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LICs increase fees

The dynamics of LIC premiums shows good results
LICs increase fees

Total gross LIC premiums, including unit-linked sales grew by 54.3% in annual terms in February 2024 against an annual increase in February 2023 of 44.9%. The premiums built up by 103.8% in monthly terms. LICs collected 106.6 billion tenge in total (69 billion tenge a year earlier).

The premiums on the Life Insurance class increased by 45.9% in annual terms in February 2024 against a fall of 2% in 2023. Compared to January, the fees grew by 83.7%. In total, LICs collected 36.2 billion tenge (a year ago – 24.8 billion tenge). In the total portfolio of LICs, the share of life insurance premiums fell to 33.9% compared to 35.9% a year earlier. LIC Halyk life is still leading in the life insurance segment with a 14.4 billion tenge  portfolio. The company’s premiums grew by 70.5% in annual terms. The market share in the segment was 39.9% in February versus 36.5% in January (in February 2023 – 34.1%). LIC Nomad Life is in the second place with a volume of premiums of 9.9 billion tenge. The company’s premiums enhanced by 81.2% in annual terms. The share in the segment grew to 27.5% from 22.1% a year earlier. LIC Freedom Finance Life is in the third place with a 5 billion tenge portfolio of premiums. In February, the company showed an annual increase in premiums by 189.7% and formed a 15.3% share in the segment against 13.7% in January (in February 2023 - 7.7% of the segment). Of the 8 LICs collecting premiums in the life insurance segment, one LIC showed a decline in premiums. The share of the three largest LICs in the segment in February dropped to 82.6% compared to 85.1% a year earlier.

The premiums in the class “life insurance within the framework of the state educational savings system” (SESS) increased to 32 million tenge in February (1.8 million tenge a year earlier). In annual terms, the premiums grew by 1604.8%, and in relation to January - by 178.8%. LIC Nomad Life keeps its leading position in the segment with a portfolio of 12.1 million tenge. In monthly terms, the company’s premiums built up by 157.2%. The segment share of the company in total fees on the SESS class is 37.9% (as of January results - 41.1%). At the end of February, LIC Freedom Finance Life took second position with a 8.7 million tenge portfolio. The company’s share in the segment increased to 27.2% from 24.4% in January. LIC Eurasia closes the top three leaders in the SESS segment. Its fees amount to 4.8 million tenge equal to a 15.1% share in the segment (3.5% as of January results). LIC Halyk life with a portfolio of 4.79 million tenge and a share in the segment of 14.9% (as of January - 28.7%) left the top three largest LICs in the SESS segment. At the end of February, the fees of the top 3 LICs in the segment accounted for 80.1% versus 94.2% in January.

Annuity insurance excluding retirement annuities reduced the collection of premiums by 47.1% in February 2024 against their increase of 116.3% a year earlier (all year-on-year). In January, the negative dynamics of premiums was 35.3%. LICs got over 1 billion tenge in monetary terms (a year ago – 2 billion tenge). LIC KM Life retains its leadership in the segment with a 768.4 million tenge portfolio or a 71.2% segment share. At the end of January, the company’s portfolio formed 77.6%, in February 2023 – 24.7%. LIC Halyk life is in the second place with a 245.4 million tenge portfolio and a 22.7% segment share versus 19.8% in January (in February 2023 – 15.8%). LIC Standard Life with 33.5 million tenge occupies 3.1% of the market (as of January – 1.1%) and the third position in the segment. The share of the three largest LICs in the class is 97% versus 98.3% in January.

The dynamics of retirement annuity premiums amounted to 60.9% in annual terms in February 2024 against an annual increase of 94.8% in February 2023. In January, the premiums grew by 78.5%. LICs collected 33.7 billion tenge in total (20.9 billion tenge a year ago). The share of retirement annuities in total LIC premiums built up to 31.6% compared to 30.3% a year earlier. LIC Halyk life is leading in the retirement annuity segment with 11.5 billion tenge. The company’s share in the segment increased to 34.3% against 33.2% in January (at the end of February 2023, the share was 32.4%). LIC Nomad Life is in the second place with 9.6 billion tenge of premiums. It segment share grew to 28.6% against 25.1% in January (in February 2023 the share was 33.7%). The third position is taken by LIC Freedom Life with a portfolio of 3.7 billion tenge. The company’s share in the segment decreased to 21.6% against 24% in January (in February 2023 the share was 21.3%). The share of the three largest LICs in the class reached 84.5% versus 87.4% a year earlier.

Accident insurance premiums collected by LICs grew by 40.9% in February 2024 against an increase of 482.3% in February 2023 (all year-on-year). In January the increase was 43.7%. The LIC portfolio amounted to 11.9 billion tenge in monetary terms (8.5 billion tenge a year earlier). The share of the AI segment in total LIC fees is 11.2% versus 12.3% in February 2023. LIC Freedom Finance Life remains the leader in the AI segment by LIC with a 7.4 billion tenge portfolio. The company’s share in the segment is 62% versus 45.5% in January (in February 2023 – 42.3%). KM Life is in the second place with a 2.7 billion tenge portfolio, its share in the segment s 22.6% versus 42.5% in January (in February 2023 – 28.7%). The third place is occupied by LIC European Insurance Company (EIC) with a 1.3 billion tenge portfolio, and its segment share is 10.9% versus 9.5% in January (in February 2023 – 14.1%). The premiums of the three largest LICs in the accident insurance form 95.5% of the segment (a year earlier - 85%).

At the end of February 2024, the premiums in the sector “Insurance of an employee against accidents during the performance of work duties” (CAI) enhanced the growth dynamics to 87.1% against the dynamics of 71.2% in February 2023 (all year-on-year). The premiums increased by 73.7% in January. LICs collected 22.6 billion tenge in total (12 billion tenge a year ago). The share of CAI premiums in total LIC fees amounted to 21% versus 17.3% a year earlier. At the end of February, LIC Halyk life was the segment leader with a portfolio of 10 billion tenge. The company’s share in the segment built up to 44.9% against 32.2% in January (at the end of February 2023 - 45.6%). LIC Nomad Life is the second with a 5.3 billion tenge portfolio and a 26.3% segment share versus 34.6% in January (in February 2023 – 25.3%). LIC Eurasia is in the top three leaders in terms of CAI with a portfolio of 2.6 billion tenge. The company’s share in the segment built up to 11.6% against 10.1% in January. LIC KM Life left the top three largest LICs on CAI with a 7.8% segment share equal to 1.7 billion tenge. The premiums of the three largest LICs account for 80.1% (81.8% a year earlier).

Health insurance premiums (VHI) by LIC increased by 50.3% in February 2024 against a decline of 45.6% a year earlier (all year-on-year). The premiums grew by 41.2% in January. The premiums exceeded 1 billion tenge in absolute figures (711.5 million a year ago). The leadership in the segment is retained by LIC EIC with a 604.1 million tenge portfolio. The company’s share in the segment is 56.5% versus 58.3% in January (81.1% a year ago). LIC Eurasia is in the second place with a portfolio of 250.8 million tenge. The segment share of LIC Eurasia is 23.5% versus 26.8% in January (0.2% in February 2023). LIC Nomad Life is the third with a 127.8 million tenge portfolio. Its segment share is 12% versus 12.6% in January. The premiums of the three largest LICs on voluntary health insurance by LIC are 91.9% versus 99.3% a year earlier.

As of January 1, 2024, the total LIC assets reached 1,118 billion tenge, insurance reserves increased to 769.6 billion tenge, and equity capital built up to 248.5 billion tenge. Retained earnings of LICs grew to 101.9 billion tenge.

 

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