The total gross premiums of LICs in May 2023, including unit-linked sales, accelerated the growth dynamics to 33.8% against an increase of 26.8% in April (all year-on-year). The total insurance portfolio in monetary terms amounted to 173.7 billion tenge.
LIC Nomad Life continues to be the only LIC offering a Unit-linked investment life insurance product. As of early April, the assets of LIC Nomad Life were 260.9 billion tenge, equity capital - 28.2 billion tenge, insurance reserves - 204.2 billion tenge. As of June 1, 2023, the market share of LIC Nomad Life in the life insurance industry, including Unit-linked sales, is 24.8%, which corresponds to a 43.1 billion tenge insurance portfolio.
Life insurance premiums increased by 7.7% in annual terms in May against a fall in annual terms by 4.7% in April. LICs collected 74.5 billion tenge in monetary terms. Due to increase, the share of life insurance premiums in the total LIC portfolio rose to 42.9% against 40.1% in April. According to the results of May, LIC Halyk life is still the leader of the segment with a portfolio of 33.1 billion tenge, which corresponds to a share in the segment of 44.5% (44.3% in April). The second place is taken by LIC Nomad Life. The company collected 18.9 billion tenge of premiums corresponding to a 25.4% share of the segment (21.5% in April). LIC European Insurance Company (EIC) is in the third place with a 11.1 billion tenge portfolio and a 15% market share in the segment (18.3% in April). The premium concentration of the three largest LICs in the segment grew to 84.9% against 84% in April. Of the 9 LICs collecting life insurance premiums, 5 showed an increase in premiums in annual terms, 8 LICs showed an increase compared to the previous month.
The volume of premiums on SESS built up to 22.5 million tenge in May showing an increase of 35.6% compared to the previous month. The April increase amounted to 73.3% compared to the results of March. Four LICs continue to collect premiums. LIC Halyk life with a portfolio of 10.5 million tenge remains the leader of the segment, which corresponds to a 46.6% share (the leader’s share in the segment was 50.3% in April). LIC Freedom Life is in the second place with a 9.9 million tenge portfolio. The company increased its share in the segment to 44.1% in May against 38.8% in April. LIC Nomad Life is in the third place with a portfolio of 1.3 million tenge or 6% of the segment. Due to the small number of insurers, premiums are highly concentrated. The 3 largest LICs account for 99.2% of premiums.
Annuity insurance, excluding retirement annuities, grew by 50% in May 2023 against an increase of 46.5% in April (all year on year). The volume of premiums exceeded 2 billion tenge in monetary terms. LIC KM Life remains the leader of the segment, its portfolio has grown to 1.4 billion tenge and occupies 70.2% in the segment (in April 68.6%). LIC Halyk life is the second with a volume of premiums of 554.7 million tenge, which corresponds to a 27.2% share in the segment (28.8% in April). LIC Nomad Life is the third with a portfolio of 38 million tenge and a market share of 1.9%. The insurance segment is distinguished by a high concentration of premiums: the share of the 3 largest LICs in the segment reaches 99.2%.
The portfolio of retirement annuity premiums maintained a high growth momentum in May 2023. The premiums increased by 53.5% (in April - by 57.3%) to 44.7 billion tenge in annual terms. However, the share of retirement annuities in total LIC premiums dropped to 25.7% from 27.9 in April. Of the 7 LICs collecting premiums on retirement annuities, 6 showed a positive trend (4 of them outperformed the market), one of them reduced the attraction of premiums. LIC Nomad Life remains the leader in the retirement annuity segment with premiums of 15.4 billion tenge, which corresponds to a 34.5% share in the segment (34.2% in April). LIC Halyk life is in the second place with a portfolio of 12.6 billion tenge and segment share of 28.3% (28.5% in April). The third position is occupied by LIC Freedom Life with a 8.9 billion tenge portfolio, which corresponds to a 20% share in the segment (19.1% in April). The concentration of the three largest LICs in the segment rose to 82.9% in May against 81.8% in April.
Accident insurance (AI) premiums collected among LICs increased by 168.4% in annual terms in May 2023 against an annual growth of 197.7% in April. The premium dynamics are declining. The increase was 204.4% in March. LICs collected 16.7 billion tenge in monetary terms. LIC Freedom Life remains the segment leader with a portfolio of 8 billion tenge, which corresponds to 48.2% in the segment (47.4% in April). LIC EIC stepped up to the second place from the third, its portfolio grew to 3.29 billion tenge or a 19.7% share in the segment (18.4% in April). KM Life dropped down to the third place from the second. The company’s portfolio amounted to 2.8 billion tenge, and its share in the segment decreased to 17% against 19.9% in April. Of the 8 LICs collecting premiums, 6 showed positive growth, of which 4 were higher than the market growth rate. The market is gradually reducing its concentration. The top three accident insurers by LICs occupies 84.8% of the segment against 85.6% in April.
The collection of premiums in the sector “Insurance of an employee against accidents in the performance of their labor duties” (CAI) accelerated by 75.4% in May 2023 against an increase of 64.7% in April (all year-on-year). Cash collections of LICs exceeded 34 billion tenge. According to the results of May, LIC Halyk life remained the leader of the segment with a portfolio of 10.1 billion tenge, or 30% of the segment, while in April the share of the leader was 32.1%. LIC Nomad Life is in the second place with a portfolio of 8.4 billion tenge, which is 24.8% of the segment. LIC Standard Life took the third position with a portfolio of 4.3 billion tenge or 12.7% in the segment. LIC KM Life dropped out of the top three. The company collected 3.8 billion tenge of premiums or 11.3% of the segment. Five out of 8 LICs collecting premiums on CAI showed an annual increase in premiums. The segment is declining. The share of the three largest LICs in the class is 67.4% against 71.8% in April.
The segment of health insurance (VHI) by LIC was the only one that showed a decrease in premiums in May and April. The fall in premiums in annual terms amounted to 10.4% against a decrease in annual terms by 5% in April. The fees amounted to 1.5 billion tenge in absolute terms. LIC EIC remains the segment leader. The company collected 1.3 billion tenge of premiums and occupied 86.5% of the segment in May against 72.4% in April. LIC Freedom Life moved up to the second position from the third place with a portfolio of 101.1 million tenge forming 6.7% of the share of the segment. LIC KM Life returned to the top three with a 92.5 million tenge portfolio, or 6.1% of the segment. LIC Eurasia left top-3. According to the results of April, it occupied 16.2% of the segment (0.3% in March), in May, it returned to a 0.3%share. The share of the top three VHI insurers among LICs again exceeded 99% against a decrease to 94.8% in April (99.3% in March).
As of April 1, 2023, the total LIC assets grew by 24.3% (yoy) to 963.8 billion tenge. The insurance reserves increased by 16.4% exceeding 665.5 billion tenge. The equity capital of LICs built up by 56.9% compared to the same period in 2022 and amounted to 211.3 billion tenge.
Photos are from open sources.
