At the end of November 2022, the collection of total gross premiums of LICs dropped by 0.9% in annual terms against a 1.8% decrease in annual terms in October. LICs collected 332.5 billion tenge in monetary terms, and 336.8 billion tenge including the accumulative part of insurance premium on the Unit-linked product. LIC Nomad Life remains the only life insurance company offering the Unit-linked investment life insurance product. The cumulative part of insurance premium on this product amounted to 4.2 billion tenge in November. As of beginning of December 2022, the market share of LIC Nomad Life in the life insurance industry was 23.6%, including Unit-linked sales, which was equivalent to 79.5 billion tenge.
Dynamics of premiums in the Life Insurance class in annual terms was 5.8% in November against growth by 5.6% in annual terms in October. LICs collectively gained 167.8 billion tenge in absolute terms. Life Insurance premiums per insurance classes in the total portfolio of LICs (including the accumulative part of the insurance premium on the Unit-linked product) decreased to 49.8% against 51% in October. Six out of nine LICs collecting premiums in this segment showed an annual increase in premiums above the market growth rate.
LIC Halyk life retains its leadership in the Life Insurance class. The company's portfolio in this segment in November increased to 68.3 billion tenge, and the market share was 40.7% against 41.7% in October. The second place was taken by the European Insurance Company (EIC), which attracted 40.6 billion tenge of premiums and built up its share in the segment to 24.2%. LIC Nomad Life is in the third place. The company collected 39.8 billion tenge of premiums increasing its share in the segment to 23.7%.
The dynamics of premiums on the Annuity Insurance class showed a fall of 35.1% in November 2022 against a drop of 35.4% in October (all year on year). In total, LICs collected over 80 billion tenge in absolute terms. The share of annuity premiums in the total portfolio of LICs among insurance classes amounted to 23.7% in November. Three out of eight LICs collecting premiums under the Annuity Insurance class showed a positive increase in premiums in annual terms, and five LICs showed a decrease in premiums, with four LICs declining below the rate of market decline.
The collection of premiums in the Retirement Annuity class in November 2022 reduced by 38.9% against a decrease of 39.1% in November 2021 (yoy). LICs collected 71.2 billion tenge in monetary terms. Two out of seven LICs collecting premiums in the retirement annuity segment showed an annual increase in premiums, five - a decrease in fees in annual terms; the negative dynamics of premiums of three LICs turned out to be lower than the market decline.
LIC Nomad Life keeps its leadership in the annuity insurance and retirement annuities segments. At the end of November 2022, the LIC premium portfolio on annuity insurance exceeded 25.5 billion tenge, including 24.3 billion tenge on retirement annuity segment. The market share of LIC Nomad Life in the annuity insurance segment grew to 32%, including 34.1% in the retirement annuity segment.
LIC Halyk life is in the second place in annuity insurance with a portfolio of 22.9 billion tenge, including the retirement annuity portfolio of 19.8 billion tenge.
The share of the LIC portfolio in total annuity insurance premiums amounted to 28.6%, including 27.9% on retirement annuities. LIC Freedom Life is still the third in the segment. The collection of premiums on annuity insurance of the LIC in November increased to 16.5 billion tenge, including 15.7 billion tenge on retirement annuities.
The market share of LIC Freedom Life in the annuity segment dropped to 20.7%, and in retirement annuities - to 22.1%.
Premiums in the Employer Liability Annuities (ELA) class increased by 9.1% year-on-year in November 2022 against an annual growth of 9.5% in October. LICs collected 5.3 billion tenge in total. LIC Halyk life remains the leader of the ELA segment with 1.9 billion tenge portfolio. The company built up its share in the segment to 37% in November against a 36.6% share in October. LIC Nomad Life occupies the second place in the ELA segment with a 1.1 billion tenge portfolio, which is 20.6% of the segment's total premiums. According to the results of November, LIC KM Life is in the third place of the ELA segment. The company’s portfolio was 915.2 million tenge and its share dropped to 17.1% in total premiums of the ELA segment. Five out of eight LICs collecting premiums in the ELA segment performed positive premium growth rates, and three LICs showed negative premium dynamics (year-on-year).
The segment "Other types of annuity insurance" showed a positive trend in premium growth by 82.6% in November 2022 against an increase of 78.9% in October compared to the same period in 2021. LIC fees exceeded 3.4 billion tenge in monetary terms. LIC KM Life is still leading in the segment. The company's portfolio in the segment increased to 1.6 billion tenge, and the segment market share grew to 47.2% against a 46.7% share in October. LIC Halyk life was the second, its portfolio of premiums in the segment exceeded 1 billion tenge which allowed increasing the market share to 30.5%. LIC Freedom Life is the third. The company collected 512.8 million tenge of premiums and reduced its share in the segment to 15% from a 16.9% share in October.
Accident insurance premiums collected among LICs grew by 24.9% in annual terms in November 2022 against an annual increase of 27.7% in October. The total portfolio of LICs in the AI segment in absolute terms amounted to 19.9 billion tenge. LIC Freedom Life remains the segment leader. The company collected 6.5 billion tenge of premiums, however, the share of its portfolio in the segment reduced to 32.6% in November against a 32.8% share in October. LIC EIC with a portfolio of premiums of 5.3 billion tenge is in the second place, having increased its share in the segment to 26.7% from 25.7% in October. LIC Halyk life remains the third largest insurer in the segment with 3.9 billion tenge portfolio and 19.8% market share.
The premiums in the “Insurance of an employee against accidents in the performance of their labor duties” class (CAI) grew by 71% in annual terms in November 2022 against a 63.2% increase in October. LICs collected 61.1 billion tenge in monetary terms. LIC Halyk life retains leadership in the CAI segment.
The LIC portfolio grew to 19.6 billion tenge in November, and its share in the segment increased to 32.2% against 28.4% in October. LIC Eurasia is in the second place with a 13 billion tenge portfolio. The share of the company in the segment decreased to 21.3% against 22.7% in October. The third place is occupied by LIC Nomad Life. It collected 9.6 billion tenge of premiums, but reduced its market share in the segment to 15.8%. Seven LICs collecting premiums under CAI showed positive dynamics of premiums in November, four of them were higher than the market growth rates (year-on-year). One LIC showed a decrease in the collection of premiums.
Health insurance premiums (VHI) among LICs in November 2022 showed the best growth among the life insurance industry segments. The increase in annual terms amounted to 92.7% but turned out to be worse than the annual dynamics 96.3% as of October.
The total portfolio of premiums on VHI per LIC grew to 3.7 billion tenge. LIC KM Life remains the segment leader having raised over 2 billion tenge. The annual increase in the LIC premiums as of November was 37.9%, and monthly increase was 0.2%. Weak dynamics reduces the market share of KM Life in the VHI segment. In November, it dropped to 55.5% against 59.6% in October. LIC EIC is the second with a 1.5 billion tenge portfolio of premiums. The market share of the LIC in the segment increased to 42.7% against 38.7% in October. LIC Freedom Life occupies the third place in the VHI segment per LIC. The company has built up its portfolio of premiums in the segment to 37.5 million tenge in November, while the market rate remains within 1%.
The total assets of LICs in November 2022 increased by 20.3% compared to the same period in 2021 and formed 908.4 billion tenge. The insurance reserves grew by 25.3% to 654.9 billion tenge in annual terms. The equity capital of LICs increased by 23.7% to 175.7 billion tenge. The undistributed profit of LICs grew by 35% in annual terms in November against an annual increase of 17.5% in October, to 52.3 billion tenge.
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