The total gross premiums of LICs, including unit-linked sales slightly slowed down the growth dynamics in June 2023 and grew by 32.6% against an increase of 33.8% in May (all year-on-year). The total insurance portfolio rose to 214.2 billion tenge in monetary terms. LIC Nomad Life remains the only company offering a unit-linked investment life insurance product. At the beginning of July, the assets of LIC Nomad Life amounted to 290.6 billion tenge, equity - 24.3 billion tenge, insurance reserves - 212.3 billion tenge. As of July 1, 2023, the market share of LIC Nomad Life in the life insurance industry, including unit-linked sales, is 24.8%, which corresponds to an insurance portfolio of 53 billion tenge.
Life insurance premiums accelerated to 11.5% in annual terms in June against an annual growth of 7.7% in May. In monetary terms, LICs collected 94.1 billion tenge. Due to the increase, the share of life insurance premiums in the total LIC portfolio grew to 43.9% against 42.9% in May. According to the results of June, LIC Halyk life remains the leader of the segment with a 42.3 billion tenge portfolio, having built up its segment share to 45% (44.5% in May). The second place is taken by LIC Nomad Life. The company collected 24.2 billion tenge of premiums increasing its share in the segment to 25.7% (25.4% in May). LIC European Insurance Company (EIC) is in the third place with a 13.4 billion tenge portfolio having reduced its segment share to 14.3% (15% in May). The premium concentration of the three largest LICs in the segment is increasing. The concentration reached 85% in June against 84.9% in May and 84% in April. Of the 9 LICs collecting life insurance premiums, 5 showed increase in premiums in annual terms, 7 LICs demonstrated growth compared to the previous month.
The dynamics of premiums on SESS in June swung up to 62.3% compared to May, while in May the increase against April was 35.6%. LICs collected 36.6 million tenge in monetary terms. Four LICs continue to collect premiums. LIC Halyk life with a 21.5 million tenge portfolio remains the leader of the segment having built up its share in the segment to 58.9% (a 46.6% segment share in May). LIC Freedom Life is in the second place with a portfolio of 12.3 million tenge. The company reduced its share in the segment to 33.8% in June from 44.1% in May. LIC Nomad Life is the third with a 1.8 million tenge portfolio or 4.2% of the segment. The lack of new LICs makes the collection of premiums under the SESS highly concentrated. Nevertheless, the share of premiums of the three largest insurers in June decreased to 97.7% against 99.2% in May.
Annuity insurance excluding retirement annuities in June 2023 accelerated year-on-year to 54.9% against an annual increase of 50% in May. The volume of premiums amounted to 2.5 billion tenge in monetary terms. LIC KM Life is still the segment leader; its portfolio has grown to 1.7 billion tenge. Nevertheless, the company continues to reduce its position in the segment. At the end of June, the market share of LIC KM Life decreased to 67.7% from 70.2% in May. LIC Halyk life is in the second place with a volume of premiums of 661.2 million tenge, which corresponds to a 25.7% share in the segment (27.2% in May). LIC Freedom Life took the third place with a 112.6 million tenge portfolio or 4.4% of the segment against 0.5% in May. The concentration of the segment is dropping, although it remains high. The share of the top three insurers in the segment reached 97.7% against 99.2% in May.
The portfolio of retirement annuity premiums in June 2023 reduced its growth dynamics. The premiums increased by 44.9% in annual terms, while in May the annual increase was 53.5%. The volume of premiums amounted to 53.7 billion tenge in monetary terms. The share of retirement annuities in total LIC premiums dropped to 25% from 25.7% in May. LIC Nomad Life remains the leader in the retirement annuity segment with premiums of 18.49 billion tenge or a 34.4% share in the segment (34.5% in May). LIC Halyk life is the second with a 15.4 billion tenge portfolio and a 28.7% segment share (28.3% in May). The third position is occupied by LIC Freedom Life with a portfolio of 10.8 billion tenge, which corresponds to a 20.2% share in the segment (20% in May). The premium concentration of the three largest LICs in the segment rose to 83.3% in June from 82.9% in May.
Accident insurance (AI) premiums collected by LICs increased by 122.2% in June 2023 compared to a 168.4% increase in May (all year-on-year). The dynamics of premiums is declining: the annual increase in April was 197.7%. LICs collected 19.7 billion tenge in monetary terms. LIC Freedom Life remains the leader of the segment with a 9.8 billion tenge portfolio, which corresponds to 49.9% of the segment. The company made 48.2% in the segment in May. There was a struggle for the second place, according to its results, LIC EIC retained the position of the second company in the segment. The portfolio of LIC EIC increased to 3.59 billion tenge or 18.2% share in the segment (according to the results of May - 19.7%). LIC KM Life remains in the third place with a 3.55 billion tenge portfolio, which is 18% in the segment (17% in May). The concentration of premiums has grown. The premiums of the three largest insurers in AI by LICs form 86.1%. Their share was 84.8% in May. AI premiums among LICs account for 9.2% of the total premiums of LICs.
The collection of premiums in the sector "Insurance of an employee against accidents in the performance of their labor duties" (CAI) increased by 70.3% in June 2023, while in May the growth was 75.4% (all year-on-year). Cash fees of LICs exceeded 41.6 billion tenge. According to the results of June, LIC Halyk life remains the leader of the segment with a portfolio of 11.4 billion tenge, which is 27.5% of the segment (30% in May). LIC Nomad Life is in the second place with a 9.8 billion tenge portfolio or 23.7% (24.8% in May). LIC KM Life returned to the top three, the company collected 5.7 billion tenge of premiums and formed 13.8% of the segment (11.3% in May). LIC Standard Life left the top 3 LICs in the CAI segment. The company’s portfolio amounted to 4.9 billion tenge, and the market share was 11.8% (12.7% in May). The segment is declining. The share of the three largest LICs in the segment amounted to 64.9% in June against 67.4% in May. The portfolio of CAI premiums accounts for 19.4% of the total portfolio of LICs.
The segment of health insurance (VHI) among LICs showed dynamics of premiums of 17.5% against an increase of 10.4% in May (all year-on-year). The fees amounted to 2.2 billion tenge in absolute terms. LIC EIC remains the segment leader. The company collected 1.36 billion tenge of premiums in June, a 3.6% growth compared to May, which reduced the company’s share in the segment to 61.6% (86.5% in May). There was a struggle for the remaining places in the top three.
LIC Eurasia returned to second place in the top 3. It collected 633.6 million tenge of premiums and formed 28.7% of the segment (16.2% in May). LIC Freedom Life moved down to the third position with a portfolio of 106.4 million tenge. Its share in the segment is 4.8% against 6.7% in May. LIC KM Life with a portfolio of 99.4 million tenge, which was 4.5% of the segment (6.1% of the segment in May) left the top three largest LICs in the segment. The share of the three largest VHI insurers by LIC dropped to 95.1% from 99% in May.
As of July 1, 2023, the company’s regulatory assets increased by 23.5% in annual terms exceeding 1 trillion tenge. The insurance reserves grew by 14.4% exceeding 691.5 billion tenge (yoy). The equity capital of the company built up by 47.1% compared to the same period in 2022 and amounted to 218.4 billion tenge.
Photos are from open sources.
