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Fees are picking up pace

LIC premiums approached 100 billion tenge in March 2023
Fees are picking up pace

The total gross premiums of LICs, including unit-linked sales, grew by 25.4% in annual terms in March 2023, to 98.3 billion tenge. The dynamics of premiums are declining. LICs showed an increase in premiums in annual terms In February by 44.9%, in January - by 149.4%. LIC Nomad Life continues to be the only LIC offering a Unit-linked investment life insurance product. The cumulative part of insurance premium on this product amounted to 36.9 million tenge in March 2023. As of early April, the assets of LIC Nomad Life were 260.9 billion tenge, equity capital - 28.2 billion tenge, insurance reserves - 204.2 billion tenge. The market share of LIC Nomad Life in the life insurance industry, including Unit-linked sales, was 23.8% in March, equal to insurance portfolio of 23.4 billion tenge.

The premiums in the Life Insurance class in annual terms increased the negative dynamics to 10.6% in March against a fall of 2% in February. LICs collected 37.8 billion tenge in monetary terms. Life insurance premiums account for 38.4% of the total insurance portfolio of LICs. The share of life insurance premiums in total LIC premiums was 35.9% in February. According to the results of March, LIC Halyk life holds leading positions. The portfolio of LIC premiums in the class has grown to 14.6 billion tenge and occupies 38.7% in the segment. LIC Nomad Life moved one step up to the second place. The company collected 8.6 billion tenge of premiums, and formed a 22.8% segment share. LIC European Insurance Company (EIC) went down to the third place. The company’s premiums amounted to 8.59 billion tenge and its share in the segment was 22.7%.  

The premium concentration of the three largest LICs in the class is gradually declining. In March, the top three LICs collected 84.2% of premiums, while in February their participation was 85.1%, in January - 89.3%. Of the 9 LICs collecting life insurance premiums, 4 showed an increase in premiums in annual terms.

The volume of premiums on SESS increased to 9.6 million tenge in March showing an increase of 410.6% compared to February. |The premiums were collected by four LICs, while in February 3 companies started in the segment. According to March results, LIC Freedom Life is the leader of the segment having collected 4.9 million tenge (51.9% of the segment). LIC Halyk life with a 2.9 million tenge portfolio (30.3% of the segment) went down to second place. LIC Nomad Life with a 1.3 million tenge portfolio (14.1% of the segment) entered the top three largest LICs on SESS. LIC Eurasia with the segment share of 3.6% left the top three leaders of SESS.

 

Annuity insurance, excluding retirement annuities, grew by 44.9% in March 2023 against a 116.3% increase in February (all year on year). In monetary terms, the volume of premiums dropped to 1.1 billion tenge from 2 billion tenge in February, as the collection of premiums in March fell by 42.4% compared to February. In March, LIC KM Life became the segment leader with a portfolio of 733.1 million tenge (a 62.4% segment's share). LIC Halyk life moved up to the second place with 408.7 million tenge of premiums (34.8% of the segment). LIC Nomad Life with a 21.6 million tenge portfolio (1.8% of the segment) entered the top three. The former leader, LIC Centras Kommesk Life, zeroed out the portfolio on this type of insurance. The share of the three largest LICs in the segment is 99%.

The portfolio of retirement annuity premiums grew by 67.6% in annual terms in March 2023 and exceeded 30 billion tenge. The share of retirement annuities in total LIC premiums increased to 30.6%. LIC Nomad Life is still leading in the retirement annuity segment with premiums of 10 billion tenge or a 33.5% segment share. LIC Halyk life is the second with a 8.5 billion tenge portfolio and a 28.5% share in the segment. The third position is occupied by LIC Freedom Life with a 5.8 billion tenge portfolio equal to a 19.5% segment share. The concentration of the three largest LICs in the segment in March reduced to 81.5% from 87.4% in February.

Accident insurance premiums collected by LIC in March 2023 increased by 204.4% year-on-year to 10.8 billion tenge, while in February the growth was 482.7% year-on-year. According to the results of March, LIC Freedom Life strengthened its leading position in the segment collecting 4.9 billion tenge of premiums equal to a 45.9% share, while in January of this year, the company’s share was 13.8%. KM Life remains the second with a portfolio of 2.5 billion tenge (23.7% of the segment against 49.5% in January). LIC EIC is in the third place with a 1.7 billion tenge portfolio (16.5% of the segment against 16.2% in January). The top three AI insurers by LIC make 86.1% of the segment.

The premiums in the sector "Insurance of an employee against accidents in the performance of their labor duties" (CAI) built up by 64.8% in March 2023 against an increase of 71.2% in February (all year-on-year). LIC fees amounted to 17.3 billion tenge. According to the results of March, LIC Halyk life became a segment leader with a 6.8 billion tenge portfolio and formed a 39.2% segment share. LIC Nomad Life moved to the second place with a 4.5 billion tenge portfolio and 26.3% segment share. LIC Freedom Life remains the third largest insurer in the segment with a portfolio of 1.8 billion tenge and a share of 10.7%. The share of the top three LICs in the class fell to 76.2% from 81.8% in February.

Health insurance premiums (VHI) among LICs dropped by 31.5% in March 2023 against a decrease of 45.6% in February (all year-on-year). The premiums amounted to 992.2 million tenge in absolute terms. LIC EIC remains a segment leader with 842.6 million tenge portfolio having increased its share in the segment to 84.9% from 81.1% in February. LIC KM Life is in the second place with a portfolio of 72.5 million tenge and segment share of 7.3% (9.9% in February and 27.2% in January). The third place is taken by LIC Freedom Life with a portfolio of 70.3 million tenge and segment share of 7.1% (8.4% in February and 1% in January). The top three VHI insurers among LICs form 99.3% of the segment.

As of April 1, 2023, the total LIC assets increased by 24.3% (yoy) to 963.8 billion tenge. The insurance reserves grew by 16.4% exceeding 665.5 billion tenge. The equity capital of LICs built up by 56.9% compared to the same period in 2022 and was 211.3 billion tenge.

Photos are from open sources.

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