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Sustainable growth rate

LICs maintained a high monthly increase in premiums in April 2022.
Sustainable growth rate

The dynamics of the total gross premiums of LICs in annual terms has been falling for the second month in a row. The rates fell by 13% in April 2022 compared to the same period in 2021. However, the monthly increase in premiums remains high: in relation to March, LIC premiums grew by 33.3%. LICs collected 109.4 billion tenge in monetary terms, including the cumulative part of the insurance premium on the Unit-linked product.

LIC Nomad Life remains the only life insurance company offering a Unit-linked investment life insurance product. The accumulative part of the insurance premium on this product in April increased to 3.7 billion tenge. According to data of the National Bank of the Republic of Kazakhstan, based on the results of April 2022, LIC Nomad Life is the leader among LICs in terms of collected premiums (34.3 billion tenge), including unit-linked sales. The market share of LIC Nomad Life in the life insurance industry as of early May 2022 was 31.5%, including Unit-linked sales.

The growth rate of premiums in the life insurance segment continued to decline in April. The dynamics was 18.1% against 29.6% in March 2022 in annual terms. LICs collected 56.4 billion tenge, the share of premiums in the life insurance segment was 51.6% in the total portfolio of LICs.

LIC Halyk life became a leader of the life insurance segment in April; it raised 21.49 billion tenge and increased its share in the segment to 38.1%. LIC Nomad Life is the second, the company’s portfolio in this insurance segment is 18.19 billion tenge, and its market is 32.2%. LIC European Insurance Company (EIC) remains the third largest insurer in the life insurance segment. At the end of April, LIC premiums grew to 7.97 billion tenge, which helped increase the market share in the segment to 14.1%.

Annuity insurance in April 2022 continued to adjust down the depth of the fall. The drop in premiums amounted to 50.2% in annual terms against an annual decline of 52.8% in March 2022. Six LICs of eight operating in the life insurance segment showed a negative trend in premium collection. The total portfolio of LICs on annuity insurance amounted to 27.3 billion tenge making 24.9% of the total premiums of LICs.

The premiums on retirement annuities in annual terms fell by 54.7% against the annual fall in March 2022 by 51.7%. The fees were 23.76 billion tenge in absolute terms. Based on the results of April 2022, LIC Nomad Life remains the leader in the segments of annuity insurance and retirement annuities. The company's premium portfolio on annuity insurance equals to 8.79 billion tenge, including 8.2 billion tenge on the retirement annuity segment. The market share of LIC Nomad Life in the annuity insurance segment is 32.2%, including 34.5% on the retirement annuity segment.

LIC Halyk life has the second largest portfolio in annuity insurance in the amount of 7.95 billion tenge, including retirement annuities of 6.8 billion tenge, it occupies 29.1% of the annuity insurance segment, including 28.8% in the pension annuities segment. The third position is taken by LIC Freedom Finance Life; its premium portfolio has exceeded 5 billion tenge in the annuity insurance segment, including 4.49 billion tenge on retirement annuities. The result allowed LIC to increase its market share in the annuity segment to 18.5% and in pension annuities to 18.9%.

The collection of premiums in the Employer Liability Annuities (ELA) class at the end of April 2022 continued to show positive dynamics, however, its pace was lower than in March. The April increase in premiums amounted to 12.1% in annual terms against the annual increase in March of 29.5%. Life insurance companies collected 1.99 billion tenge in total.

LIC Halyk life remains the leader of the ELA segment. As of early May 2022, the LIC portfolio in the segment was 711.1 million tenge with the market share of 35.7%. The second largest portfolio of 505.4 million tenge and market share of 25.4% is held by LIC Nomad Life. LIC KM Life remains the third major insurer in the ELA segment. The company's portfolio grew to 326.8 million tenge in April, which led to an increase in its segment market share to 16.4%.

The “Other types of annuity insurance” segment increased the dynamics of total premiums to 143.5% in April 2022 in annual terms against annual dynamics of 111.9% in March 2022. The high dynamics of premiums was ensured by the positive growth in premiums of four LICs. The total collection of LICs amounted to 1.55 billion tenge in monetary terms.

As of end of April 2022, the leader in the “Other types of annuity insurance” segment changed. KM Life moved up to the first place from the second with 564.7 million tenge, which allowed it to form the market share of 36.3% against 28.6% in March. The former leader, LIC Freedom Finance Life, is now the second largest insurer in the segment. The company's portfolio was 464.99 million tenge of premiums, and the market share in the segment dropped to 29.9% against a 39.4% share in March 2022. LIC Halyk life remains the third having raised 409.6 million tenge and has increased its market share in the segment to 26.3% against 25.7% in March 2022.

Accident insurance premiums (AI) collected by LIC reduced the dynamics of the fall in April 2022. The decline in premiums in annual terms amounted to 21.8% against the annual fall in fees by 27.6% in March. LICs collected 4.6 billion tenge in total.

There were again rearrangements in the top three largest LICs, AI insurers, in April. LIC Freedom Finance Life moved from the second place to the first with a portfolio of 1.39 billion tenge. The company's market share in the AI segment among LICs increased to 29.5% from 24.4% in March. LIC Halyk life went down to the second place from the first with 1.16 billion tenge of premiums; the company reduced its market share in the segment to 25.2% against 27.3% in March. According to the results of April, LIC EIC remains in place having collected over 1 billion tenge of premiums, and has increased its market share in the segment to 22.2% against 21.5% in March.

According to the results of April 2022, the premiums in the sector “Insurance of an employee against accidents in the performance of labor duties” (CAI) increased by 28.7% in annual terms, reducing the growth rate compared to March, when the dynamics increased to 31.2% in annual terms. The total portfolio of LICs on CAI amounted to 15.7 billion tenge.

As of end of April 2022, there were serious reshuffles of the largest insurers in the segment. LIC Nomad Life is the segment leader, having collected 3.6 billion tenge of premiums and has increased its market share in the segment to 23% against 22.8% in March. LIC KM Life took the second place with a portfolio of 3.34 billion tenge and market share of 21% (according to the results of March 2022, it occupied 13.6% of the market with a portfolio of 1.4 billion tenge). The March leader, LIC Halyk life, which collected 3.1 billion tenge of premiums and reduced its market share in the segment to 19.8% against 24.5% in March, dropped to the third position. LIC Eurasia with a portfolio of 2 billion tenge and market share of 13% left the top three insurers in CAI.

Health insurance premiums (VHI) among LICs again showed the highest growth dynamics among all segments of LIC premiums in April 2022. The premiums increased by 109% in annual terms slightly falling in dynamics compared to the annual growth in March, when the dynamics was 112.7%. The total portfolio of premiums on VHI among LICs was 1.59 billion tenge.

LIC KM Life remains the segment leader with a portfolio of 1.33 billion tenge. The company's portfolio grew by 92.8% in annual terms against the annual increase in March by 91.4%. High dynamics did not help LIC KM Life to retain its market share in the segment. According to the results of April, it dropped to 83.3% against 85.3% in March. The decrease in the leader’s share is due to the portfolio growth of LIC EIC, the company number two. The dynamics of the portfolio of this company was 295.8% in annual terms and 252.9 million tenge in absolute terms. The market share increased to 15.8% against 13.9% in March.

As of end of April 2022, the total assets of LICs increased by 20.8% (yoy) to 788.3 billion tenge. The insurance reserves increased by 24.2% to 582.6 billion tenge in annual terms. The equity capital of LICs grew by 8% (yoy) to 132.9 billion tenge.

Photos are from open sources.

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