fees collected by LICs fell by 5.1% in June 2022 in annual terms against a fall by 25.8% in May in annual terms. LICs collected 8.89 billion tenge in monetary terms. LIC Freedom Life is the segment leader with a 2.8 billion tenge portfolio and 31.6% market share in the segment. The second position is occupied by LIC EIC with 2.2 billion tenge of premiums and a 25% segment share. LIC Halyk life remains the third in the segment with a 2.1 billion tenge portfolio and a 24.4% market share.
The premiums in the “Insurance of an employee against accidents in the performance of their labor duties” (CAI) sector increased by 37.9% in annual terms in June 2022 against an increase of 31.5% (yoy) in May. LICs collected 24.4 billion tenge in total. LIC KM Life remains the segment leader, its portfolio has grown to 6.6 billion tenge, and market share is 27%. The second largest insurer in the segment is Halyk life, which has collected 4.8 billion tenge of premiums and has a market share of 19.7%. LIC Nomad Life with 4.6 billion tenge of premiums and market share of 18.9% is the third largest insurer in the CAI segment.
Health insurance premiums (VHI) among LICs in June 2022 increased by 122.9% in annual terms against an annual increase of 110.3% in May.
The total portfolio of premiums on VHI among LICs grew to 1.87 billion tenge. LIC KM Life remains the segment leader with a portfolio of 1.34 billion tenge, a monthly increase in premiums is 0.2%, an annual - 88.5%. Weak monthly dynamics negatively affects the market share of the company in the segment, which dropped to 71.6% against 79.3% in May and 83.3% in April. The decrease in the leader’s share is primarily due to growth of the LIC EIC’s portfolio, which is in the second place. The company's portfolio grew to 508.8 million tenge increasing the market share to 27.1% against 19.6% in May and 15.8% in April. LIC Freedom Life is in the third place in the segment among LICs with the portfolio of 16.3 million tenge and market share of 0.9% against 0.6% in May and April.
The total assets of LICs accelerated annual growth to 23.9% in June 2022 against an annual increase of 19.8% in May and exceeded 833 billion tenge. The insurance reserves grew by 25.1% against 22.6% (yoy) in May in annual terms exceeding 604.7 billion tenge. The equity capital of LICs increased by 17.7% compared to the same period last year to 148.5 billion tenge, which was higher than the annual growth of 9.9% in May.
