Eleven months of 2021 demonstrated a slowdown in the dynamics of total LIC premiums, the dynamics amounted to 67.6% against 70.3% for the same period in 2020 in annual terms. The total gross premiums of LICs collected in January-November, reached 335.5 billion tenge, including unit-linked sales - 345.7 billion tenge.
The only life insurance company that offers an investment life insurance product Unit-linked is LIC Nomad Life. The company's portfolio on this product increased to 10.1 billion tenge at the end of November 2021. LIC Halyk life remains the leader in collecting premiums in the amount of 113.5 billion tenge.
The company’s market share as of November showed zero dynamics and remained at the level of 33.8% as of early December. LIC Nomad Life is in the second place with the total portfolio of 102 billion tenge as of early December, 2021 (including unit-linked sales - 112.1 billion tenge), the company's market share in the industry increased to 30.4% (including unit-linked sales up to 32.5%).
Based on the results of eleven months of 2021, the Life Insurance segment continues to be the fastest growing and largest class of life insurance. The annual increase in premiums in the Life Insurance class amounted to 90.4%, the premiums reached 158.6 billion tenge in monetary terms. The growth was provided by the dynamics of premiums of all LICs, except for LIC SAC, which had reduced the volume of premiums.
LIC Halyk life remains the leader of the Life Insurance segment having collected a portfolio of 68.4 billion tenge but having reduced its share in this segment to 43.2%. LIC Nomad Life collected the second largest portfolio of 53.2 billion tenge increasing its market share in the segment to 33.5%. LIC European Insurance Company (EIC) remains the third largest life insurer. As of early December 2021, LIC increased its portfolio to 25 billion tenge while maintaining its share in the segment at 15.8%.
The growth of total LIC premiums on annuity insurance kept slowing down in November 2021. Insurance fees in annual terms increased by 77.1% against 80.3% in October and 85.9% in September. The total premiums on annuity insurance amounted to 123.3 billion tenge in absolute terms. The dynamics of premiums on retirement annuities in annual terms, on the contrary, turned up, amounting to 81.8% against an increase of 80.3% in October. The total LIC portfolio on retirement annuities in monetary terms amounted to 116.5 billion tenge. Annuity insurance and retirement annuities included in it, were growing thanks to the positive collections by all LICs.
LIC Nomad Life is still leading in the annuity insurance and retirement annuity segments. According to the results of January-November 2021, the volume of LIC annuity insurance premiums increased to 39.8 billion tenge, including retirement annuities up to 38.6 billion tenge. As of early December, LIC Nomad Life has made 32.3% in the annuity segment, including 33.2% in the retirement annuity segment. LIC Halyk life has the second largest portfolio of annuity premiums, 34.4 billion tenge of premiums on annuity insurance, including 31.9 billion tenge on retirement annuities. The share of LICs in the annuity insurance segment was 27.9%, in the retirement annuity segment - 27.4%. LIC Eurasia is the third, having collected 15.8 billion tenge, including 15.4 billion tenge on retirement annuities. Based on the results of eleven months of 2021, LIC Eurasia holds 12.8% in the annuity insurance class, including 13.3% in the retirement annuity segment.
Premiums in the Employer's Liability Annuities (ELA) class at the end of eleven months of 2021 increased the dynamics to 21.7% in annual terms against an increase of 20.1% at the end of ten months exceeding 4.9 billion tenge. Nevertheless, the dynamics of ELA was minimal among other annuity insurance segments.
LIC Halyk life remains the ELA segment leader, having increased its portfolio of premiums to 1.7 billion tenge, but reduced its market share from 36.3% to 34.9%. LIC Nomad Life is the second, its premiums exceeded 1 billion tenge and the market share grew to 22.2%. LIC KM Life is in the third place having collected 582.5 million tenge of premiums (the share in the segment is 11.9%, having unchanged over the month). The share of the top three segment leaders continued to decline. At the end of eleven months of 2021, it amounted to 68.9% against 69.9% at the end of ten months and 71.5% at the end of nine months.
The dynamics of premiums in the “Other types of annuity insurance” segment continued to fall in November 2021, amounting to 24.7% against the dynamics by 27.3% in October and growth by 36.1% in September (yoy). The total portfolio of LIC premiums in absolute terms reached 1.87 billion tenge. LIC KM Life is still a leader of the segment. The portfolio of LIC premiums increased to 922.2 million tenge in November, however, the market share continued to decline, amounting to 49.1% at the beginning of December.
LIC Halyk life ranks second in the collection of premiums in this segment, having collected 816.5 million tenge. The company continues to increase its market share in the segment: in November it has been 43.5% against 42.1% in October. The top three is closed by LIC Nomad Life with a portfolio of 105.6 million tenge and a 5.6% market share. According to the results of eleven months of 2021, the top three LICs in the “Other types of annuity insurance” class increased their share to 98.2%.
According to the results of eleven months of 2021, accident insurance (AI) premiums collected among LICs were 15.9 billion tenge showing an increase of 34.4% against 33.4% compared to the same period in 2020. LIC Freedom Finance Life maintains its leadership in the segment, having collected 4.87 billion tenge and increased its market share to 30.6% against 29.2% in the first ten months. LIC KM Life remains the second with a 4-billion tenge and a 25.7% share against a share of 27.6% in October. LIC EIC takes the third place having collected 3.3 billion tenge and increased its share in the segment to 21.2% against a share of 20.6% in October.
The increase in premiums in the “Insurance of an employee against accidents in the performance of their labor duties” (CAI) sector for eleven months of 2021 reduced to 4% against 6.2% for ten months (year-on-year). The total portfolio of LICs on CAI reached 35.7 billion tenge. Two LICs Nomad Life and Halyk life are the segment leaders having collected by 8.3 billion tenge. Each LIC occupies 23.5% of the CAI market. The third place with premiums of 6 billion tenge and the market share of 17% (17.4% in the first ten months) is taken by LIC Eurasia. According to the results of eleven months of 2021, the market share of the top three LICs, the CAI segment leaders, made 63.9% showing a slight increase.
The dynamics of premiums on health insurance (VHI) collected among LICs, increased to 80.2% for the eleven months of 2021 against 66.3% for the ten months (year-on-year). The premiums exceeded 1.9 billion tenge in monetary terms.
LIC KM Life is still the largest segment insurer among LICs having slightly increased premiums to 1.49 billion tenge of premiums and reduced its market share to 77.5% against 80.3% in October. The second place in collection of voluntary medical insurance premiums among LICs is taken by LIC EIC, which has collected 376.8 million tenge and increased its share in the segment to 19.6% against 16.8% in October. The third place is occupied by LIC Halyk life, the company has collected 27.4 million tenge, which is 1.4% of the VMI segment among LICs.
According to the results of eleven months of 2021, the total assets of LICs accelerated in annual growth to 29.9%, to 754.9 billion tenge. Insurance reserves increased by 27.3% (showing similar dynamics with January-October 2020), to 522.6 billion tenge.
The equity capital of LICs increased by 33.2% compared to the same period in 2020 reaching 142.1 billion tenge.
Photos are from open sources.
