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Life insurance grows in premiums

LICs maintain positive monthly dynamics of fees.
Life insurance grows in premiums

At the end of May 2022, the total gross premiums of LICs in annual terms decreased by 14.3% compared to the same period in 2021. Nevertheless, the monthly increase in premiums remains high: compared to April 2022, LIC premiums have grown by 22.8%. In monetary terms, the premiums amounted to 129.7 billion tenge, and with the accumulative part of the insurance premium on the Unit-linked product - 133.7 billion tenge.

LIC Nomad Life remains the only life insurance company offering a Unit-linked investment life insurance product. The accumulative part of the insurance premium for this product in April increased to 4 billion tenge. According to the data of the National Bank of the Republic of Kazakhstan, at the end of May 2022, LIC Nomad Life, taking into account unit-linked sales, is leading among LICs in terms of profit (4.27 billion tenge), as well as premiums in the Annuity Insurance class, including the Retirement annuity class.

The dynamics of premiums in the life insurance class amounted to 10.7% in May in annual terms against the annual dynamics of 18.1% in April. LICs collected 69.17 billion tenge, the premium share in the life insurance segment was 51.7% in the total portfolio of LICs (including the accumulative part of the insurance premium on Unit-linked product). Out of nine LICs collecting premiums in this segment, only one showed a negative annual increase in premiums.

LIC Halyk life is a leader of the Life Insurance class. It raised 27.96 billion tenge and increased its share in the segment to 40.4%. The second position is occupied by LIC Nomad Life, its portfolio in this insurance segment is 20.54 billion tenge and the market share is 29.7%. LIC European Insurance Company (EIC) remains the third largest insurer in the life insurance segment. At the end of May, LIC premiums grew to 10.7 billion tenge, which increased the segment market share to 15.5%.

According to the results of May 2022, the premiums in the Annuity Insurance class dropped by 48.8% in annual terms slowing down the fall compared to April 2022, when premiums fell by 50.2% in annual terms. Of the eight LICs operating in this segment, six showed a negative trend in premium collection. The total LIC portfolio on annuity insurance amounted to 33.2 billion tenge accounting for 24.85% of the total LIC premiums. Retirement annuity premiums fell by 53% year-on-year which was less than year-on-year drop in April by 54.7%. The fees amounted to 29.16 billion tenge in absolute terms. Based on the results of May 2022, LIC Nomad Life is still a leader in the segments of annuity insurance and retirement annuities. The company's premium portfolio on annuity insurance is 10.85 billion tenge of premiums, including 10.17 billion tenge in the retirement annuity segment. The market share of LIC Nomad Life in the annuity insurance segment is 32.6%, including 34.9% in the pension annuity segment. The second largest portfolio in annuity insurance in the amount of 9.65 billion tenge, including retirement annuities of 8.3 billion tenge, belongs to LIC Halyk life. The company forms 29.1% of the annuity insurance segment, including 28.5% in the retirement annuities segment. LIC Freedom Finance Life is the third. Its premium portfolio amounts to 6.2 billion tenge in the annuity insurance segment, including 5.64 billion tenge on retirement annuities. The result allowed the LIC to increase its market share in the annuity segment to 18.7%, and grow its share in retirement annuities to 19.4%.

The premiums in the Employer's Liability Annuities (ELA) class increased by 7.1% in annual terms at the end of May 2022, however, the growth rate was lower than the April results of 12.1%. LICs collected 2.3 billion tenge in total. LIC Halyk life remains the leader of the ELA segment with a portfolio of 809.4 million tenge occupying 35% of this segment.

The second largest portfolio of 579.79 million tenge with a market share of 25.1% is held by LIC Nomad Life. LIC KM Life remains the third major insurer in the ELA segment. The company's portfolio has grown to 363.2 million tenge in May and occupies 15.7% of total premiums in the ELA segment.

The Other types of annuity insurance segment showed the highest increase in premiums among all LIC segments in annual terms in May 2022. The dynamics increased by 127.5% in annual terms, which, however, turned out to be lower than the April dynamics of 143.5%.

The total fees of LICs amounted to 1.77 billion tenge in monetary terms. LIC KM Life is still the segment leader having collected 633.4 million tenge and occupying 35.8% of the segment (36.3% in April). LIC Halyk life moved up to the second place from the third collecting 539.6 million tenge and increasing its market share in the segment to 30.5% from 26.3% in April. LIC Freedom Finance Life, which collected 466.4 million tenge of premiums, went down to the third position, the market share of LIC in the segment decreased to 26.3% against 29.9% in April.

Accident insurance premiums collected by LICs fell by 25.8% in annual terms as of end of May 2022 against a 21.8% fall in annual terms in April. LICs collected 6.24 billion tenge in monetary terms. According to the results of May, LIC Freedom Finance Life remains the segment leader with a portfolio of 2 billion tenge. The company's market share in the AI segment among LICs increased to 33.3% from 29.5% in April. LIC EIC moved up to the second place from the third. At the end of May, its portfolio amounted to 1.35 billion tenge, however, the market share in the segment dropped to 21.8% against 22.2% at the end of April. LIC Halyk life went down to the third place from second collecting 1.28 billion tenge of premiums and reducing its market share in the segment to 20.5% against 25.2% in April.

The premiums in the sector “Insurance of an employee against accidents in the performance of their labor duties” (CAI) at the end of May 2022 increased by 31.5% in annual terms against an annual increase of 28.7% at the end of April. The total portfolio of LICs on CAI amounted to 19.39 billion tenge. According to the results of May, LIC KM Life became the segment leader with a portfolio of 4.47 billion tenge and market share of 21.3%. The second largest insurer in the segment is LIC Nomad Life having collected 4.1 billion tenge and a 21.1% market share. The third largest insurer in the segment is LIC Halyk life, it has collected 4.04 billion tenge of premiums and formed a 20.9% market share.

Health insurance premiums (VHI) among LICs in May 2022 increased by 110.3% in annual terms, against an annual growth of 109% in April.

The total portfolio of premiums on VHI among LICs was 1.69 billion tenge. LIC KM Life remains the segment leader with a portfolio of 1.34 billion tenge. The company's portfolio grew by 90.9% against the annual increase of 92.8% in April in annual terms. The high dynamics of LIC premiums slows down impacting the market share in the segment.

As of May, the share of LIC KM Life in VHI among LICs was 79.3% against 83.3% in April and 85.3% in March. The decrease in the leader’s share is primarily due to the portfolio growth of the second leading company LIC EIC. The company's portfolio grew to 322.2 million tenge, increasing its market share to 19.6% against 15.8% in April and 13.9% in March. LIC Freedom Finance Life being the third, occupies 0.6% of the segment (according to the results of May and April).

The total assets of LICs increased in annual terms by 19.8%, to 793.5 billion tenge in May 2022. Insurance reserves grew by 22.6% to 583.4 billion tenge in annual terms. Equity capital of LICs increased by 9.9% (yoy) to 136.3 billion tenge.

Photos are from open sources.

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