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Premiums have been given a boost

LICs have increased the dynamics of premiums for eight months of 2020.
Premiums have been given a boost

LICs continue to restore the dynamics of premium collection. In January-August 2020, LIC gross premiums increased by 10.1% (year-on-year) reaching 136.5 billion tenge. For comparison, in January-July 2020, LIC gross premiums increased by 6.2% in annual terms.

The life insurance sector has once again increased the premiums collected. In January-August 2020, the life insurance premiums in annual terms grew by 13.1% to 52.5 billion tenge.

LIC Halyk life still has the maximum portfolio of life insurance premiums. By results of eight months of 2020, it has reached 22.4 billion tenge, having lost 2% of premiums by the end of 2019. The dipping premiums affected the market share of LIC Halyk life in the life insurance sector: the share dropped to 42.7%.

LIC Nomad Life is the second in the life insurance sector in terms of portfolio size. The company continues showing the dynamics of premiums significantly higher than the market average. LIC Nomad Life has increased premiums by 95% having collected 15.7 billion tenge in annual terms in August. By results of eight months of 2020, the share of Nomad Life in total premiums on life insurance has grown to 30%.

LIC European Insurance Company (EIC) continues to hold the third position in the life insurance sector reducing its premiums though. The company's portfolio amounts to 10.5 billion tenge having lost 23.8% of the volume by the results of January-August 2019. As a result, the share of the EIC in total life insurance premiums among LICs has declined to 20.1%. We should note the high dynamics of premiums of LIC Standard Life, by 69.5% (year-on-year), up to 892.3 million tenge.

In January-August 2020, the total life insurance portfolio of LICs accounts for 38.5% of total LIC fees against 37.5% a year earlier.

According to the results of eight months of 2020, annuity insurance came out in positive territory showing an annual growth of 4.4%. For comparison, over seven months of 2020, the premiums in this insurance segment have decreased by 4.8% in annual terms.

The annuity insurance premiums amounted to 47.3 billion tenge in monetary terms. The share of annuity insurance in the total premiums of LICs was 34.61% against 36.5% in 2019.

Retirement annuities being a part of annuity insurance, showed an annual growth of 6.2% against a decline of 3.8% in January-July 2020. The total portfolio of LICs on retirement annuities amounts to 43.7 billion tenge and makes 32% in total premiums of LICs against 33.2% a year earlier.

The all-time leader in the retirement annuity segment and annuity insurance sector remains LIC Nomad Life. As of end of August 2020, the company's annuity insurance portfolio has amounted to 18 billion tenge making 38.1% of this segment.

The retirement annuity portfolio of LIC Nomad Life as of the same date has amounted to 17 billion tenge, which is 38.9% of the retirement annuity segment.

The second place in terms of portfolio volume belongs to LIC Halyk life. As of end of August 2020, the company collected 11.7 billion tenge of annuity insurance premiums (occupying 24.9% of this insurance segment) and 10.3 billion tenge of retirement annuities (making 23.6% of this segment).

LIC Standard Life ranks third among LICs in annuity insurance and retirement annuities. According to the results of eight months of 2020, the LIC's portfolio of annuity insurance amounted to 5.8 billion tenge accounting for 12.5% ​​of the total premiums of this segment. The retirement portfolio of LIC Standard Life annuities reached 5.7 billion tenge making 13.1% of the segment.

The employer liability annuities (ELA) class premiums for eight months of 2020 have lost 21.5% in dynamics by the end of 2019 making 2.59 billion tenge. According to the results of eight months of 2020, LIC Halyk life is a leader of the ELA class. The company's portfolio reached 817.4 million tenge occupying 31.5% of the ELA segment. The second place is taken by LIC Nomad Life with a portfolio of 744.6 million tenge, taking 28.7% of the ELA segment. LIC State Annuity Company (SAC) occupies the third place is occupied by with the portfolio of 241.5 million tenge, which is 9.3% of the ELA segment.

According to the results of eight months of 2020, the “Other types of annuity insurance” segment showed a growth in premiums by 16.2% in annual terms. The fees of LICs amounted to 984.2 million tenge. The collection of premiums in this segment is determined by LIC Halyk life, which has collected 613.3 million tenge of premiums increasing the market share in the segment to 62.3%, and LIC Nomad Life, which has attracted 259.8 million tenge and occupies 26.4% of the segment. The share of leading companies in the segment is 88.7%.

LIC KM Life is in the third place in the segment; it collected 63.4 million tenge of premiums and made, according to the results of eight months of 2020, 6.4% of the segment's share.

Accident insurance (AI) premiums collected by LICs continue to show progressive growth. For eight months of 2020, the total premiums of LICs in this segment have amounted to 8.99 billion tenge, 47.3% more than last year.

The maximum growth in premiums of 2345.1% (year-on-year) was shown by LIC Nomad Life, increasing its portfolio to 180.6 million tenge. LIC Freedom Finance Life had another impressive annual increase in premiums (448.6%). The company's portfolio exceeded 2 billion tenge and ranked third with a share of 22.4% in the AI segment in terms of LIC premiums.

The segment leader has changed again. According to the results of eight months of 2020, LIC Halyk life took the first place in terms of portfolio size. It collected 2.4 billion tenge of premiums and made 27.2% of the AI market among LICs. LIC KM Life moved down one position.

In January-August 2020, it has collected 2.02 billion tenge, which is equivalent to a 22.5% share in the segment. The share of LIC KM Life in the AI segment in terms of LIC premiums has been declining recently: by the end of January-June 2020, the company's share in the segment has reached 28.6%.

Health insurance (VHI) premiums among LICs for eight months of 2020 have increased by 6532.8%, to KZT 879 million in annual terms due to the activities of LIC KM Life. The company's portfolio is 852.7 million tenge and forms 97% of premiums in this segment. In January-August, the market share of LIC KM Life has slightly decreased. The remaining market share is shared by LIC Freedom Finance Life (1.28% of the segment), ESK (0.92%), LIC Standard Life (0.76%) and LIC Halyk life (0.04%).

The premiums in the sector "Insurance of the employee against accidents in the performance of his labor duties" (Compulsory Accident Insurance AI) for the first eight months of 2020 has increased in annual terms by 2.9%, to 26.7 billion tenge, which is worse than the results of seven months, when premiums have grown by 6.9% (yoy).

The largest portfolio of 6.7 billion tenge in CAI remains with the LIC Nomad Life, which has a 25.2% share in the total premiums under CAI. LIC Halyk life is in the second place with 6.3 billion tenge of premiums and forms 23.7% of the CAI market. The third position is held by LIC Eurasia, which has collected 4.2 billion tenge of premiums and occupies 16% of the CAI segment.

As of January-August 2020, the total assets of LICs grew by 43.5% (year-on-year) to KZT 553.9 billion. The insurance reserves amounted to 390.6 billion tenge, an increase of 24.3%. Equity capital of LICs grew by 70.5% (year-on-year) to KZT 103.8 billion.

Photos are from open sources.

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