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Not an easy start to the year

LICs reduced the dynamics of premiums for certain market segments in January 2022.
Not an easy start to the year

The total gross premiums of LICs in January 2022 decreased by 25.1% against an increase of 55.3% over the same period in 2021 to 21.1 billion tenge. The accumulative part of the insurance premium on the Unit-linked investment life insurance product in January 2022 amounted to 986.8 million tenge.

LIC Nomad Life became the leader in collecting premiums in January 2022, the company’s total portfolio as of year beginning amounted to 7.6 billion tenge, including unit-linked sales (the company is still the only offering this product).

As of early February 2022, the market share of LIC Nomad Life in the life insurance industry increased to 34.4%, including Unit-linked sales. The month of January 2022 was not easy for the insurance market, turbulence affected the entire financial market. The increase in premiums in the life insurance segment increased by 11.5% against the dynamics of 5.4% a year earlier. The fees amounted to 8.8 billion tenge in absolute terms making 39.8% in the total LIC portfolio (the share was 28% in January 2021).

The leader in the life insurance segment changed in January 2022. LIC Nomad Life took the first place. The company collected 3.28 billion tenge of premiums increasing fees by 13% (yoy), the result allowed the LIC to increase its share in the life insurance segment among LICs to 37.3%. LIC Halyk life moved down to the second position showing a negative (-1.1%) dynamics of premiums in annual terms. Its fees amounted to 2.7 billion tenge in absolute terms, the portfolio share decreased to 31.4% against 37.3% a year earlier. LIC European Insurance Company (EIC) remains the third largest insurer in the life insurance segment. At the end of January 2022, the LIC showed an increase in premiums by 10.9% against a decline in January 2021 collecting 1.6 billion tenge and forming the 18.4% market share in the life insurance segment.

According to the results of January 2022, annuity insurance turned out to be in the red in terms of premium collection. The decline was 57.1% against the growth of 46.6% over the same period in 2021. Only two LICs, KM Life and Centras Kommesk Life, showed positive dynamics. The total portfolio of LICs on annuity insurance amounted to 6.4 billion tenge forming 28.9% of the total LIC premiums. At the end of January 2021, annuities had a 52.9% share in total LIC premiums. The collection of premiums on retirement annuities amounted to 5.6 billion tenge showing a decline of 61% against an increase of 185.8% in January 2021.

Based on the results of January 2022, LIC Nomad Life remains the leader of the annuity insurance sector and retirement annuity segment. The company collected 2.1 billion tenge in annuity insurance premiums, including 1.95 billion tenge in the retirement annuity segment. LIC Nomad Life forms 33.1% of the annuity insurance segment and 34.6% of the retirement annuity segment.

The second largest portfolio in annuity insurance belongs to LIC Halyk life. The company collected 2 billion tenge of premiums on annuity insurance (31.5% of this insurance segment) and 1.7 billion tenge on retirement annuities (30.5% of this segment). LIC Freedom Finance Life took the third place in the annuity insurance and retirement annuity sector. It collected 760.8 million tenge in annuity insurance (11.9% market share) and 654.2 million tenge in retirement annuities (11.6% market share). LIC Eurasia, which collected 457.9 million tenge on annuities, left the top 3 insurers in annuity insurance.

In January 2022, the Employer Liability Annuities (ELA) premiums showed a positive trend of 24.6% against a 125.2% growth a year earlier. An important role in the premium growth was played by the dynamics of collections of LIC Eurasia (861.1%) and LIC Nomad Life (204.1%), which turned out to be higher than the market growth rate. LIC Halyk life was the third LIC that showed an increase in premiums (13.6%).

LIC Halyk life remains the leader of the ELA segment. The company collected 214.5 million tenge in January in annual terms, but reduced its share in the segment to 47.3% of the segment against 51.8% a year earlier. LIC Nomad Life was the second in January. The company's portfolio amounted to 149.69 million tenge and grew to 33% in the ELA segment against 13.5% a year earlier. The third position was taken by LIC Eurasia. The company collected 48 million tenge, which allowed it to occupy 10.7% of the ELA segment. LIC KM Life with a portfolio of 34.2 million tenge left the group of leaders.

The “Other types of annuity insurance” segment showed an increase in January 2022 against a decline a year earlier, moreover, the increase was the highest (168.1%) in relation to other market segments. All LICs operating in this segment contributed to the market growth. In January 2022, the segment premiums were collected by four LICs versus five a year earlier. The total fees amounted to 317.49 million tenge.

The largest portfolio of 110.2 million tenge was collected by LIC KM Life in January, which was on top in the segment with a share of 34.7%. LIC Freedom Finance Life moved up to the second place collected 106 million tenge and forming a 33.4% share in the segment (according to the results of January 2021, it occupied 0.1% of the segment). LIC Halyk life, the leader of the segment in January 2021, dropped to the third position with a portfolio of 85.4 million tenge and a 26.9% share (according to the results of January 2021 - 62% of premiums in the segment).

Accident insurance (IA) premiums collected among LICs fell by 29.1% compared to the results of January 2021. Three LICs showed positive dynamics in fees, and three more demonstrated negative dynamics. LICs collected 575.8 million tenge in total.

The segment leader changed in January 2022. LIC EIC collected 200.3 million tenge and made 34.8% of the segment against 23.4% a year earlier. LIC Freedom Finance Life holds the second position in the segment having collected 196.6 million tenge and forming 34.1% of the segment. LIC Halyk life went down to the third position with a portfolio of 107.2 million tenge occupying 18.6% of the segment against 26.2% a year earlier.

The premiums in the sector “Insurance of an employee against accidents in the performance of their labor duties” (CAI) in January 2022 demonstrated positive 15.2% dynamics against 2.3% (year-on-year) reaching 4.5 billion tenge. LIC Nomad Life remains the leader of the CAI segment. The LIC portfolio amounted to 1.19 billion tenge in absolute terms making 26.3% of the segment. LIC Halyk life with a portfolio of 801.6 million tenge is in the second place forming 17.6% of the segment. LIC KM Life is the third having collected 789.4 million tenge (17.4% of the segment), outplayed LIC Freedom Finance Life with a portfolio of 641.5 million tenge (14.1% in the segment).

Health insurance premiums (VHI) among LICs grew by 24.5% in January 2022 against an increase of 9.9% in January 2021. In January, the segment premiums were collected by five companies against six a year earlier. LIC KM Life remains the largest insurer. In January 2022, the company raised 744.6 million tenge and made 94.9% of the segment (98.7% in January 2021).

At the end of January 2022, the total assets of LICs increased by 27.5% (year-on-year) to 779.2 billion tenge. The insurance reserves grew by 26.3% exceeding 543 billion tenge. LICs’ equity increased by 19% (yoy) to 139.18 billion tenge.

Photos are from open sources.

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