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