In January-September 2020, the LIC gross premiums increased by 14% (year-on-year) reaching 158.6 billion tenge. For comparison, the LIC gross premiums increased by 10.1% in January-August, and by 6.2% in annual terms in January-July.
The life insurance sector remains the market driver and has shown excellent results in nine months. The premiums increased by 19.4% (yoy) to 63.2 billion tenge. LIC Halyk life has the maximum portfolio of life insurance premiums.
At the end of nine months of 2020, the LIC portfolio amounted to 26.4 billion tenge showing an annual growth of 0.6% and stopping the fall of the last two months. However, the dynamics recovery did not lead to the market share increase of LIC Halyk life in the life insurance sector. The share decreased to 41.9%, while in eight months the share reached 42.7%.
Life insurance company Nomad Life takes the second position in the life insurance sector in terms of portfolio volume. The company performs a significant dynamics of premiums of 122.3% (year-on-year), having collected 19.8 billion tenge. At the end of nine months of 2020, the share of Nomad Life in total premiums on life insurance increased to 31.4%.
LIC European Insurance Company (EIC) stays in third place in the life insurance sector reducing the volume of premiums. As of January-September 2020, premiums dropped by 22.1% compared to the same period in 2019, amounting to 12.4 billion tenge. The share of EIC in total life insurance premiums of LICs also continues to decline. By results of the first nine months of 2020, the share amounted to 19.6% versus 20.1% at the end of January-August 2020. It is worth noting the consistently high growth rates of premiums at LIC Standard Life. In the first nine months of 2020, the premiums in annual terms have increased by 78.4% exceeding 1 billion tenge. In January-September 2020, the aggregate life insurance portfolio of LICs accounted for 39.9% of total LIC fees versus 38% a year earlier.
Annuity insurance continues to increase premiums by results of the first nine months of 2020. The annual growth rose to 9.2% (following the results of eight months, the growth was 4.4%). In absolute terms, the premiums increased to 55.2 billion tenge. However, annuity insurance premiums are growing less dynamically than life insurance, so the share of annuity insurance in total LIC premiums for the first nine months of 2020 has decreased to 34.8% versus 36.3% in 2019.
Retirement annuities being a part of annuity insurance confirmed their growth in January-September 2020 and performed dynamics of 11.1%. The total portfolio of LICs on retirement annuities amounted to 51.1 billion tenge, and made 32.2% in the aggregate premiums of LICs against 33% a year earlier.
The leader of the segment of retirement annuities and annuity insurance sector is still LIC Nomad Life. As of end of September 2020, the LIC's annuity insurance portfolio amounted to 20.2 billion tenge accounting for 36.7% of this segment. Nomad Life's retirement annuity portfolio as of the same date made 19 billion tenge, which was 37.4% of the pension annuity segment.
The second place in terms of portfolio volume belongs to LIC Halyk life. As of end of September 2020, the company has collected 13.7 billion tenge of annuity insurance premiums (occupies 24.8% of this insurance segment) and 12.1 billion tenge of retirement annuities (makes 23.7% of this segment).
According to the results of nine months of 2020, LIC Eurasia LIC has broken into the top three largest LICs in annuity insurance. The company's portfolio on annuity insurance makes 6.9 billion tenge (12.6% of the annuity insurance segment), on retirement annuities - 6.7 billion tenge (13.2% share in the segment). LIC Standard Life, which previously occupied the third position in the segment, moved to the fourth place. The company collected 6.5 billion tenge in annuity insurance and accounted for 11.9% of the total premiums of this segment.
The employer liability annuity (ELA) premiums for the first nine months of 2020 showed a negative trend of 17.4% (yoy). Nevertheless, the drop in premiums slowed down significantly in comparison with the results of January-August, when the fall was 121.5% as of end of 2019. The LIC fees on ELA amounted to 3 billion tenge in monetary terms.
Following the results of nine months of 2020, there were changes in the top three leaders in the ELA segment. The first place was again taken by the LIC Nomad Life, its portfolio amounted to 889.8 million tenge occupying 29.2% of the ELA segment. LIC Halyk life moved to second place with a portfolio of 885.1 million tenge making 29% of the ELA segment.
LIC KM Life moved to the third place from fourth. By results of nine months of 2020, its portfolio amounted to 321.2 million tenge occupying 10.5% of the ELA segment. State Annuity Company (SAC), which previously had held the third position with a portfolio of 264.5 million tenge, reduced its market share in the segment to 8.7%.
The segment “Other types of annuity insurance” in the first nine months of 2020 showed an increase in premiums by 19.1% in annual terms. LIC fees exceeded 1.1 billion tenge. The collection of premiums in this segment is determined by LIC Halyk life, which has collected 715 million tenge of premiums, increasing the market share in the segment to 64.7%, and LIC Nomad Life that has attracted 273.8 million tenge and occupies 24.8% of the segment. The share of leading companies in the segment increased to 89.5%.
The third place with a market share of 6% is taken by LIC KM Life. The company has collected 66.4 million tenge of premiums. LIC Freedom Finance Life is still the fourth significant player with a market share of 4.2%, its portfolio amounts to 45.9 million tenge.
Accident insurance (AC) premiums collected by LICs continue to show a significant growth. For the first nine months of 2020, the total premiums of LICs in this segment amounted to 9.8 billion tenge, 41.2% more than last year. The maximum increase in premiums of 2,602.2% (year-on-year) was shown by LIC Nomad Life, increasing the portfolio to 207.2 million tenge.
Another impressive annual premium growth (389.1%) was performed by LIC Freedom Finance Life. The company's portfolio has reached 2.1 billion tenge, the result will allow it to step up from the third to the second place in the AI segment with the market share of 22.1%.
According to the results of nine months of 2020, LIC Halyk life holds the first place. The company has collected 2.6 billion tenge of premiums and occupies 26.7% of the AI segment among LICs. LIC KM Life moved to the third position. In January-September 2020, it collected 2 billion tenge reducing its market share to 20.6% from 22.5% in January-August.
The concentration of the accident insurance sector among LICs continues to decline. For nine months of 2020, the top three collected 69.5% of premiums against 72.1% of premiums in eight months of 2020 and against 93% of premiums collected by the two leading companies for the same period in 2019.
Health insurance premiums (VHI) among LICs for the first nine months of 2020 in annual terms increased by 6274.7%, to 915.2 million tenge due to the efforts of LIC KM Life. The company's portfolio amounted to 876.9 million tenge and accumulated 95.8% of the premium segment. Compared to January-August 2020, the market share of LIC KM Life dropped to the good of other companies. Thus, the share of LIC European Insurance Company (EIC) increased to 1.88% from 0.92% in January-August, the share of LIC Freedom Finance Life grew to 1.30% from 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 weak dynamics and in the first nine months of 2020 have increased in annual terms by 2.8%, to 29.3 billion tenge.
LIC Nomad Life has the largest CAI portfolio of 7.4 billion tenge allowing the company to take a share of 25.2% in the total CAI premiums. LIC Halyk life takes the second place having collected 6.59 billion tenge of premiums and occupies 22.5% of the CAI segment. The third position is held by LIC Eurasia with the portfolio of 4.6 billion tenge and making 16% the CAI segment.
As of January-September 2020, the total assets of LICs have grown by 42.7% (year-on-year) to KZT 566.5 billion. The insurance reserves amount to 399.6 billion tenge having increased by 25.3%. The equity capital of LICs has raised by 61.3% (year-on-year) to 105.99 billion tenge.