The total gross LIC premiums, including unit-linked sales grew by 33% in July 2023 against a 32.6% increase in June (all year-on-year). The total insurance portfolio rose to 262.8 billion tenge in monetary terms. LIC Nomad Life remains the only company offering a Unit-linked investment life insurance product. According to the National Bank of the Republic of Kazakhstan, as of August 1, 2023, the company's market share in the life insurance industry was 24% or 63.1 billion, including Unit-linked. As of early July 2023, the assets of LIC Nomad Life amounted to 290.6 billion tenge, equity - 24.3 billion tenge, insurance reserves - 212.3 billion tenge.
Life insurance premiums rose by 11.2% in annual terms in July against an annual increase of 11.5% in June. LICs collected over 114 billion tenge in monetary terms. The decrease in collection fees reduced the share of life insurance premiums in the total LIC portfolio to 43.38% against 43.9% in June. According to the results of July, LIC Halyk life remains the leader of the segment with a 52.7 billion tenge portfolio having increased its share in the segment to 46.3% against 45% in June. The second place is taken by LIC Nomad Life. The company has collected 29.1 billion tenge of premiums and holds a 25.6% share in the segment. Both LICs showed premium growth in July above market rates. LIC European Insurance Company (EIC) is in the third place with a 14.8 billion tenge portfolio. The negative annual dynamics of premiums reduced the share of LIC EIC in the life insurance segment to 13% against 14.3% in June. The concentration of premiums of the three largest LICs in the segment amounted to 84.88% in July against 85% in June. The share of the first two LICs in the top 3 is 84.6%. 8 LICs showed positive dynamics of premiums in monthly terms, 6 LICs - in annual terms.
The dynamics of premiums under the SESS in July against June was 61.3%, while the premiums in June against May increased by 62.3%. LICs collected 59.1 million tenge in total. Four LICs continue to collect premiums. LIC Halyk life with a 29 million tenge portfolio remains the segment leader. The company’s share in the segment dropped to 49.1% in July against 58.9% in June. LIC Nomad Life took the second place with a 14.7 million tenge portfolio or a 24.9% market share in the segment (4.2% in June). LIC Freedom Life dropped to the third place with a 14.3 million tenge portfolio and a 24.3% segment share (33.8% in June). Concentration in the SESS segment remains high. The share of the top three insurers is 98.2% against 97.7% in June.
Annuity insurance excluding retirement annuities in July 2023 repeated the annual dynamics of June showing an increase of 54.9%. The volume of premiums amounted to 2.9 billion tenge in monetary terms. LIC KM Life with a portfolio of over 2 billion tenge remains the segment leader; its annual premium growth of 127% is the best in the segment. Thanks to the high dynamics, the company strengthened its position in the segment, which had previously declined. The company’s share grew up to 68.7% in July against 67.7% a month earlier.
LIC Halyk life is in the second place with 735.7 million tenge of premiums, which corresponds to a 24.9% share in the segment (25.7% in June). LIC Freedom Life is in the third place with a 134.3 million tenge portfolio, which is 4.5% of the segment (4.4% in June). The concentration of the segment has grown again. The share of the top three insurers in the segment in July was 98.1% against 97.7% in June.
The portfolio of retirement annuity premiums continued to reduce its growth dynamics in July 2023. In annual terms, the premiums increased by 44.1% against the dynamics of 44.9% in June. The volume of premiums amounted to 62.2 billion tenge in monetary terms. The share of retirement annuities in the total LIC portfolio was 23.7% going down from 25% in June. LIC Nomad Life remains the leader in the retirement annuity segment with 21 billion tenge of premiums, which correspond to a 33.8% share in the segment (34.4% in May). LIC Halyk life is in the second place with a 17.8 billion tenge portfolio and a 28.7% share in the segment (a similar result of 28.7% in June). The third position belongs to LIC Freedom Life; its portfolio has grown to 12.5 billion tenge, which corresponds to a 20.2% share in the segment (a similar result of 20.2% in June). The concentration of premiums of the three largest LICs in the segment dropped to 82.66% in July against 83.3% in June.
Accident insurance premiums (AI) collected by LIC accelerated to a 172.6% dynamics in July 2023 compared to a 122.2% growth in June (all year-on-year). LICs collected 28.99 billion tenge in monetary terms making 11% of the total collections of LICs (9.2% in total LIC premiums in June). LIC Freedom Life remains the leader of the segment with a 11.7 billion tenge portfolio, which corresponds to 40.5% of the segment (in June, the segment share was 49.9%). Based on results of intense competition, LIC KM Life moved up to the second place from the third one. The company’s portfolio grew to 9.1 billion tenge, and the segment share to 31.4% (18% in June). LIC EIC moved down to the third position from the second one. The company’s portfolio increased to 5.1 billion tenge forming a 17.9% share in the segment (according to the results of June - 18.2%). All LICs showed a positive trend in premiums in monthly terms. The concentration of premiums in the segment, nevertheless, remains very high. The premiums of the three largest accident insurers among LICs increased to 89.8% in the segment, while their share in June was 86.1%.
As of end of July, 2023, the premiums in the sector "Insurance of an employee against accidents in the performance of their labor duties" (CAI) reduced the growth dynamics to 53.4% against an increase of 70.3% in June (all year-on-year). The LICs’ cash collections were over 51.4 billion tenge. The portfolio of premiums on CAI accounts for 19.5% in the total portfolio of LICs (19.4% in June).
According to the results of July, LIC Halyk life is still the segment leader with a 13.7 billion tenge portfolio, which is 26.6% of the segment (in June - 27.5% of the segment). LIC Nomad Life ranks second with a 12.28 billion tenge portfolio forming 23.9% of the segment (according to the results of June - 23.7%). The third place is taken by LIC KM Life. The company’s portfolio grew to 6.5 billion tenge, and the segment share was 12.7% (according to the results of June - 13.8%). The segment concentration continues to decline due to the monthly increase in premiums of all LICs. The share of the three largest LICs in the segment decreased to 63.2% in July against 64.9% in June.
The health insurance segment (VHI) by LIC increased the dynamics of fees in July to 35.4% against an increase of 17.5% in June (all year-on-year). The fees amounted to 2.86 billion tenge in absolute terms. The share of VHI premiums by LIC in total premiums was 1%. LIC EIC remains the segment leader. The company collected 1.7 billion tenge of premiums in July forming 61.1% of the share in the segment (according to the results of June - 61.6%). LIC Eurasia is the second. The company managed to collect 887.4 million tenge of premiums making a 31% share in the segment (according to the results of June - 28.7% of the segment). LIC Freedom Life is the third with a portfolio of 114.3 million tenge, its share in the segment is 4% against 4.8% in June. The share of the three largest VHI insurers among LICs grew to 96.1% against a share of 95.1% in June.
As of July 1, 2023, the regulatory assets of LICs built up by 23.5% in annual terms exceeding 1 trillion tenge. The insurance reserves increased by 14.4% exceeding 691.5 billion tenge (yoy). The LICs’ equity capital grew by 47.1% compared to the same period in 2022 and made 218.4 billion tenge.
