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LIC premiums are rushing into the positive zone

LICs have increased the collection of premiums and are ready to climb into positive territory by the end of the year
LIC premiums are rushing into the positive zone

At the end of September 2022, the total gross premiums of LICs reduced the fall in premiums to 1.2% against a decrease of 2.3% in August in annual terms. LICs collected 273.1 billion tenge in absolute terms and including the accumulative part of insurance premium on the Unit-linked product - 277.2 billion tenge. LIC Nomad Life remains the only life insurance company offering the Unit-linked investment life insurance product. The cumulative part of insurance premium on this product amounted to 4.1 billion tenge in September. At the beginning of October 2022, the market share of LIC Nomad Life in the life insurance industry was 23.4% including Unit-linked sales, which was equivalent to 64.9 billion tenge.

Collection of premiums in the "Life insurance" class increased to 6.9% in annual terms in September against the acceleration by 7.7% in annual terms in August. LICs collected 136.28 billion tenge in total. Life insurance premiums increased their share in the total portfolio of LICs to 49.1% (including the cumulative part of insurance premium on the Unit-linked product) among classes of insurance. According to the results of August, the share was 48.9% (according to the results of July - 50.9%) in the total portfolio. Out of nine LICs collecting premiums in this segment, two LICs showed a negative annual increase in premiums.

LIC Halyk life remains the leader of the Life insurance class. The company's portfolio in this segment increased to 56.9 billion tenge in September, but the market share fell to 41.8% against 42% in August. European Insurance Company (EIC) moved to the second place. The LIC attracted 32.2 billion tenge of premiums, which allowed it to form a 23.6% share in the segment. The third place is occupied by LIC Nomad Life. It collected 31.39 billion tenge of premiums and made 23% of the life insurance segment.

The dynamics of premiums in the Annuity Insurance class is strenuously trying to reduce the fall. As of end of September 2022, the negative dynamics amounted to 36.7% against the negative dynamics of 38.3% in August (all year-on-year). LICs collected more than 65 billion tenge in monetary terms in total. The share of annuity premiums in the total portfolio of LICs among insurance classes was 23.4% in September against 23.5% in August. Three out of eight LICs collecting premiums on the Annuity Insurance class showed a positive increase in premiums in annual terms.

The premiums in retirement annuity class reduced the dynamics of the fall to 40.6%in annual terms. The drop in premiums amounted to 42.3% in annual terms in August. LICs collected 57.96 billion tenge in monetary terms. Of the seven LICs collecting premiums in the retirement annuity segment, five showed a decrease in annual terms.

Leadership in the segments of annuity insurance and retirement annuities remains with LIC Nomad Life. At the end of September 2022, the company's portfolio of annuity insurance premiums grew to 20.7 billion tenge, including 19.8 billion tenge in the retirement annuity segment. The market share of LIC Nomad Life in the annuity insurance segment is 31.8%, including 34.1% in the retirement annuities segment. The second position in annuity insurance with a 18.7 billion tenge portfolio, including 16.2 billion tenge of retirement annuities is taken by LIC Halyk life. The LIC portfolio in total annuity insurance premiums, including retirement annuities, is 28.8% and 28.1%, respectively. LIC Freedom Life remains the third in the segment. The company’s portfolio of annuity insurance premiums increased to 13.6 billion tenge in September, including 12.5 billion tenge on retirement annuities. The market share of LIC Freedom Life in the annuity segment increased to 20.4%, and in retirement annuities - to 21.6%.

