bs-preloader__icon
ru kz en

LICs have increased dynamics for ten months of 2020

In January-October 2020, LIC gross premiums increased by 14.4% (year-on-year) reaching 179.4 billion tenge. It is notable that by the end of ten months of 2020, the total premium leader in the LIC market has changed. LIC Nomad Life collected 54,792 million tenge and drew ahead LIC Halyk life (54,762 million tenge) in terms of the total portfolio. A year ago, the size of premiums of LIC Nomad Life was falling behind the premiums of LIC Halyk life by 18 billion tenge.
LICs have increased dynamics for ten months of 2020

In terms of insurance segments, the life insurance sector made a significant contribution to the growth of total premiums. Based on results of ten months, it has increased by 22.9% in annual terms reaching 73.4 billion tenge. LIC Halyk life still has the maximum portfolio of life insurance premiums.

Based on results of ten months of 2020, the LIC portfolio exceeded 30 billion tenge speeding up growth in annual terms to 1.2%. The premium dynamics boost, however, did not help LIC Halyk life to maintain market share in the life insurance sector. According to the results of ten months, the share has dropped to 41%.

LIC Nomad Life takes the second place in the life insurance sector in terms of portfolio. At the end of January-October 2020, the company increased the dynamics of premiums to 143.8% collecting 23.9 billion tenge. The acceleration allowed LIC Nomad Life to build up its market share in the life insurance sector to 32.6%.

LIC European Insurance Company (EIC) remains the third largest player in the life insurance segment. According to the results of ten months of 2020, the company’s premiums dropped by 21.5% (year-on-year) collecting 14 billion tenge. The negative dynamics of premiums led to the loss of a part of the market. The share of EIC in the total life insurance premiums of LICs fell to 19.2%.

LIC Standard Life keeps showing high dynamics of premiums. In January-October, the growth of premiums in the life insurance segment amounted to 79% (yoy), in January-September the LIC premiums grew by 78.4% in annual terms. For ten months of 2020, LIC Standard Life has collected 1.26 billion tenge of premiums. A stable collection of life insurance premiums by combined efforts of the entire market led to the segment's share increase from 38% to 40.9% (year-on-year), in the total LIC premiums.

According to the results of ten months of 2020, annuity insurance maintains a positive dynamics of premiums. The annual growth was 6.6% reaching 62.3 billion tenge in absolute terms. Nevertheless, the slower growth of premiums in annuity insurance compared to the life insurance segment leads to a decrease in the share of the annuity insurance portfolio in the total premiums of LICs. At the end of ten months of 2020, the market share of annuities has been 34.7% versus 37.3% for the same period in 2019.

Retirement annuities being a part of annuity insurance showed a bolder growth of 7.6% (yoy) in January-October 2020. The total portfolio of LICs on retirement annuities amounts to 57.4 billion tenge and occupies 32% of the total premiums of LICs against 34% a year earlier.

LIC Nomad Life remains a leader of the retirement annuity segment and the annuity insurance sector. As of end of October 2020, LIC's annuity insurance portfolio amounted to 22.4 billion tenge accounting for 36% of this segment. The retirement annuity portfolio of Nomad Life as of the same date made 21 billion tenge taking 36.7% of the retirement annuity segment.

The second place in terms of portfolio volume belongs to LIC Halyk life. As of end of October 2020, the company collected 14.9 billion tenge of annuity insurance premiums (23.9% of this insurance segment) and 13 billion tenge of retirement annuities (22.8% of this segment).

According to the results of ten months of 2020, LIC Eurasia has settled itself in the three largest LICs in annuity insurance. The company's annuity insurance portfolio has grown to 8.1 billion tenge and occupies 13% of the annuity insurance segment. In terms of retirement annuities, the portfolio of LIC Eurasia reached 7.89 billion tenge forming 13.7% share in the segment.

The employer liability annuities (ELA) premiums for ten months of 2020 have reduced the decline. The total portfolio of LICs in this segment decreased by 11.9% (yoy), while in the first nine months the decline was 17.4% (yoy). In monetary terms, LIC fees for ELA amounted to 3.58 billion tenge.

According to the results of ten months of 2020, LIC Nomad Life has remained the leader in the ELA segment. The company's portfolio exceeded 1 billion tenge, thereby, increasing the company's market share in the ELA segment to 30.1%. LIC Halyk life is still in the second place.

The company's portfolio in this segment also grew to 1 billion tenge, and the market share strengthened to 29.1% of the ELA segment.

The third position belongs to LIC KM Life. At the end of ten months of 2020, its portfolio grew to 368.7 million tenge, and the market share was 10.3%, which was slightly less than at the end of nine months, when the share was 10.5% of the ELA segment.

