In March 2018, the assets of insurance companies totaled 946.1 billion Tenge, which is 6.9% more than a year ago. The insurers have increased their assets by 12.2 billion Tenge since the beginning of the year.
Insurance reserves amounted to 478.1 billion Tenge (429.4 billion Tenge in previous year). Equity capital of insurance organizations has also increased, amounting to 420.5 billion Tenge, which is 10 billion Tenge more than in March, 2017.
Over the last 5 years (2013-2018), insurance companies increased assets by 95.7%, insurance premiums by 136.9% and equity by 69.4%.
TOP-5 of the largest insurance companies out of 32 operating in the Kazakhstani market concentrated 54.7% of all assets, or 517.1 billion Tenge. The top five companies in terms of asset size included 3 life insurance companies.
The leaders in the annual growth of assets were companies with a share from 1.9% to 7.3%.
The maximum increase in assets as of March 2018 was recorded with “Kommesk-Omir”. The assets of the insurance company increased by 30.2%, up to 17.7 billion Tenge vs.13.6 billion Tenge a year earlier.
Next is "Halyk Life" with a growth of assets by 28.5%, up to 66.5 billion Tenge (a year earlier it was 51.8 billion Tenge).
In third place is "Tsesna-Garant", which assets increased by 25.7%, amounting to KZT 13.9 billion (a year earlier it was KZT 11 billion).
In the fourth place is "INTERTECH" with asset growth by 24.1%, from 5.9 to 7.3 billion Tenge.
"NOMAD LIFE" hits rock bottom of TOP-5, the assets of the company increased by 23.2%, from 56.2 to 69.2 billion Tenge.
The net amount of insurance premiums has been growing from year to year for the past four years. During this period (2014-2018) insurance premiums increased by 60.2%, from 47.3 to 75.8 billion Tenge.
However, the expenses on insurance benefits have been declining for the second year in a row, from 20.1 in March, 2016 to 18.2 billion Tenge as of March, 2018, which indicates a decrease in the number of insurance events. As a result, the ratio of insurance benefits to premiums is also declining and now is at the level of 24.1%, vs. 28.6% a year earlier and 33.5% in March, 2016.
By March, 2018 insurance companies recorded the net profit of KZT12.7 billion, which is 11 times higher than the value of the previous year (KZT1.1 billion).
Despite the systematic growth of assets and insurance premiums, the profits of insurers are quite volatile. For example, the low indicators as of March 2017 were preceded by very high indicators as of 2016, when the net profit in March amounted to 21.7 billion Tenge.
Photo per website: medium.com