At the end of 2022, the total collection of LIC premiums was 0.8% lower than a year earlier. The total gross premiums of LICs collected in January-December reached 377.1 billion tenge, and including unit-linked sales - 381.4 billion tenge. LIC Nomad Life remains the only life insurance company offering a Unit-linked investment life insurance product. The cumulative part of insurance premium on this product was 4.28 billion tenge in 2022. The market share of LIC Nomad Life including Unit-linked sales in the life insurance industry as of 2022 is 23.9%, which equals to 91 billion tenge.
The dynamics of premiums in the Life Insurance class grew by 5.7% in annual terms in 2022 against an increase of 82% in 2021. LICs collectively gathered 187.7 billion tenge in absolute values, the largest amount of premiums among all life insurance segments. The increase in premiums was provided by the positive annual dynamics of five LICs, four LICs showed a decline in premiums.
Based on the results of 2022, LIC Halyk life is leading in the Life insurance class. The company's portfolio in this segment grew to 73.5 billion tenge, and the market share was 39.2% (in 2021 - 41.8%). The second place was taken by the European Insurance Company (EIC); it collected 47 billion tenge of premiums and increased its share in the segment from 15.6% to 25%. The top three is closed by LIC Nomad Life, the company has collected 46.5 billion tenge of premiums, which equals to a 24.8% share in the class segment. At the end of 2022, the share of the Life Insurance class in total LIC premiums built up from 45.3% to 49.2%. The share of the top three LICs in the class dropped to 88.9% from 92% a year earlier.
The total LIC fees on annuity insurance showed a negative trend of 33.7% at the end of 2022 against an increase of 77% in 2021 (all year-on-year).
In monetary terms, total premiums exceeded 91 billion tenge in 2022 against 137.4 billion a year earlier. Out of eight LICs operating in this segment, only three showed a positive annual dynamics of premiums. The decline in retirement annuity premiums was 37.7% against an increase of 82.1% in 2021. In monetary terms, the total portfolio of LICs amounted to 80.9 billion tenge against 129.9 billion tenge in 2021. Only two out of eight LICs showed an increase in premiums in this segment. At the end of 2022, the share of annuity insurance in total LIC premiums dropped to 23.8% from 35% a year earlier. The share of the three largest LICs in the class rose from 73% to 80.9%.
Based on the results of 2022, LIC Nomad Life remains the leader in the segments of annuity insurance and retirement annuities. The volume of LIC premiums on annuity insurance amounted to 28.9 billion tenge, including on retirement annuities up to 27.4 billion tenge. As of early January 2023, LIC Nomad Life forms 31.7% in the annuity segment, including 33.9% in the retirement annuity segment.
The second in terms of annuity premiums is LIC Halyk life with 26.5 billion tenge, including 23.19 billion tenge in retirement annuities. At the end of 2022, the company makes 29.1% of the market in the annuity insurance segment, including 28.7% in the retirement annuity segment. At the end of the year, LIC Freedom Life took the third place with a 18.2 billion tenge portfolio in the Annuity Insurance class (20% of the segment) and a 17.3 billion tenge portfolio in the Retirement Annuity segment (21.4% market). LIC Eurasia left the top three. It collected 4.68 billion tenge of premiums on annuity insurance (5.1% in the segment) and 4.1 billion tenge of premiums on retirement annuities (5.1% in the retirement annuity segment).
Premiums in the Employer Liability Annuity (ELA) class grew by 16.9% in annual terms, to 6.18 billion tenge in 2022 against an increase of 18.7% in 2021. LIC Halyk life with a 2.2 billion tenge portfolio remains the leader of the ELA segment. The company’s share in the segment has dropped from 38% to 35.7% over the year. LIC Nomad Life is the second in the ELA segment with a 1.2 billion tenge portfolio and 19.7% segment share. LIC KM Life remains in third place at the end of the year. The company’s portfolio is 1.1 billion tenge, the share in the segment is 18.1%. Six out of eight LICs collecting premiums in the ELA segment showed positive premium growth rates.
The segment "Other types of annuity insurance" showed an increase in premiums by 84.1% in 2022 against an increase of 20.5% in 2021. LIC fees exceeded 3.9 billion tenge in monetary terms. LIC KM Life is still leading in the segment. The company's portfolio in the segment exceeded 2 billion tenge, and the market share was 51% (47% in 2021). LIC Halyk life occupies the second place with a 1.1 billion tenge portfolio, which is equal to 28.5% market share. LIC Freedom Life collected 515 million tenge of premiums and built up its share in the segment to 13% from 0.4% in 2021.
Accident insurance premiums collected per LIC increased by 13.7% in 2022 against 61.2% in 2021. The total portfolio of LICs amounted to 23.4 billion tenge in absolute terms. LIC Freedom Life became the segment leader. The company collected 7 billion tenge of premiums, which formed 29.9% share of the segment (25.2% at the end of 2021). LIC EIC is the second with a portfolio of 6.2 billion tenge. The company’s share in the segment is 26.7% compared to 18.1% in 2021. At the end of 2022, LIC KM Life went down to third place collecting 5.2 billion tenge or 22.5% of segment premiums. In 2021, the LIC ranked first with 37.1% of collected premiums. At the end of 2022, the share of AI premiums in total LIC premiums was 6.1% compared to 5.2% a year earlier. The share of the three largest LICs in the class declined to 79% from 80.3% a year earlier. Four out of eight LICs collecting premiums in Accident Insurance showed a positive premium dynamics.
Premiums in the class “Insurance of an employee against accidents in the performance of their labor duties” (CAI) grew by 67.5% in annual terms at the end of 2022 against an increase of 6.2% at the end of 2021. LICs collected 70.8 billion tenge in monetary terms. LIC Halyk life collected 21 billion tenge and retained its leadership in the CAI segment at the end of 2022. The share of LICs in the segment increased to 29.7% against 22.5% in 2021. LIC KM Life is in the second place with a 13.7 billion tenge portfolio. The company’s share in the segment decreased from 19.5% at the end of 2022 against 19.9% at the end of 2021. The third place was taken by LIC Eurasia with a 13.3 billion tenge portfolio and market share of 18.8% against 15.1% in 2021. Seven LICs collecting premiums under CAI showed a positive trend in premiums in 2022, four of which were higher than the market growth rate (year-on-year). The three largest LICs in the segment account for 67.9% of the segment’s share (64.2% in 2021).
Health insurance premiums (VHI) by LIC showed the best growth among segments of the Life Insurance industry in 2022. The increase was 90.9% but turned out to be worse than the annual dynamics of 2021 at 94.1%. In total, LICs collected 4 billion tenge of premiums. LIC KM Life remains the segment leader as of end of the year, having collected over 2 billion tenge. In 2022, the company’s market share dropped from 75.5% to 51.1%. LIC EIC is in the second place with a 1.9 billion tenge portfolio of premiums. The market share of the company in the segment grew to 41.7% against 21.8% in 2021. LIC Freedom Life occupies the third place in the VHI segment by LIC. The company built up its premium portfolio in the segment to 40.9 million tenge in 2022, the market rate was 1% against 1.3% a year earlier.
In 2022, the total assets of LICs increased by 17.9% (in 2021 - by 29.1%) and reached 919.5 billion tenge. The insurance reserves grew by 23% (in 2021 - by 27.6%) to 660.7 billion tenge. The equity capital of LICs rose by 21.8% (in 2021 - by 28.8%) to 173.6 billion tenge. The LIC retained earnings increased by 38.3% (in 2021 - by 27.2%), to 59 billion tenge.
