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The equity of LICs in annual terms grew by 57.8%

A high amount of premiums in February supported the companies’ capitalization.
The equity of LICs in annual terms grew by 57.8%

The total gross premiums of LICs continued to show high (46.4%) growth dynamics in February 2020. The premiums were 33.3 billion tenge in absolute terms. Note that the number of LICs increased to eight and this fact had a positive effect on insurance fees.

Almost all segments demonstrated premium growth. The life insurance segment is a leader by a large margin: according to the results of February, LICs collected 14.8 billion tenge of premiums, which was 49.2% higher than the total for the same period in 2019. Halyk life owns the maximum life insurance premium portfolio of 6.2 billion tenge occupying 49.1% of the total life insurance premiums. Nonetheless, Freedom Finance Life showed the largest increase in premiums of 103.3% in this segment. In monetary terms, its premiums amounted to 167.1 million tenge.

LIC Standard Life is gaining a good pace. Its premium dynamics of 66.8% allowed collect 275.8 million tenge. LIC Nomad Life is in the third place in terms of premium dynamics. In February, the company's fees in the life insurance segment increased by 56.9% to 4 billion tenge and made it possible to occupy 27.3% of the life insurance segment. All LICs getting premiums in the life insurance segment showed a positive effect in February.

Annuity insurance and retirement annuities confirmed the status of the most dynamic segment of life insurance in February. The annuity insurance premiums increased by 52.4% to 10 billion tenge (year to year), and premiums on retirement annuities grew by 63.1% to 9.2 billion tenge.

Of the five LICs entering into annuity insurance contracts, three showed an increase in premium, and two showed an outflow. In retirement annuities two LICs increased premium collections, and two reduced them. LIC Nomad Life holds the largest portfolio in annuity insurance (3.6 billion tenge) and retirement annuities (3.3 billion tenge). The company’s premium dynamics in this segment is sustainably high. As of February 2020, LIC fees on annuity insurance increased by 153.3% (year-on-year), and retirement annuities - by 226.9% showing the best market dynamics in this segment. LIC Nomad Life makes 36.5% of the annuity insurance and 36.5% of retirement annuity segments.

Halyk life is in the second place in terms of premium dynamics and portfolio size. The annual increase in the LIC premiums amounted to 87.1% on annuity insurance, in absolute figures the LIC collected 2.6 billion tenge, and in retirement annuities the premiums made 136.1% collecting 2.3 billion tenge. As of February, the market share of LIC Halyk life in these segments amounted to 26.3% and 25.3%, respectively.

LIC Standard Life is in third place. The company collected 1.8 billion tenge in annuity insurance premiums and 1.7 billion tenge in retirement annuities last February. The premium dynamics of LICs in this segment remains negative (-44.4% for annuity insurance) and (-46.3% for retirement annuities, all year to year) since the year beginning. LIC Standard Life continues to occupy 18.1% of the annuity insurance segment and 18.9% of retirement annuities. The maximum increase in premiums (16,564.1%) in the annuity insurance segment following the results of February (year-on-year) was shown by LIC Freedom Finance Life. In absolute terms, the fees amounted to 1.3 billion tenge. Thus, the annuity portfolio of LICs exceeded a billion tenge for the first time, and the market share increased to 13.5%.

The premiums in the “Employer Liability Annuities” (ELA) class in February 2020 reduced the fall to 30.1% compared to February 2019, when they dropped by 49.7%. In absolute terms, the premiums amounted to 515.1 million tenge.

The share of ELA premiums in the total premiums of LICs increased to 1.5% from 0.08% in February, 2019. Of the five LICs operating in this segment, three had a decline in premiums, and two had an increase. LICs Freedom Finance Life (985.6%) and Standard Life (230.5%) demonstrated premium growth. Nomad Life with the portfolio of 188.4 million tenge, and Halyk life with the portfolio of 109.3 million tenge are still the largest players in the ELA segment. According to the results of February 2020, LIC Nomad Life takes 36.6% of the ELA segment, and LIC Halyk life - 21.2%. Both companies form 57.8% of the ELA segment. Freedom Finance Life is in the third place, its share in total ELA premiums have grown from 1.4% to 17.2% (year-on-year) as of February 2020.

The “Other types of annuity insurance” segment continued to grow positively in February 2020. LICs collected 308.1 million tenge against 131.5 million tenge in February 2019 increasing fees by 51.2%. Three companies have been collecting premiums in the segment since February. LIC State Annuity Company (SAC) got 739 million tenge of premiums taking 0.2% of the segment. LIC Halyk life remains the largest ELA player; its premiums have grown to 198.3 million tenge (market share 64.4%). LIC Nomad Life is in the second place; it has raised 109 million tenge occupying 35.4% of the ELA segment.

According to the results of February 2020, accident insurance premiums (AI) collected by LICs increased by 53.2% compared to February 2019 and amounted to 1.8 billion tenge. The share of such premiums in the overall portfolio of LICs increased to 5.5% against 4.8% a year earlier. Of the six LICs collecting premiums in AI, two showed a decrease in premiums, three - growth, one - zero dynamics.

LIC Halyk life has the maximum portfolio of 692.2 million tenge (premiums decreased by 1.8% compared to February 2019) in accident insurance among LIC premiums. European Insurance Company (EIC), the second major player in the segment, collected 608.6 million tenge increasing fees by 41.2%. According to the results of February, the best dynamics of premiums was shown by LIC Nomad Life (6 470.9% collecting 48 million tenge) and Freedom Finance Life (542.2% collecting 316.7 million tenge). LIC Halyk life occupies 37.7% of the AI segment, EIC - 33.2% among LICs. The two largest insurers still account for 70.9% of the segment; premiums are redistributed by the companies following them. As of calendar month (from January to February 2020), LIC Freedom Finance Life has increased its market share from 13.8% to 17.3%, while LIC Eurasia has reduced it from 12.6% to 8.7%.

The premiums on health insurance (VHI) among LICs continued to show significant dynamics and increased by 52,630.6% compared to last year to 621.1 million tenge in February 2020. LIC KM Life is a segment leader occupying 99.2% with a portfolio of 615.9 million tenge.

The premiums in the “Insurance of an employee against accidents in the performance of his labor duties” (CAI) segment in February 2020 showed an increase of 18.7% to 5.9 billion tenge. The premiums make 17.8% of total LIC premiums. In February, the segment leader changed. LIC Halyk life took the first place in terms of premiums. The portfolio amounted to 1.9 billion tenge with a negative dynamics of premiums of 1.4%, the portfolio share in the segment made 33%. Nomad Life moved to the second position. It collected 1.7 billion tenge of premiums showing an increase of 1.7% and occupying 29.9% of the CAI segment.

LIC Standard Life remains the third largest insurer in the CAI segment. The Company collected 824.8 million tenge of premiums with a negative trend of 5.6% (year-on-year), which, however, did not prevent the LIC from increasing its market share to 13.9%.

The concentration of premiums in the CAI sector continues to reduce. Three largest insurers collected 76.8% of total premiums in February.

According to the results of February 2020, the total assets of LICs made 482 billion tenge showing an increase of 45.5%. The insurance reserves increased by 28.4% to 347.2 billion tenge. The equity of LICs grew by 57.8% (year-on-year) to 80.9 billion tenge.

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