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The rating of Kazakhstani life insurance companies

Its authors are Forbes Kazakhstan with the assistance of KPMG in Kazakhstan and Central Asia. Forbes notes that this rating is a purely journalistic and expert assessment study and cannot be used as official information or a document.
The rating of Kazakhstani life insurance companies

Forbes Kazakhstan has made a rating of all 32 insurance organizations in Kazakhstan, 25 of which are general insurance and 7 are life insurance companies. However, the editors of Lifeinsurance.kz, in virtue of their specificity, represent to you the rating of LICs.

The rating is based on 9 indices, which are absolute and relative indicators of the financial condition of insurance companies, including:

• Growth rates: increase in net earned insurance premiums in relation to the previous year (8);

• Coverage ratio of insurance reserves (9).

• Performance indicators: return on equity (ROE) (1) and combined loss ratio (2);

• Absolute indices, such as assets (3), equity (4), net earned insurance premiums (5), net insurance payments (6) and net profit (7);

 

An individual ranking was calculated from 1 to 25 for each of the nine indices. Then, the synthetic score for each company was calculated as the sum of the indices of nine rankings. The final rating was ascending of this point, specifies forbes.kz. All data was obtained from the financial statements of companies or statistical data of the National Bank of Kazakhstan. The working period of companies for the last year, from January 1 to December 31, 2017 was analyzed.

 

Thus, according to Forbes Kazakhstan, the rating table in the Life Insurance segment on nine indicators was headed by JSC LIC Nomad Life, Halyk-Life, the subsidiary of Narodny Bank of Kazakhstan on life insurance, was the second, and JSC Life Insurance Company European Insurance Company was the third.

 

According to Forbes Kazakhstan, the volume of insurance premiums in life and annuity insurance in the country amounted to 99.5 billion tenge, which is 14% more compared to the previous year. This are 27% of the total premiums collected in the market.

 

The largest number of life insurance premiums in the amount of 16 billion tenge, were collected by JSC Halyk Life, the subsidiary of Narodny Bank of Kazakhstan. This is 153% more than 6.3 billion tenge a year earlier. The index of JSC LIC Nomad Life increased by 44% and amounted to 2.4 billion tenge compared to 1.7 billion tenge in 2016.

 

As noted by Forbes Kazakhstan, JSC LIC Nomad Life is the leader in terms of insurance premiums in retirement insurance with increase in 53%, from 8.2 billion to 12.5 billion tenge.

 

The non-incurred loss reserve for life insurance and reinsurance contracts for the year has increased by 9.9%, from 12.7 billion tenge to 13.9 billion.

 

In general, as of 2017, the payments in life insurance segment decreased by 11%, from 2.2 billion to 2 billion tenge. The largest decline was observed in JSC Life Insurance Company Kazkommerts-Life, from 1.3 billion to 937 million tenge, or by 28%, forbes.kz notes. However, according to the publication, despite the overall decline in life insurance payments, the JSC Halyk-Life, the subsidiary of Narodny Bank of Kazakhstan for life insurance, JSC LIC State Annuity Company, and JSC LIC Standard Life showed positive dynamics.

 

Rating of life insurance companies (Forbes Kazakhstan):

1. JSC LIC Nomad Life

A.M. Best: B-/Stable (24.08.2017)

Chairman of the Board: Kairat Chegebayev

Main portfolio share: retirement annuity, compulsory accident insurance for employees

At the 2017 year-end, it is the largest life insurance company with assets of 67 billion tenge, which is 20% more than in 2016. It also the first in terms of net profit, earning 5.3 billion tenge in 2017. ROE also showed the best result of 57.1%. The sole owner of the company is Almas Mynbayev (No. 50 of the richest businessmen of Forbes Kazakhstan - 2018).

 

2. JSC LIC Halyk Life (subsidiary of Narodny Bank of Kazakhstan)

A.M. Best: B+/revision (07. 09.2018)

Chairman of the Board: Oksana Radchenko

Main portfolio share: retirement annuity, compulsory accident insurance for employees

The company is the leader in equity capital - 10.8 billion tenge, which is 23% more compared to 2016. It is the fourth in net profit with 2 billion tenge, as well as in 2016.

 

3. JSC Life Insurance Company Kazkommerts-Life (subsidiary of JSC Kazkommertsbank)

Chairman of the Board: Vitaly Lyubimov

Main portfolio share: retirement annuity, compulsory accident insurance for employees

In August 2018, the company's shareholders announced the decision to merge the related company Kazkommerts-Life to Halyk-Life. The decision to merge is a consequence of the acquisition of Kazkommertsbank, the parent company of Kazkommerts-Life, by Halyk Bank, the founder of Halyk-Life. The regulatory approval was received in September; the completion of the accession procedure is planned for the beginning of 2019.

 

4. JSC LIC European Insurance Company

Chairman of the Board: Dmitry Nadirov

Main portfolio share: retirement annuity, compulsory accident insurance for employees

JSC Life Insurance Company European Insurance Company (previously worked under the Generali Life and PPF Insurance brands) is the official representative of Generali Employee Benefits Network (GEB), founded in 2006 and is the only foreign company in the life insurance market of Kazakhstan. At the 2017 year-end, it collected 14 billion tenge of insurance premiums, which is 12.2% less compared to 2016.

5. JSC LIC State Annuity Company

Chairman of the Board: Galym Amerkhodzhayev

Main portfolio share: retirement annuity, compulsory accident insurance for employees

The state annuity company was established in December, 2004 with 100% state participation in the charter capital in order to implement the Insurance Market Development Program in Kazakhstan as of 2004–2006 and enhance social reforms in Kazakhstan as of 2005–2007. The rights of possession and use belong to the Ministry of Labor and Social Protection of the Population of the Republic of Kazakhstan.

6. JSC LIC Standard Life

Fitch Ratings: B/Stable (13.03.2018)

Chairman of the Board: Yerzhan Konurbayev

Main portfolio share: retirement annuity, compulsory accident insurance for employees

In March 2018, Fitch Ratings assigned a rating “B” of financial strength to Standard Life with “Stable” forecast. In 2017, the Company collected 5.8 billion tenge of insurance premiums, which is 26% less than in 2016.

7. JSC LIC Asia Life

Fitch Ratings: In / Negative (05.10.2018)

Chairman of the Board: Azamat Yerdesov

Main portfolio share: retirement annuity, compulsory accident insurance for employees

This October, Fitch Ratings confirmed the level “B” of financial stability of JSC Life Insurance Company Asia Life with “Negative” forecast. The company is the smallest in terms of assets with 9.1 billion tenge. However, there has been an increase of 15% for the year. A large shareholder is Nurbol Sultan (No. 42 of the richest businessmen rating).

Source:

https://forbes.kz/leader/reyting_strahovyih_kompaniy_2018_1545216218/

https://forbes.kz/ranking/strahovyie_kompanii_po_obschemu_strahovaniyu_-_2018

Photos: anderidagroup.com

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