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LICs retains a high growth rate

In January-October 2021, the life insurance premiums exceeded 305 billion tenge.
LICs retains a high growth rate

The dynamics of LIC premiums in annual terms have amounted to 75.4% for ten months of 2021. The total gross premiums of LICs collected for January-October reached 314.6 * billion tenge.

LIC Halyk life has got the maximum portfolio of premiums of 103.1 billion tenge. The share of the company in the life insurance market is 32.8%. LIC Nomad Life remains the leader in assets (232.8 billion tenge), insurance reserves (172.1 billion tenge) and retained earnings (9.2 billion tenge) among life insurance companies. In terms of insurance reserves, the company is leading in the entire insurance market of the Republic of Kazakhstan. The market share of LIC Nomad Life in the life insurance industry is 32.2% (101.3 billion tenge*); it is the only life insurance company that offers an investment life insurance product Unit-linked. The company's portfolio increased to 9.1 billion tenge at the end of October 2021.

The Life Insurance segment is still a fast growing and most voluminous class of life insurance at the end of ten months of 2021. The annual growth of premiums in the Life insurance class amounted to 94.9%, the premiums reached 143.1 billion tenge in monetary terms. The increase in premiums was ensured by high fees by the segment leaders: in annual terms LIC Halyk Life built up its portfolio by 107.8%, and LIC Nomad Life - by 98.6%. LIC Standard Life has been demonstrating the largest increase in premiums for eight months in a row: the premiums have grown 239% (yoy) in October.

LIC Halyk life remains the leader of the Life Insurance segment. The company collected the portfolio of 62.4 billion tenge but reduced its share in this segment to 43.7%. The second largest portfolio of 47.5 billion tenge was collected by LIC Nomad Life increasing the market share in the segment to 33.2%. LIC European Insurance Company (EIC) remains the third largest life insurer. At the end of October 2021, the LIC increased its portfolio to 22.6 billion tenge occupying 15.8% in the segment.

The total LIC premiums on annuity insurance continued to slow down at the end of October 2021. Insurance premiums increased by 80.3%, while in September the premiums grew by 85.9%, in August by 96.4% (year-on-year). The dynamics of premiums on retirement annuities in annual terms are also declining, showing an increase of 80.3% against 90.8% and 101.9% in August (compared to the same periods in 2020). Annuity insurance and retirement annuities included in it grew due to strong fees of all LICs, but only a part of them showed dynamics above the market. The total LIC premiums on annuity insurance in absolute terms amounted to 112.4 billion tenge, on retirement annuities - 106.4 billion tenge.

LIC Nomad Life is still a leader of the annuity insurance and retirement annuity segments. According to the results of January-October 2021, the volume of LIC premiums on annuity insurance increased to 36 billion tenge, including 35 billion tenge on retirement annuities. According to the results of October, LIC Nomad Life holds 32% in the annuity segment, including 32.9% in the retirement annuity segment. The second largest portfolio of annuity premiums belongs to LIC Halyk life, which has collected 31.1 billion tenge of annuity insurance premiums, including 28.8 billion tenge on retirement annuities. The share of LICs in the annuity insurance segment is 27.7%, in the retirement annuity segment - 27.1%. LIC Eurasia is in the third place having collected 14.7 billion tenge of premiums, including 14.4 billion tenge on retirement annuities. According to the results of ten months of 2021, LIC Eurasia has a 13.1% share in the Annuity Insurance class, including 13.5% in the retirement annuity segment.

The premiums on Employer Liability Annuities (ELA) class for ten months of 2021 in annual terms reduced the dynamics of premiums to 20.1% versus 21.9% for nine months and 23.4% for eight months (year-on-year) exceeding 4.3 billion tenge. LIC Halyk life remains the ELA segment leader having increased its premium portfolio to 1.5 billion tenge with a market share of 36.3%. LIC Nomad Life is in the second place with the 933.4 million tenge premium portfolio and 21.7% market share. LIC KM Life regained the third place by collecting 514.3 million tenge of premiums and surpassing LIC Standard Life with premiums of 512.5 million tenge. According to the results of ten months of 2021, LIC KM Life occupies 11.9% of the ELA segment. LIC Standard Life occupies 11.89% of the ELA segment.

