In June, LICs tried their best and made money in annual terms. If, in January-May 2020 gross premiums fell by 1.2% against the results of 2019, then in January-June gross premiums increased by 6% compared to the same period in 2019. In monetary terms, the premiums for the 1st HY of the year amounted to 91.2 billion tenge.
The life insurance sector remains a stable driver of LIC premium growth. Over the six months of 2020, life insurance premiums in annual terms increased by 11.9% to 36.5 billion tenge.
LIC Halyk life has the maximum portfolio of life insurance premiums. At the end of six months of 2020, it amounted to 15.5 billion tenge showing almost zero growth of 0.2% (year-on-year). This did not prevent LIC Halyk life from getting a share of 42.4% in total life insurance premiums in the first half of the year.
LIC Nomad Life is in the second place. The annual dynamics of the company's premiums of 64.4% was stronger than the market and increased the portfolio to 10.5 billion tenge in June. As of end of the 1st HY of 2020, the share of Nomad Life in the total life insurance premiums amounted to 28.9%.
The third place belongs to LIC European Insurance Company (EIC). By the end of the 1st HY 2020, the EIC portfolio has decreased by 17.8% to 7.9 billion tenge and occupies 21.6% of total life insurance premiums. The dynamics of premiums of 42% up to 584.8 million tenge by LIC Standard Life should be noted, the growth of premiums was higher than the market. By the end of the 1st HY 2020, the aggregate life insurance portfolio of LIC accounts for 40% of the total LIC premiums against 37.9% a year earlier.
Annuity insurance has lost 10.7% of premiums in the 1st HY 2020 compared to the end of 2019, having collected 30.4 billion tenge. The fall reduced the market share of annuities in total LIC premiums to 33.4% from 39.6% a year earlier.
Retirement annuities being a part of annuity insurance fell by 9.8% in the first six months of 2020 against an increase of 224.4% a year earlier. The total LIC portfolio on retirement annuities amounted to 27.9 billion tenge.
LIC Nomad Life is still a leader of the retirement annuity segment and annuity insurance sector. By the end of June 2020, the portfolio of LICs on retirement annuities has amounted to 11.4 billion tenge, and accounts for 40.9% of this segment. The annuity insurance portfolio as of the same date makes 12.2 billion tenge and occupies 40.1% of the annuity insurance sector.
LIC Halyk life holds the second place in terms of portfolio volume; it has collected 6.6 billion tenge of premiums on retirement annuities taking 23.6% of this segment. The company’s portfolio in the annuity insurance sector amounts to 7.5 billion tenge and makes 24.6% of this insurance class.
LIC Standard Life increased its portfolio by 23.4% to 4.4 billion tenge, occupying 16% of the segment, the third place among LICs in retirement annuities.
In the 1st HY of the year the premiums in the "Employer Liability Annuities" (ELA) class dropped by 26.8% to the end of 2019 to 1.8 billion tenge. Only LIC Eurasia showed positive dynamics in premiums out of six LICs collecting ELA premiums. The company's portfolio is 185 million tenge and it occupies 10.5% of the ELA segment taking the fourth place.
According to the results of 6 months of 2020, LIC Nomad Life is the ELA leader with a portfolio of 519 million tenge, which is 28.8% of the ELA segment market. LIC Halyk life with a portfolio of 515.3 million tenge has moved down to the second place, it makes 28.6% of the ELA segment. The third place has been taken by LIC State Annuity Company (SAC) with a portfolio of 204 million tenge, which is 11.3% of the ELA segment.
The “Other types of annuity insurance” segment at the end of the six months of 2020 became the only segment in the annuity insurance class to show an increase in premiums. The LIC premiums grew by 5.1% to KZT 670.5 million. The dynamics of premiums in this segment is determined by LIC Halyk life, which has collected 391 million tenge of premiums and occupies 58.3% of the segment and LIC Nomad Life, which has attracted 232.2 million tenge and makes 34.6% of the segment. The third significant player is LIC Freedom Finance Life. The portfolio of this company in the six months of 2020 has amounted to 45.7 million tenge and occupies 6.8% of this segment.
In the 1st HY 2020, the accident insurance (AI) premiums collected by LICs amounted to 7 billion tenge showing an increase of 72.3% compared to the results of last year. For comparison, the LIC portfolio on AI grew by 19 % in the 1st HY 2019.
LIC Nomad Life showed the maximum growth in premiums of 2004.4% increasing the portfolio to 131.6 million tenge. The premiums of the LIC Freedom Finance Life increased by 535% (year-on-year) to KZT 1.4 billion. LIC Freedom Finance Life occupies 20% of the AI segment among LICs being one of the three largest LICs in the AI segment in the 1st HY 2020.
LIC KM Life, the segment leader, occupies 28.6% of the segment with a portfolio of 2 billion tenge. LIC Halyk life is in the second place with a share of 25.3 collecting 1.8 billion tenge of premiums. The three leaders collect 77.6% of AI premiums among LICs, against 94% for the same period in 2019.
In the first half of 2020, health insurance premiums (VHI) among LICs increased in annual terms by 7634.6%, to 661 million tenge. The portfolio of LIC KM Life makes 97.9% of the sector or 647.3 million tenge in absolute terms.
The premiums in the sector "Insurance of an employee against accidents in the performance of labor duties" (CAI) increased by 8.5% (year-on-year) to 18.4 billion tenge in the 1st HY 2020.
LIC Nomad Life remains a leader in CAI with the largest portfolio of 4.2 billion tenge, it takes 25.9% of total CAI premiums. LIC Halyk life is in second place, it has collected 3.4 billion tenge of premiums making 20.7% of the CAI market.
LIC Standard Life with a portfolio of 2.2 billion tenge and market share of 13.5% left the top three insurers in CAI in the 1st HY 2020. LIC KM Life took its place collecting 2.5 billion tenge, and its market share rose to 15.7%.
The process of reducing the concentration of premiums in the CAI sector continues. According to the results of the 1st HY 2020, the top three LICs in this insurance class collected 62.2% of premiums while a year ago the leaders accumulated 80.3% of total CAI premiums.
At the end of the 1st HY 2020, the total assets of LICs have increased by 41.5% (year-on-year) to 521 billion tenge exceeding half a trillion tenge. The insurance reserves amount to 368.3 billion tenge growing by 23.9%. The equity capital of LICs increased by 60.7% (year-on-year) to KZT 97 billion.