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Insurance is on the rise

LIC premiums exceeded 100 billion tenge in April
Insurance is on the rise

The total gross premiums of LICs including unit-linked sales in annual terms in April 2023 actually repeated the March growth dynamics. Premiums increased by 26.8%, to 134 billion tenge, against a 25.4% increase in March (all year-on-year). The growth of insurance portfolio could have been higher. However, life insurance premiums showed a decline.

LIC Nomad Life continues to be the only LIC offering a Unit-linked investment life insurance product. As of beginning of April, the assets of LIC Nomad Life amounted to 260.9 billion tenge, equity capital - 28.2 billion tenge, insurance reserves - 204.2 billion tenge. As of May 1, 2023, the market share of LIC Nomad Life in the life insurance industry, including Unit-linked sales, forms 23.5%, which corresponds to a 31.5 billion tenge insurance portfolio.

The premiums in the "Life insurance" class reduced to 4.7% negative dynamics in annual terms in April against a fall of 10.6% in March. LICs collected 53.8 billion tenge in monetary terms. However, the share of life insurance premiums in the total LIC portfolio increased to 40.1% against 38.4% in March. According to the results of April, LIC Halyk life retains a leading position in the segment with a 23.8 billion tenge portfolio, which corresponds to a 44.3% share in the segment (38.7% in March). LIC Nomad Life is the second. The company collected 11.5 billion tenge of premiums equal to a 21.5% share of the segment. LIC European Insurance Company (EIC) is the third with a 9.8 billion tenge portfolio and a 18.3% market share in the segment. The premium concentration of the three largest LICs in the segment is 84% against 84.2% in March. Four out of 9 LICs collecting life insurance premiums showed an increase in premiums in annual terms and 8 showed growth compared to the previous month.

The volume of premiums on SESS built up to 16.6 million tenge in April, showing an increase of 73.3% against the results of March (in March, the increase against February was 410.6%). Four LICs continue to collected premiums. LIC Halyk life took a lead in April with a 8.3 million tenge portfolio, which corresponds to a 50.3% share of the segment (30.3% of the segment in March). LIC Freedom Life went down to the second place with a 6.4 million tenge portfolio (38.8% of the segment). The company occupied 51.9% of the segment in March. LIC Nomad Life is in the third place with a 1.3 million tenge portfolio or 8.2% of the segment.

Annuity insurance, excluding retirement annuities, increased by 46.5% in April 2023 against a 44.9% growth in March (all year on year). The volume of premiums in monetary terms increased to 1.6 billion tenge. LIC KM Life remains the leader of the segment, the portfolio of which has grown to 1.1 billion tenge, which corresponds to a 68.6% share in the segment (in March - 62.4% of the segment's share). LIC Halyk life is second with a volume of premiums of 474.7 million tenge equal to 28.8% in the segment (in March - 34.8% of the segment). LIC Nomad Life is third with a 30.7 million tenge portfolio or 1.9% in the segment (1.8% of the segment in March). The share of the three largest LICs in the segment reached 99.2%.

The portfolio of retirement annuity premiums in annual terms grew by 57.3% in April 2023 against an annual increase of 67.6% in March and exceeded 37.3 billion tenge. The share of retirement annuities in total LIC premiums decreased to 27.9% against 30.6% in March. LIC Nomad Life remains the leader in the retirement annuity segment with premiums of 12.79 billion tenge, equal to a 34.2% share in the segment (33.5% in March). LIC Halyk life is in the second place with a 10.6 billion tenge portfolio and a 28.5% segment share, which has not increased in April. The third position is taken by LIC Freedom Life with a 7.1 billion tenge portfolio equal to a 19.1% segment share (19.5% in March). The concentration of the three largest LICs in the segment was 81.8% in April against 81.5% in March.

Accident insurance (AI) premiums collected by LICs grew by 197.7% in annual terms in April 2023, to 13.7 billion tenge against an annual increase of 204.4% in March. LIC Freedom Life is still leading with a 6.49 billion tenge portfolio, which corresponds to a 47.4% share in the segment (45.9% in March).

KM Life remains the second with a 2.7 billion tenge portfolio, which is 19.9% of participation in the segment. The company’s share in the segment is gradually decreasing. In March it was 23.7%, in January - 49.5%. LIC EIC id in the third place with a portfolio of 2.5 billion tenge - 18.4% of the segment against 16.5% in March. The three largest accident insurers by LICs reduced their participation in the segment to 85.6%, from 86.1% in March.

The premiums in the sector "Insurance of an employee against accidents in the performance of their labor duties" (CAI) grew by 64.7% in April 2023 against an increase of 64.8% in March (all year-on-year). Cash collections of LICs amounted to 25.9 billion tenge. According to the results of April, LIC Halyk life remains the segment leader with a portfolio of 8.3 billion tenge, and a 32.1% segment share (39.2% in March). LIC Nomad Life is in the second place with a portfolio of 6.9 billion tenge or 26.8% of the segment (26.3% in March). The third place is taken by KM Life with a 3.3 billion tenge portfolio, which is a 12.9% share in the segment. LIC Freedom Life with a 2.49 billion tenge portfolio and a 9.6% share in the segment occupied the 4th place in April. Five LICs out of 8 that collecting premiums under CAI showed an annual increase in premiums. The segment is declining. The share of the three largest LICs in the class is 71.8% against 76.2% in March.

Health insurance premiums (VHI) by LIC in annual terms showed a drop of 5% in April 2023 against a fall of 31.5% in March. The fees amounted to 1.5 billion tenge in absolute terms. The leader of the segment, LIC EIC, strengthened its position in April collecting over 1 billion tenge of premiums and occupying 72.4% of the segment share (84.9% in March). LIC Eurasia moved up to the second position with a portfolio of 246 million tenge. The company occupies 16.2% of the segment against 0.3% in March. LIC Freedom Life remains in the third position with a portfolio of 95.1 million tenge and a share in the segment of 6.3% (7.1% in March). LIC KM Life with a portfolio equal to 4.8% of the segment left the top three. The share of the three largest VHI insurers by LIC is smearing out and forms 94.8% at the beginning of May against 99.3% in March.

As of April 1, 2023, the total assets of LICs 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 rose by 56.9% compared to the same period in 2022 and amounted to 211.3 billion tenge.

 

 

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