The dynamics of premiums in the Employer Liability Annuity (ELA) class slowed down in annual terms at the end of September 2022. Collection of premiums was higher by 14.1% than the same period last year. However, the annual dynamics of premium collection was stronger (17.4%) in August. LICs collected 4.2 billion tenge in total. LIC Halyk life remains the leader of the ELA segment with a 1.6 billion tenge portfolio. The LIC was able to build up its share in the segment to 38% in September against a 36.1% share in August. LIC Nomad Life is in the second place in the segment with a portfolio of 779.9 million tenge, which is 18.4% of the total premiums of the ELA segment. LIC KM Life went down to the third place in the ELA segment at the end of September. The LIC’s portfolio is 773.5 million tenge and makes 18.2% of the total premiums of the ELA segment. The share of LIC KM Life in the segment was 19.5% in August.

The “Other types of annuity insurance” segment continued to show excellent dynamics and grew by 89.9% in annual terms in September 2022 against an annual growth of 83.3% in August. LIC fees amounted to 2.8 billion tenge in monetary terms in total. LIC KM Life remains the segment leader. The company's portfolio in the segment was 1.29 billion tenge, and the market share in the segment grew to 45.3% against 44.6% in August. LIC Halyk life is the second with the portfolio of 853.7 million tenge, which allows it to increase its market share in the segment to 29.9% against a share of 29.2% in August. The third place is occupied by LIC Freedom Life, which collected 508.1 million tenge of premiums and formed a 17.8% share in the segment, while in August the share was 19.3%.

Accident insurance (AI) premiums collected by LICs in September 2022 reached 16.8 billion tenge. Collection dynamics significantly strengthened in the positive zone. The increase compared to the same period last year amounted to 27.7% against an annual increase of 8.6% in August. The segment leader LIC Freedom Life collected premiums in the amount of 5.6 billion tenge but reduced its share in the segment to 33.2% against 37.8% in August. The second position is occupied by LIC EIC with 4.1 billion tenge of premiums forming 24.5% in the segment (26.7% of the segment in August). LIC Halyk life remains the third largest insurer in the segment with a portfolio of 3.3 billion tenge and a 20% market share (according to the results of August -19.8%).

Premiums in the “Insurance of an employee against accidents in the performance of their labor duties” (CAI) class grew by 65.9% in annual terms at the end of September 2022, which was less than the annual increase by 67.6% at the end of August. LICs collected 51.7 billion tenge in monetary terms. LIC Halyk life retains leadership in the CAI segment. The LIC portfolio grew to 14.6 billion tenge in September, and its share in the segment increased to 28.3% against a 27.9% share in August. LIC Eurasia remains in the second place with a 11.9 billion tenge portfolio. The share of the LIC in the segment dropped to 23.1% from 23.5% in August. LIC Nomad Life is in the third place with a 16.3% market share, the company has collected 8.4 billion tenge of premiums.

The collection of premiums on health insurance (VHI) among LICs became the record holder among the segments of the Life Insurance industry in September 2022. The dynamics rose to 90.6% against an increase of 89.3% in August (yoy). The total portfolio of VHI premiums among LICs increased to 3.1 billion tenge. LIC KM Life remains the segment leader with a 1.9 billion tenge portfolio. The company's premiums grew by 41.6% in annual terms, the monthly increase was 1.4%. The September dynamics of premiums did not allow LIC to retain its share in the segment; it decreased to 62.2% against 66.6% in August. LIC EIC is the second; its portfolio of premiums exceeds 1.1 billion tenge. The growth allowed the LIC to build up its market share in the segment to 36% against 31.9% in August. LIC Freedom Life is the third in the segment among LICs. The company increased its premium portfolio in the segment to 31.7 million tenge and its market share to 1% in September (0.9% in August).

The total assets of LICs in annual terms maintained an increase of 24.5% and amounted to 886.2 billion tenge in September 2022. Insurance reserves grew by 27.7% in annual terms (retaining the annual dynamics of August) and amounted to 651.6 billion tenge. Equity capital of LICs increased by 12.8% against an increase of 13.6% in August (all year-on-year), to 155.5 billion tenge. The undistributed profit of LICs built up by 8.9% in annual terms in September against a 3.2% growth in August, to 34.73 billion tenge.

Photo is from open sources.

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