The share of the three segment leaders has continued to decline and at the end of ten months of 2021 amounted to 69.9% versus 71.5% in nine months and 71.9% in eight months.

The dynamics of premiums in the segment "Other types of annuity insurance" in October 2021 fell to 27.3% in annual terms against an increase of 36.1% in September. The total portfolio of LIC premiums reached 1.69 billion tenge in absolute terms. LIC KM Life is still the segment leader. The portfolio of LIC premiums increased to 849.7 million tenge in October but the market share decreased to 50.2% against 52.9% in September.

LIC Halyk life ranks second in the collection of segment premiums having collected 713.3 million tenge. The company continues to increase premiums, its market share in the segment amounts to 42.1% in October against 39.5% in September. The third position with a 98.1 million tenge portfolio is taken by LIC Nomad Life with the market share of 5.8%. According to the results of ten months of 2021, the top three LICs in the “Other types of annuity insurance” class collected 98%.

Accident insurance premiums collected by LICs amounted to 14.78 billion tenge at the end of ten months of 2021 showing an increase of 33.4% compared to the same period in 2020. The segment leader changed in October. The first place was taken by LIC Freedom Finance Life, which collected 4.3 billion tenge of premiums and increased its market share in the segment to 29.2% against 28.6% in September. The former leader LIC KM Life dropped to second place with the index of 4 billion tenge. The company has been showing a very weak portfolio growth dynamics for the fifth month in a row. As a result, its market share decreased to 27.6% against 30.8% in September. The third position was taken by the LIC EIC, which collected 3 billion tenge of premiums and increased the segment share to 20.6% against 20.4% in September.

The premiums in the sector “Insurance of an employee against accidents in the performance of his labor duties” (CAI) at the end of ten months of 2021 showed an increase of 6.2%, however, lowering the dynamics of 6.4% at the end of nine months (year-on-year). The aggregate LIC portfolio on compulsory accident insurance reached 33.4 billion tenge. LIC Nomad Life remains the leader of the CAI segment; its portfolio has exceeded 8 billion tenge with the LIC’s market share in the segment of 24.2%. According to the results of October, LIC Halyk life is the second largest insurer in CAI; it has collected 7.39 billion tenge of premiums and takes 22.1% of the segment. The third place is occupied by LIC Eurasia with the portfolio of 5.8 billion tenge and share in the segment of 17.4%. The market share of the three LICs, leaders in the CAI segment, at the end of ten months of 2021 amounted to 63.7%, without undergoing any changes compared to the results of September.

The health insurance (VHI) premiums collected among LICs in the first ten months of 2021 slowed down the annual growth rate to 66.3% against 78%, which the companies showed in the first nine months of 2021. The premiums exceeded 1.75 billion tenge in monetary terms.

LIC KM Life remains the largest insurer of the segment among LICs, having collected 1.4 billion tenge of premiums while again reducing the market share. As of end of October 2021, the portfolio of LIC KM Life occupies 80.3% of the VHI segment among LICs, against 83.8% at the end of September. The share reduction is due to a 3.3% weak dynamics of premiums in relation to September, and a slowdown in annual dynamics: at the end of ten months of 2021, premiums have grown by 40.9%, while at the end of nine months the increase has been 55.7%.

LIC EIC is in the second place in terms of VHI premiums among LICs, which has collected 294.6 million tenge, and increased its share in the segment to 16.8% against a share of 13.3% in September. The third place is held by LIC Halyk life, which has collected 26.1 million tenge but has not increased its market share in the segment. By the end of October 2021, the share of LIC Halyk life on VHI among LICs did not change in relation to September.

At the end of ten months of 2021, the total assets of LICs accelerated in growth to 28%, to 733.7 billion tenge in monetary terms. Insurance reserves increased by 27.3% reaching 515.5 billion tenge. Equity capital of LICs increased by 32.2% compared to the same period in 2020 reaching 142 billion tenge.

*With Unit-linked premiums (reflected on the website of the National Bank of the Republic of Kazakhstan as reference data on the cumulative part of the product’s insurance premium)

Photos are from open sources.

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