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Acceleration of premiums

The dynamics of LIC premiums in March turned out to be higher than in February
Acceleration of premiums

The increase in total gross LIC premiums, including unit-linked sales accelerated by 62% in March 2024 in annual terms against the annual February growth of 54.3%. In monthly terms, the premiums increased by 49.5%. The total LIC fees amounted to 159.3 billion tenge (a year earlier - 98.3 billion tenge).

The premiums for the Life Insurance class in annual terms increased by 41.3% in March 2024 against an annual growth of 45.9% in February. In total, LICs collected 53.4 billion tenge (a year ago – 37.8 billion tenge). The share of life insurance premiums in the total LIC portfolio continues to decline. At the end of March, it decreased to 33.5% compared to 38.4% a year earlier. LIC Halyk life remains the leader in the life insurance segment with a portfolio of 22.3 billion tenge. The market share of the company in the segment is 41.7% versus 39.9% in February (in March 2023 – 38.7%). LIC Nomad Life is in the second place with a volume of premiums of 13.1 billion tenge. The company’s segment share is 24.6% versus 27.5% in February (in March 2023 – 22.8%). LIC Freedom Finance Life is the third with a 8.4 billion tenge portfolio of premiums. The premium portfolio of LIC Freedom Finance Life makes 15.7% in the segment against 15.3% in February (in March 2023 - 8.3%). Of the 8 LICs collecting premiums in the life insurance segment, one LIC showed a decline in premiums in annual terms. The share of the three largest LICs in the segment dropped to 82% in March compared to 84.2% a year earlier.

The premium fees in the class “life insurance within the framework of the state educational savings system” (SESS) increased to 71.6 million tenge in March (9.6 million tenge a year earlier). In annual terms, the rate of premium collection slowed down to 645.6% against the February growth of 1604.8% (all year on year). At the end of March, the leader of the segment with a portfolio of 21.4 million tenge, which corresponds to the segment share of 29.9% is LIC Eurasia. The company’s share in the segment was 22.9% in February, 3.6% - in March 2023. In annual terms, the premiums of LIC Eurasia enhance by 6033.1% in monthly terms - by 5239.8%. LIC Nomad Life is the second with 16.4 million tenge. In annual terms, the company’s premiums increased by 1109.7%, month-on-month - by 35.2%. The share of LIC Nomad Life in total fees under the SESS class is 22.9% versus 37.9% in February (14.1% in March 2023). LIC Freedom Finance Life remains in the third position with a portfolio of 16.1 million tenge. The company’s share in the segment is 22.6% versus 27.2% in February (51.9% in March 2023). At the end of March 2024, the fees of the top 3 LICs in the segment reduced to 75.5% against 80.1% in February. In March 2023, the share of the top 3 in SESS premiums was 96.3%.

Annuity insurance excluding retirement annuities showed an increase in premiums by 31.2% in March 2024 against a February growth of 47.1% (all year-on-year). LICs collected 1.5 billion tenge (a year ago – 1.1 billion tenge) in monetary terms. LIC KM Life keeps its leading position in the segment with a 1.1 billion tenge portfolio, which corresponds to a 75.3% share in the segment against 71.2% in February (in March 2023 – 62.4%). LIC Halyk life is in the second place with a 298.8 million tenge portfolio. The company’s share in the segment is 19.4% versus 22.7% in February (in March 2023 – 34.8%). LIC Standard Life with a 37.3 million tenge portfolio occupies third position in the segment. The portfolio forms 2.4% of the segment versus 3.1% at the end of February (there was no portfolio of premiums in this segment in March 2023). The share of the three largest LICs in the class is 97.1% versus 99% a year earlier.

The dynamics of retirement annuity premiums enhanced to 77% in March 2024 in annual terms against an increase of 60.9% in February (all year-on-year). Together, LICs collected 53.3 billion tenge (a year ago 30.1 billion tenge). The share of retirement annuities in total LIC premiums grew to 33.4% at the end of March against 30.6% a year earlier. LIC Halyk life is still leading in the retirement annuity segment with a portfolio of 18.6 billion tenge. The company’s share in the segment increased to 34.9% against 34.3% in February (in March 2023 – 28.5%). LIC Nomad Life is in the second place with a volume of premiums of 15.7 billion tenge. The company’s share in the segment enhanced to 29.5% against 28.6% in February (in March 2023 – 33.5%). The third position is occupied by LIC Freedom Life with a 10.8 billion tenge portfolio. The company’s share in the segment decreased to 20.4% against 21.6% in February (in March 2023 – 19.5%). The share of the three largest LICs in the class reached 84.8% versus 81.5% a year earlier.

Accident insurance premiums collected by LICs in March 2024 accelerated in annual terms by 56.9% against an annual increase of 40.9% in February and exceeded 17 billion tenge (10.8 billion tenge in the year previously). The share of the AI segment in total LIC fees was 10.7% versus 11% a year earlier. LIC Freedom Finance Life remains the leader in the AI segment with a portfolio of 11.6 billion tenge. The company’s share in the segment was 68% versus 62% in February (in March 2023 – 45.9%). KM Life is in the second place with a portfolio of 2.7 billion tenge. The segment share of the company is 15.9 versus 22.6% in February (in March 2023 – 23.7%). The third place is taken by European Insurance Company (EIC) with a 2 billion tenge portfolio. The company’s share in the segment increased to 12% against 10.9% in February (16.5% in March 2023). The premiums of the three largest LICs in the AI segment form 95.9% of the segment (a year earlier – 86.1%).

The dynamics of premiums in the sector “Insurance of an employee against accidents during the performance of work duties” (CAI) increased by 86% based on the results of March 2024 against the February growth of 87.1% (all year-over-year). LICs collected 32.2 billion tenge (17.3 billion tenge a year ago) in total. The share of CAI premiums in total LIC fees was 20% versus 17.6% a year earlier. LIC Halyk life is the leader of the segment with a 13.1 billion tenge portfolio or 40.8% of the segment against 44.9% in February (in March 2023 - 39.2%). LIC Nomad Life is the second with a portfolio of 7.9 billion tenge, which corresponds to a 24.5% share in the segment against 26.3% in February (in March 2023 - 26.3%). LIC Eurasia is the third with a portfolio of 4.4 billion tenge. The company’s share in the segment built up to 13.7% against 11.6% in February (in March 2023 – 3.3%). The premiums of the three largest LICs form 79% (76.2% a year earlier).

Health insurance premiums (VHI) by LIC accelerated by 68.3% in March 2024 against an increase of 50.3% in February (all year-on-year), to 1.66 billion tenge (992 million a year earlier). LIC EIC retains its leading position with a 971 million tenge portfolio, which is 58.1% of the segment against 56.5% in February (84.9% a year earlier). LIC Eurasia with a portfolio of 407.9 million tenge is in the second place. The company’s share in the segment grew to 24.4% against 23.5% in February (0.3% in March 2023). LIC Nomad Life is in the third place with a portfolio of 188.1 million tenge or 11.3% of the segment against 12% in February. The premiums of the top 3 LICs for voluntary health insurance by LIC are 93.8% versus 99.3% a year earlier.

As of April 1, 2024, the total assets of LICs reached 1,187 billion tenge, insurance reserves increased to 827.2 billion tenge, and equity capital built up to 265.2 billion tenge.

 

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