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LICs are maintaining a high growth rate

In January-September 2021, almost all segments of the life insurance market showed a double-digit increase in premiums
LICs are maintaining a high growth rate

According to the results of nine months of 2021, the dynamics of LIC premiums is still at a very high level. The total gross premiums of LICs collected in January-September 2021 increased by 74.2% in annual terms (79.8% in eight months) to 276.3 billion tenge. LIC Halyk life has got the largest portfolio of premiums of 92.7 billion tenge. The company's share in the life insurance market is 33.6%. LIC Nomad Life remains a leader in assets (222.7 billion tenge), insurance reserves (170.6 billion tenge) and retained earnings (9.4 billion tenge) among life insurance companies. LIC Nomad Life is the only life insurance company that offers a Unit-linked investment life insurance product. As of end of September 2021, the company's portfolio is 8.4 billion tenge.

According to the results of nine months of 2021, the Life Insurance segment remains the most fast growing and voluminous class of life insurance. The annual growth of premiums in the Life Insurance class amounted to 101.5%, in monetary terms, the premiums reached 127.5 billion tenge. The premiums grew due to the strong dynamics of fee collection by segment leaders; in annual terms, LIC Halyk Life increased its portfolio by 112.6%, and LIC Nomad Life - by 111%. LIC Standard Life has demonstrated the largest increase in premiums for seven months in a row: the premiums have grown by 256.6% (yoy) in September.

LIC Halyk life remains a leader of the Life Insurance segment having collected a portfolio of 56.3 billion tenge and occupied 44.2% of this segment. The second largest portfolio of 41.8 billion tenge was collected by LIC Nomad Life, the company grew its market share in the segment to 32.8%. LIC European Insurance Company (EIC) remains the third largest life insurer. As of end of September 2021, the LIC increased its portfolio to 20.2 billion tenge occupying 15.9% in the segment.

As of end of September 2021, the total premiums of LICs on annuity insurance showed a decrease in rates again and left the zone of three-digit growth. The insurance premiums increased by 85.9% versus 96.4% in August and 122.5% in July (yoy). The retirement annuity premiums also did not maintain three-digit dynamics in annual terms showing an increase of 90.8% against growth in August by 101.9% and in July by 129.8% (compared to the same periods in 2020). Annuity insurance and retirement annuities included in it grew due to the strong rates of fee collection by all LICs, most of which were above the market. The total premiums of LICs on annuity insurance in absolute terms amounted to 102.7 billion tenge, retirement annuities - 97.5 billion tenge.

LIC Nomad Life remains a leader of the annuity insurance and retirement annuity segments. According to the results of nine months of 2021, the volume of LIC premiums on annuity insurance increased to 32.7 billion tenge, including for retirement annuities up to 31.7 billion tenge. According to the results of September, LIC Nomad Life occupies 31.8% in the annuity segment, including 32.6% in the retirement annuity segment. The second largest portfolio of annuity premiums belongs to LIC Halyk life. It collected 27.9 billion tenge of annuity insurance premiums, including 26 billion tenge of retirement annuities. The share of LICs in the annuity insurance segment is 27.2%, in the retirement annuity segment - 26.7%. LIC Eurasia is in the third place having collected 13.5 billion tenge of premiums, including 13.3 billion tenge on retirement annuities. According to the results of nine months of 2021, LIC Eurasia has a 13.2% share in the Annuity Insurance class, including 13.7% in the retirement annuity segment.

The premiums on employer liability annuities (ELA) class for nine months of 2021 reduced the dynamics of premiums to 21.9% versus 23.4% for eight months and 31.5% for seven months (year-on-year) exceeding 3.7 billion tenge in annual terms. LIC Halyk life remains a leader of the ELA segment, its premiums have grown to 1.3 billion tenge, and the market share to 37.1%. The second place is taken by LIC Nomad Life, its premium portfolio has grown to 825.6 million tenge, and the market share is 22.2%. LIC Standard Life returned to the third position outstripping LIC KM Life by the results of nine months of 2021, which had to leave the top three leaders of the ELA segment. LIC Standard Life attracted 447.3 million tenge of premiums and formed 12% of the ELA segment. LIC KM Life collected 438.5 million tenge of premiums and occupied 11.8% of the ELA segment. As of end of September 2021, the share of the segment leaders continued to decline to 71.3% versus 71.9% in August and 72.5% in July.

