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Great year start

The total gross premiums of LICs including unit-linked sales increased by 149.4% to 33 billion tenge in annual terms in January 2023 against a decrease by 25.1% in January 2022. LIC Nomad Life is still the only company offering the Unit-linked investment life insurance product. The cumulative part of the insurance premium on this product in January 2022 amounted to 2.6 million tenge.
Great year start

As of January 1, the amount of assets of LIC Nomad Life was 263.4 billion tenge, equity capital - 22.3 billion tenge, insurance reserves - 203.8 billion tenge. The market share of LIC Nomad Life in the life insurance industry in January, including Unit-linked sales, formed 24.29% equal to 8 billion tenge.

The premiums in the Life Insurance class increased by 54.3% in annual terms in January against a 11.5% growth in January 2022. LICs collectively gathered 13.6 billion tenge in absolute terms (8.8 billion tenge in January last year) occupying 41.2% in the total portfolio of LICs against 39.8% in January 2022 and 28% in January 2021.

The leader in the life insurance segment changed in January 2023. LIC European Insurance Company (EIC) took the first place with 5.1 billion tenge of premiums.

The premium portfolio allowed the LIC to build up its share in the segment to 37.8% against 18.4% a year earlier. LIC Halyk life went down to the second place with 4.1 billion tenge of premiums forming 30.8% of the segment. LIC Nomad Life is the third with a 2.8 billion tenge portfolio and a 20.7% segment share. The share of the three largest LICs in the class grew to 89.3%.

Annuity insurance excluding retirement annuities increased by 45.8% to 353.2 million tenge in January 2023. Six out of seven LICs collecting premiums in this segment showed a positive trend in premiums, one demonstrated zero dynamics. According to the results of January 2023, the segment leader is KM Life with a 188.8 million tenge portfolio and a 53.4% segment share. The second largest portfolio in annuity insurance in the amount of 153.8 million tenge belongs to LIC Halyk life, it occupies 43.6% of this insurance segment. LIC Nomad Life with a 7.6 million tenge portfolio forms 2.2% of the segment. The share of the two largest LICs in the class is 97%.

The retirement annuity premiums increased by 59.5% to 8.9 billion tenge in January 2023 against a fall of 61% in January 2023 (all year-on-year). Of the seven LICs operating in the segment, only Standard Life showed a decrease in premiums. The share of retirement annuities in total LIC premiums is 27.2%. The share of the three largest LICs in the class grew from 73% to 80.9%. Based on the results of January 2023, the leader of the retirement annuity segment is LIC Nomad Life with 3 billion tenge of premiums and 34.1% segment share. LIC Halyk life with a portfolio of 2.9 billion tenge and a share in the segment of 33.3% is the second. The third position is occupied by LIC Freedom Life with a portfolio of 1.5 billion tenge and a share in the segment of 17.3%. The share of the three largest LICs in the class reaches 84.7%.

Accident insurance (AI) premiums collected by LICs increased by 784% in annual terms in January 2023 against a fall of 29.1% in January last year. All six LICs collecting AI premiums show a positive trend in premiums, and two of them are above the market. The total portfolio of LICs in the AI segment amounts to 4.5 billion tenge against 576 million in January 2022. The share of the AI segment in total LIC premiums grew to 13.6%. The leader in the AI segment changed in January 2023, it was KM Life with a portfolio of 2.2 billion tenge, which allowed it to build up its market share in the segment to 49.5%, from 2.4% in January last year. LIC Halyk life took the second place with a portfolio of 848.3 million tenge, equal to 18.8% share in the segment (18.6%share in January 2022). LIC EIC went down to the third place, from second. The company collected a portfolio of 732.5 million tenge, holding 16.2% in the segment (in January 2022 - 34.8% of the segment). The leader of 2022, LIC Freedom Life, with 622.8 million tenge portfolio and 13.8% market share left the top three largest LICs in the AI segment.

Premiums in the sector "Insurance of employee against accidents in the performance of their labor duties" (CAI) in January 2023 showed a dynamics of 114.9% against 16.2% (year-on-year) reaching 5.2 billion tenge. The share of premiums in the segment in the total fees of LICs amounted to 15.8%. LIC Nomad Life remains the leader of the CAI segment. In absolute terms, the company’s portfolio exceeded 2 billion tenge occupying 39.6% of the segment (according to the results of January 2022 - 26.3%). LIC Halyk life is the second with a 1.8 billion tenge portfolio, it forms 35.5% of the segment (in January 2022 - 17.6%). The third position is taken by LIC Freedom Life with a portfolio of 920.6 million tenge and a share in the segment of 17.6% (in January 2022 - 14.1%). LIC KM Life left the top three in the CAI with a 742.4 million tenge portfolio and a 14.2% market share.

Health insurance premiums (VHI) by LIC in January 2023 grew by 44% against an increase of 24.5% (all year-on-year). The premiums amounted to 345 million tenge in absolute terms. At the end of January, the segment leader changed. The first place was taken by LIC EIC with a 240.5 million tenge portfolio increasing its share in the segment to 69.7% (4.6% in January 2022). The VHI leader by LICs as of 2022, LIC KM Life, is the second. The company reduced the premium portfolio in the segment to 93.7 million tenge against 744.6 million tenge in January 2022. Therefore, its segment share dropped to 27.2% against 94.9% in January last year. LIC Eurasia is in the third place with a portfolio of premiums of 5.2 million tenge and 1.5% share in the VHI segment. As of January last year, LIC Eurasia did not have a VHI portfolio. The premiums of the three largest LICs in VHI insurance by LICs make 71.2% of this segment.

As of January 1, 2023, the total assets of LICs increased by 17.9% (yoy) and amounted to 919.5 billion tenge. Insurance reserves grew by 23%, exceeding 660.7 billion tenge. Equity capital of LICs built up by 21.8% (yoy) amounting to 73.6 billion tenge.

Photos are from open sources.

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