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Insurance is stepping up

LIC premiums exceeded 200 billion tenge in July
Insurance is stepping up

The total gross premiums of LICs are slowing down their decline: in July 2022, the decrease was 7.8% against a decrease of 11.6% in June (all year-on-year). LICs collected 197.4 billion tenge in monetary terms and with the accumulative part of the insurance premium on the Unit-linked product - 201.4 billion tenge. LIC Nomad Life remains the only life insurance company offering a Unit-linked investment life insurance product. The cumulative part of insurance premium on this product amounted to 4 billion tenge in July. As of early July 202, the market share of LIC Nomad Life in the life insurance industry, including Unit-linked sales, was 25.6%.

The dynamics of premiums in the Life Insurance class increased by 7.9% in annual terms in July against an annual dynamics decrease by 6.9% in June. In total, LICs collected 102.6 billion tenge of premiums. Life insurance premiums form 50.9% of the total portfolio of LICs (including the accumulative part of insurance premium on the Unit-linked product). Of the nine LICs collecting premiums in this segment, three LICs showed a negative annual increase in premiums (there were two such LICs in June).

LIC Halyk life is a leader of the Life Insurance class. It enhanced its premium portfolio to 42.3 billion tenge simultaneously increasing its segment market share to 41.2% (40.4% in June). The second position is occupied by LIC Nomad Life, its portfolio in this insurance segment has grown to 25.4 billion tenge, and the market share is 24.8%. LIC European Insurance Company (EIC) remains the third largest insurer in the life insurance segment. As a result of July, the company’s premiums increased to 22.5 billion tenge, and the market share in the segment grew to 22% against 20.8% in June.

The dynamics the Annuity Insurance class premiums remained in the negative territory at the end of July 2022. The collected premiums have been by 42.9% less than a year earlier, but the decline is slowing down. The premiums collected in June were less by 44.8% in annual terms. The total portfolio of LICs on annuity insurance is 48.5 billion tenge, having decreased to 24.1% in total premiums of LICs (the share as of June is 25.2%).

The premiums in the “Retirement annuities” class fell by 46.6% in annual terms (in June - by 48.7%, in May - by 53%), to 43.17 billion tenge. Based on results of July 2022, LIC Nomad Life is the segment leader of annuity insurance and retirement annuities. The company's portfolio on annuity insurance grew to 15.7 billion tenge of premiums, including 14.9 billion tenge in the retirement annuity segment. The market share of LIC Nomad Life in the segment of annuity insurance is 32.4%, including 34.7% in the retirement annuity segment.

LIC Halyk life is the second in annuity insurance with the portfolio of 14 billion tenge, including retirement annuity portfolio of 12.2 billion tenge. The company’s share in total premiums on annuity insurance, including retirement annuities, is 28.9% and 28.4%, respectively. LIC Freedom Life is the third in the segment. The company’s portfolio on annuity insurance premiums increased to 9.58 billion tenge in July, including 8.9 billion tenge on retirement annuities. The market share of the company in the annuity segment increased to 19.7%, and in pension annuities - to 20.7%. Of the eight LICs collecting premiums in the annuity insurance segment, six showed a decrease in fees in annual terms. A similar result was in June.

The premiums collected in the Employer's Liability Annuity (ELA) class increased by 0.7% year-on-year in July 2022 against an annual growth of 1.7% in June. LICs collected 2.97 billion tenge in total. LIC Halyk life remains the ELA segment leader with the portfolio exceeding 1 billion tenge. However, due to portfolio growth of other LICs, the market share of LIC Halyk life in the segment dropped to 35.7% against 37.5% in June. LIC Nomad Life has the second largest portfolio of 646.6 million tenge and the market share of 21.7%. LIC KM Life is still the third largest insurer in the ELA segment. The company has increased its premiums to 568.2 million tenge in July and occupies 19.1% (in June - 15.9%) in the total premiums of the ELA segment.

The “Other types of annuity insurance” segment grew by 94.5% in July 2022 compared to the same period in 2021 against the annual dynamics in June by 141.9%. The total premiums of LICs amounted to 2.4 billion tenge in monetary terms. LIC KM Life is the segment leader with the portfolio exceeding 1 billion tenge. The company’s market share in the segment increased to 42.6% against 40.9% in June. LIC Halyk life is the second with the portfolio of 718.9 million tenge and market share of 29.8%. LIC Freedom Life is the third having collected 503.2 million tenge of premiums and occupying 20.8% (in June - 22.4% of the segment).

Accident insurance premiums collected by LICs reduced their fall to 1% in July 2022 against a fall of 5.1% in June (all year-on-year). LICs collected 10.6 billion tenge in monetary terms. LIC Freedom Life remains the segment leader with the portfolio of 3.5 billion tenge having increased its segment share to 33.6% (in June - 31.6% in the segment). The second place is taken by LIC EIC with 2.8 billion tenge of premiums and a segment share of 26.8% (in June - 25% of the segment). LIC Halyk life is still the third with the portfolio of 2.3 billion tenge and market share of 21.9% (in June - 24.4%).

The premiums in the sector “Insurance of an employee against accidents in the performance of their labor duties” (CAI) increased by 49.9% in annual terms in July 2022 against an annual increase by 37.9% in June. In total, LICs collected 33.5 billion tenge. LIC KM Life is still the segment leader, the portfolio of which has grown to 7.2 billion tenge, while the market share in the segment has dropped to 21.7% (27% in June). LIC Eurasia moved up to second place with the portfolio of 6.9 billion tenge in July. The company’s share in the segment increased to 20.6% against 12.5% ​​in June.

Two LICs at once are in the third place with a market share of 18.8%. Halyk life collected 6.3 billion tenge of premiums and LIC Nomad Life gathered 6.29 billion tenge of premiums. Both companies are closing the list of the largest insurers in the CAI segment.

Health insurance premiums (VHI) among LICs showed the highest growth among the life insurance industry segments in annual terms in July 2022. Total fees grew by 142.9% compared to the same period last year (the annual increase in June was 22.9%). The total portfolio of VHI premiums among LICs rose to 2.1 billion tenge. LIC KM Life remains the segment leader with the portfolio of 1.36 billion tenge. The monthly increase in premiums is 1.5%, the annual growth is 89% (the dynamics in June were 0.2% and 88.5%, respectively). Weak dynamics of fees reduces the company’s market share in the segment. It decreased to 64.6% in July against 71.6% in June and 79.3% in May. LIC EIC is in the second place, which has built up its premium portfolio to 715.2 million tenge and the market share to 33.9% against 27.1% in June and against 19.6% in May. LIC Freedom Life occupies the third position in the segment among LICs. The company increased its premium portfolio in the segment to 21 million tenge in July and the market share to 1% against 0.9% in June and 0.6% in May.

The total assets of LICs accelerated their annual growth to 26.1% in July 2022 against an annual growth of 23.9% in June and exceeded 860 billion tenge. Insurance reserves increased by 26.3% in annual terms against an annual growth of 25.1% in June, and amounted to 622.1 billion tenge. The equity capital of LICs grew by 16.8% (yoy) against an increase of 17.7% (yoy) in June, to 150.5 billion tenge. LIC retained earnings raised to 25.9 billion tenge in July 2022.

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