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LICs showed record results in 2021

The premiums in the life insurance market in 2021 increased to 392.1 billion tenge, with unit-linked product. Last year turned out to be extremely successful for the life insurance market. The annual dynamics of total LIC premiums of 66% versus 16% in 2020 has been the best in the last four years.
LICs showed record results in 2021

The total gross premiums of LICs collected in January-December, reached 380 billion tenge, and with unit-linked sales - 392.1 billion tenge. The accumulative part of the insurance premium for this product increased to 12.1 billion tenge at the end of 2021. Nomad Life became the leader in collecting premiums with 128.5 billion tenge at the end of 2021. The total company’s portfolio amounted to 116.4 billion tenge as of early January 2022, including unit-linked sales - 128.5 billion tenge. The market share of LIC Nomad Life in the life insurance industry as of early January 2022 grew to 32.8% taking into account Unit-linked sales.

The “Life insurance” segment has become the most growing and most voluminous class of life insurance as of end of 2021. The increase in premiums in the Life Insurance class amounted to 82% against 26.9% in 2020, in monetary terms, premiums reached 177.6 billion tenge against 97.6 billion tenge in 2020. The increase is provided by the dynamics of premiums of the majority of LICs, while two companies have showed a negative trend in premiums at the end of 2021, they are as follows: LIC SAC (-58.2%) and LIC Freedom Finance (-12.3%).

LIC Halyk life with a portfolio of 74.1 billion tenge remains the leader of the Life Insurance segment, the LIC increased its market share in this segment from 37.6% to 41.8% in 2021. LIC Nomad Life collected the second largest portfolio of 61.7 billion tenge ending the year with a market share of 34.8%. LIC European Insurance Company (EIC) remains the third largest life insurer. In early January 2022, the LIC collected a portfolio of 27.6 billion tenge reducing its share in the segment from 18.1% to 15.6% in 2021.

The total LIC premiums on annuity insurance as of end of 2021 increased by 77% compared to 2020 (then the increase was 8.8%). The total premiums in 2021 amounted to 137.4 billion tenge against 77.6 billion tenge a year earlier in absolute terms. The dynamics of premiums on retirement annuities of 82.1% was traditionally higher, and looked especially strong against the backdrop of a dynamics of 9.2% following the results 2020. In monetary terms, the total portfolio of LICs on retirement annuities amounted to 129.9 billion tenge against 71.3 billion tenge in 2020. Annuity insurance and retirement annuities included in it grew thanks to the positive collections by all LICs.

LIC Nomad Life is still a leader in the segments of annuity insurance and retirement annuities. At the end of 2021, the volume of LIC premiums on annuity insurance increased to 44.7 billion tenge, including retirement annuities up to 43.4 billion tenge. As of early January 2022, LIC Nomad Life occupies 32.6% in the annuity segment, including 33.4% in the retirement annuity segment.

LIC Halyk life has the second largest portfolio of annuity premiums of 38.5 billion tenge, including 35.6 billion tenge of retirement annuities. As of end of 2021, the LIC occupies 28% of the market in the annuity insurance segment, including 27.4% in the retirement annuity segment. As of end of 2021, LIC Eurasia holds the third place, having collected 17.1 billion tenge, including 16.7 billion tenge on retirement annuities. The share of LIC Eurasia in the Annuity Insurance class is 12.5%, including 12.9% in the retirement annuity segment.

The dynamics of premiums in the Employer's Liability Annuities (ELA) class at the end of 2021 entered the positive zone showing an increase of 18.7% against a fall in premiums by 6.3% in 2020. The premiums amounted to 5.28 billion tenge in monetary terms.

Based on the results of 2021, LIC Halyk life became the leader of the ELA segment increasing its premium portfolio to 1.9 billion tenge and market share to 36%. LIC Nomad Life is in the second place, its premiums amount to 1.19 billion tenge and market share grew to 22.7%. The top three included LIC KM Life, which collected 608.1 million tenge of premiums occupying 11.5% in the segment as of early 2022.

The segment “Other types of annuity insurance” at the end of 2021 showed an increase in premiums by 20.5% against an increase of 43.9% in 2020. In absolute terms, the total portfolio of LIC premiums reached 2.18 billion tenge. LIC KM Life became the segment leader, the portfolio of which at the end of 2021 exceeded 1 billion tenge, and market share was 47%. LIC Halyk life with 998 million tenge of premiums ranks second, forming 45.7% of the segment's premiums. LIC Nomad Life closes the top three with the 122.2 million tenge portfolio and 5.6% market share.

Accident insurance premiums collected by LICs increased by 61.2% in 2021 against 27.7% in 2020. The premiums amounted to 20.6 billion tenge in monetary terms. As of end of 2021, the LIC KM Life is a segment leader having collected 7.6 billion tenge with a share of 37.17%. LIC Freedom Finance Life is in the second place with a portfolio of 5.19 billion tenge and market share of 25.2%. The third position is occupied by LIC EIC, which has collected 3.7 billion tenge and forms 18.1% of the segment.

The premiums in the sector “Insurance of employee against accidents in the performance of their labor duties” (CAI) increased by 6.2%, to 42.27 billion tenge at the end of 2021 against an increase of 2.2% in 2020. According to the results of 2021, the first place was taken by LIC Halyk life, which collected a portfolio of 9.5 billion tenge and made 22.5% of the segment.

The second place belongs to LIC Nomad Life, its premiums amount to 9.26 billion tenge, and the market share in the segment is 21.9%. LIC KM Life is the third having come close to the leaders with the 8.4 billion tenge portfolio and 19.9% market share. LIC KM Life eventually overtook LIC Eurasia, which collected 6.37 billion tenge and made 15.1% of the segment.

The dynamics of premiums for health insurance (VHI) collected among LICs, at the end of 2021 increased to 94.1% against 5559.1% in 2020. The decline in premium dynamics is explained by the different number of LICs involved in the premium collection. If in 2020 several companies entered the market at once ensuring rapid growth in premiums, in 2021 there were no new participants, moreover, by the beginning of 2022, LIC Eurasia reset to zero its premiums in the segment. The total VHI premiums amounted to 2.1 billion tenge in monetary terms.

Based on the results of 2021, the first place in the segment is taken by LIC KM Life, which collected 1.6 billion tenge of premiums and formed the 75.5% market share. LIC EIC is in the second place in VHI premium collection among LICs, the company collected 461.6 million tenge and increased its share in the segment to 21.8%. The third place is occupied by LIC Halyk life, which collected 28.6 million tenge, which was 1.3% of the VHI segment among LICs.

At the end of 2021, the LIC total assets accelerated in annual growth of 29.1%, to 779.6 billion tenge. The insurance reserves increased by 27.6% to 537 billion tenge.

The LIC equity capital increased by 28.8% compared to the same period in 2020 reaching 142.5 billion tenge.

Photos are from open sources.

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