The segment "Other types of annuity insurance" showed a high increase in premiums by 29.7% in annual terms based on the results of ten months of 2020. The fees of LICs exceeded 1.3 billion tenge. The leading role in this segment belongs to two companies. LIC Halyk life has collected 800.9 million tenge of premiums, however, having reduced the market share in the segment to 60.2% against 64.7% in January-September. LIC Nomad Life has attracted 287.8 million tenge of premiums and occupies 21.6% of the segment. Due to the premium growth among other LICs, the share of leading companies in the segment in January-October 2020 decreased to 81.8% against 89.4% in January-September.

LIC KM Life continues to strengthen its position in the third place. For ten months of 2020, it has collected 187.2 million premiums against 66.4 million tenge premiums in January-September. The result will allow LIC to increase its share in the segment to 14.1% from 6% in January-September.

According to the results of the period, the fourth significant player in the segment LIC Freedom Finance Life reduced its market share to 3.5% against 4.2% in January-September. The company's portfolio made 46 million tenge in absolute terms.

Accident insurance (AI) fees collected by LICs continue to show impressive growth. For ten months of 2020, the aggregate premiums of LICs in this segment have exceeded 11 billion tenge, 40% more than at the end of 2019.

LIC Nomad Life showed the maximum increase in premiums by 750% (year-on-year) building up its portfolio to 240.3 million tenge. Another high premium increase (409.21%) is offered by LIC Freedom Finance Life. The company's portfolio reached 2.7 billion tenge. The result will allow LIC to keep the second place in the AI segment with a market share of 24.6%.

According to the results of ten months of 2020, LIC Halyk life is in the first place. It attracted 2.8 billion tenge of premiums slowing down, however, their dynamics. For this reason, the company's market share in total AI premiums among LICs decreased to 25.7%. According to the results of ten months of 2020, the third position was taken by LIC EIC. In January-October 2020 it collected 2.1 billion tenge increasing its market share to 19.1% and outstripping LIC KM Life, which attracted 2 billion tenge of premiums and took 18.4% of the AI segment among LICs.

The concentration of the accident insurance sector among LICs in January-October 2020 remained similar to the results of January-September, when the top three LICs collected 69.4% of premiums. However, by the end of the same period in 2019, the concentration in the segment reduced sharply: at that time, the three leading companies in the segment collected 99.4% of premiums.

Health insurance premiums (VHI) among LICs for ten months of 2020 in annual terms have continued to grow at an astronomical rate and increased by 6601.5% exceeding 1 billion tenge. The main contribution to the segment growth was made by LIC KM Life.

The company's portfolio will increase to 1 billion tenge and accumulate 94.7% of the premium segment. Compared to January-September 2020, the market share of LIC KM Life has declined to the advantage of other companies. Thus, the share of LIC EIC grew from 1.88% to 2.97%, the share of LIC Freedom Finance Life remained at the level of 1.28%, respectively.

The premiums in the sector "Insurance of an employee against accidents in the performance of his labor duties" (CAI) continue to show slow dynamics and at the end of ten months of 2020 have grown in annual terms by 2.6%, to 31.4 billion tenge.

The largest CAI portfolio of 8.16 billion tenge remains with LIC Nomad Life, which made it possible to increase the market share in the segment to 25.9% in the total CAI premiums. LIC Halyk life is in the second place, the company has collected 6.89 billion tenge of premiums, but its market share in the segment has decreased to 21.9%. The third position is held by LIC Eurasia with the portfolio of 4.9 billion tenge, which has reduced the market share of the CAI segment to 15.8%.

At the end of January-October 2020, the total assets of LICs have grown by 40.2% (year-on-year) to KZT 573.4 billion. The insurance reserves amount to 404.9 billion tenge having increased by 25.2%. The equity capital of LICs grew by 55.6% (year-on-year) to 107.4 billion tenge.

Photos are from open sources.

Share
read also
Life insurance industry leaders sum up the results of the year 2019 and share plans for next year
Life insurance industry leaders sum up the results of the year 2019 and share plans for next year

The network publication LIFE INSURANCE, Information and Analytical Website on Life In...

The Belarusian pension system
The Belarusian pension system

Labor pensions in Belarus include several types and the most important factor when gr...

How to teach kids to save money
How to teach kids to save money

Money is an integral part of our daily life. We use it every day, pay for purchases a...

The most interesting materials of the site you have in the mail! Subscribe to the newsletter.

ASK A QUESTION TO THE EXPERT
ASK A QUESTION TO THE EXPERT
Submit your application