The “Other types of annuity insurance” segment slowed down its annual dynamics to 36.1% in September against 45.3% in August and 56.6% in July. The aggregate portfolio of LIC premiums in monetary terms exceeded 1.5 billion tenge. LIC KM Life remains the segment leader. The premium portfolio of LICs has grown to 795.6 million tenge in September, but its market share continues to decline: it amounts to 52.9% versus 54.3% in August and 56.1% in July. The second result in the collection of premiums in the amount of 593.3 million tenge was shown by LIC Halyk life, it increased its market share in the segment to 39.5% against 38.5% in August. LIC Nomad Life is the third largest insurer in the segment, the company has collected 87.7 million tenge and increased its market share to 5.8%. According to the results of nine months of 2021, the three largest LICs in the “Other types of annuity insurance” class collected 98.2% of premiums showing zero growth over the results of eight months of 2021.

Accident insurance premiums collected by LICs for the first nine months of 2021, have increased the attracting dynamics to 34% against 33% in August (year-on-year). The aggregate premiums of LICs are 13.2 billion tenge in absolute terms.

KM Life is the segment leader, which 4 billion tenge portfolio has been showing extremely weak dynamics in relation to the previous month for the fourth month in a row. The LIC’s premiums grew by 100.3% in annual terms. Weak premium dynamics reduce the company’s market share; it dropped to 30.8% in September against 33.9% in August and 37.7% in July. LIC Freedom Finance Life takes the second position having collected 3.7 billion tenge and increased its market share to 28.6% against 26.6% in August and 24.5% in July. The third place is held by LIC EIC. It collected 2.69 billion tenge and increased its market share to 20.4% against 19% in August and 17.7% in July.

The premiums in the “Insurance of the employee against accidents in the performance of his labor duties” sector (CAI) for the first nine months of 2021 have showed an increase of 6.4% against 5.3% in August and 5.6% in July (year-on-year). The total fees of LICs on compulsory accident insurance amount to 31.2 billion tenge.

LIC Nomad Life is still the CAI segment leader having collected the portfolio of 7.59 billion tenge and increased its market share in the segment to 24.3% against 23.8% in August. According to the results of September, LIC Halyk life is the second largest insurer in CAI as of September; the company has collected 6.8 billion tenge of premiums and occupies 22% of the segment against 23% in August. The third place was taken by LIC Eurasia, which collected 5.39 billion tenge, but reduced its share in the segment to 17.3% against 18% in August. The share of three LICs leading in the CAI segment amounted to 63.7% at the end of nine months of 2021.

In the first nine months of 2021, the collection of premiums on health insurance (VHI) by LICs accelerated to 78% against 71.9% in August (year-on-year). The premiums exceeded 1.6 billion tenge in monetary terms. LIC KM Life remains the largest insurer in the segment having collected 1.3 billion tenge, while reduced its market share to 83.8% against 88.5% in August. The share is decreased due to the weak dynamics of premiums versus August (2%) and a slowdown in the annual dynamics; over nine months the premiums have increased by 55.7% against 56.9% growth in eight months of 2021.

The second place on VHI premium collection among LICs is taken by LIC EIC. The company collected 217 million tenge and increased its share in the segment to 13.3% against 9.3% in August. LIC Halyk life is in the third place having collected 24.6 million tenge (1.5% in the segment) and outstripped LIC Freedom Finance Life with 19.1 million tenge (1.2% of the segment).

According to the results of nine months of 2021, the total LIC assets increased by 25.7% to 711.8 billion tenge. Insurance reserves grew by 27.7% and exceeded 510.2 billion tenge. Equity capital of LICs increased by 30.1% to 137.9 billion tenge.

 

Photos are from open sources.

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