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Life insurance continues to grow. LICs reported at month-end June

In June 2019, the gross premiums of LICs increased in annual terms by 63.4%, from 52.6 billion tenge to 86 billion tenge. Thus, according to the results of the first half of the year, LICs showed a positive trend in premiums. The annuity insurance maintained its dominant position in the total LIC portfolio in June. Annuity insurance fees increased 2.6 times to 34.1 billion tenge (in May, premiums increased 2.7 times - year-to-year). Life insurance premiums increased by 43.9 to 32.6 billion tenge by the end of last year (in May, premiums increased by 42.5% year-on-year). In terms of shares, annuity insurance premiums are 39.6%, and life insurance premiums are 37.9% of the LIC portfolio.
Life insurance continues to grow. LICs reported at month-end June

In terms of LICs, small companies performed the largest growth in life insurance premiums again. LIC Standard Life showed the maximum dynamics of 2,785.7% collecting 411.9 million tenge and taking the fourth position in terms of assets (32.4 billion tenge) among LICs. According to the results of June, it occupies 1.3% of the life insurance market.

The State Annuity Company (SAC), third largest LIC in terms of assets (35.7 billion tenge), has increased premiums by 452.1%, collecting 1.8 million tenge. The result is worse than one as of May, when premiums grew by 560.5% (year-to-year).

The third LIC that showed a three-digit increase in life insurance premiums (by 151.8%, to 6.4 billion tenge) is Nomad Life, second largest company in terms of assets (113.6 billion tenge) with the life insurance market share of 19.7%.  

LIC Freedom Finance Life, sixth largest insurer in assets (11.7 billion tenge), has sharply reduced premium collection in June. In June, the dynamics was 49.8% against growth in May of 367.3% (year-on-year). Nonetheless, the premiums of LIC Freedom Finance Life in absolute terms have amounted to 728.1 million tenge, which is 210.6 million tenge more than in May. As a result, the company's market share in total life insurance premiums has grown to 2.2%.

The European Insurance Company (EIC) recorded an increase of 48.2% in life insurance collecting 9.6 billion tenge. The fifth largest insurer in terms of assets (14.5 billion tenge) occupies 29.5% of the life insurance market, which is less than in May.

LIC Halyk life, the life insurance market leader, largest in assets (153.9 billion tenge), attracted 15.5 billion tenge. Premiums grew by 27.7%, but the result was lower than the growth rate of the life insurance market. The life insurance share of LIC Halyk life rose to 47.4%.

LIC Eurasia which obtained license this January collected 75 thousand tenge of premiums that grew by 25% compared to May. The three largest LICs: Halyk life, EIC and Nomad Life still occupy over 96% of the life insurance market.  

Annuities continue to be the most dynamic type of life insurance, although premium growth has somewhat declined. Insurance fees grew by 163%, while in May the increase was 173% (year-to-year). In monetary terms, the annuity premiums grew to 34 billion tenge. According to the results of June, the pension annuities that took 91% in annuity insurance grew 3.2 times to 31 billion tenge (year-to-year). They now occupy 36% in the total LIC portfolio. All companies operating in the pension annuity class demonstrated three-digit growth in June compared to the same period last year.

The maximum growth of 618.1% (in monetary terms, the premiums reached 3.6 billion tenge) turned out to be in LIC Standard Life. It occupies 11.7% of the pension annuity market. LIC Nomad Life is still the leader in annuity insurance and pension annuity class. The dynamics of the company's premiums on annuity insurance amounted to 169.9% in June; the insurer collected 16.3 billion tenge. The result helped LIC Nomad Life strengthen its market position. By results of June, the company increased the share of annuity insurance fees from 46.8% to 47.9%. In the pension annuity class the premiums increased by 234.3% reaching 15 billion tenge. In this segment the company increased its market share from 47.1% to 48.3%.

LIC Halyk life is the second in annuity insurance and in the pension annuity class. It collected 12.6 and 11.3 billion tenge, respectively, and the dynamics of premiums was higher than the market. By results of June, the dynamics of Halyk life insurance premiums in annuity insurance amounted to 204.9% (year-to-year), ensuring a market share of 37%, and in pension annuities - 259.5% (year-to -year) with market share of 36.6%.

LIC Standard Life is in third place. The company showed a downward trend in annuity insurance premiums. In June, premiums increased by 470.7% to KZT 3.7 billion against the May growth of 692.6% (year-on-year). The LIC market share in total market annuities fell from 12.8% to 10.9%. The pension annuity premiums of LIC Standard Life have increased by 618.1% to KZT 3.6 billion, while in May the dynamics has been impressive (989.1%). As a result, the company's market share shrank from 13.7% to 11.7%.

Premiums in the employer liability annuity class declined by 2.6% compared to last year. LICs raised 2.4 billion tenge. In total premiums of LICs the employer liability annuities account for 2.8%. According to the results of June, Nomad Life is the leader in this class forming 41.6% of the total fees for this class of insurance. Next is Halyk life with 38.8% market share.

SAC closes the top three with a 12% market share.

The class of other annuity insurance types still shows a decline. Premiums narrowed by 26.6% to 637.9 million tenge. The market is shared between the two largest life insurers. LIC Nomad Life occupies 50.4%, and LIC Halyk life - 49.1% of the market. SAC is the third market player with a market share of 0.4%.

Accident insurance premiums in view of LICs have practically maintained their dynamics and increased by 19% (year-on-year) and amounted to 4.1 billion tenge. LIC Halyk life has the largest portfolio and, accordingly, market share. Despite the fact that the company has reduced premiums by 1.1% in June, its premium volume is 2.4 billion tenge and forms 58.9% of the accident insurance market.

The second position on accident insurance is taken by the EIC with portfolio of 1.4 billion tenge. The company increased the dynamics of premiums by 98.2 7% (year-to-year), which allowed it to increase its share in the segment from 34.6% to 35.1%. LIC Freedom Finance Life is in third place in the accident insurance. It has increased its market share from 4.9% to 5.5%. The activity of LIC Freedom Finance Life has led to the total share reduction of the largest insurers in the accident insurance from 94.6% to 93.9%.

The employee's accident insurance during the performance of his professional duties (CAI) has been in a positive trend for the second month. Total premiums in the segment increased to 15.1 billion tenge, by 11.9% compared to the same period in 2018. Insurance service charges of all LICs have been increasing above the growth coefficients except for State Annuity Company (SAC), which has continued to fall cutting premiums by 58.5%.

The leader in terms of premiums is still LIC Nomad Life. The amount of insurance premiums amounted to 5.4 billion tenge, and the dynamics was at the level of 28.4%. The result allowed the company to maintain leadership in the portfolio share segment, 36.2% against 32.8% in May.

Halyk life, which has collected 4.5 billion tenge of premiums, is tightly following, with an increase in premiums of 32.9%. The company reduced its market share from 32.4% to 30.1%. LIC Standard Life is in third place, as in the previous month. Premiums increased by 314.9% and reached 2.1 billion tenge. The company's market share compared to the previous month decreased to 14%.

It is worth noting that LIC Eurasia is becoming active in CAI. It collected 598.2 million tenge of premiums and occupied 3.9% of the CAI segment in June.

The positive dynamics of premiums allows LICs to increase assets and insurance reserves. The assets of LICs grew to 368.1 billion tenge in June, insurance reserves increased to 297.2 billion tenge. The total capital of LICs has increased over the calendar year to 60.3 billion tenge. The net profit of CSG amounted to 9.4 billion tenge. The maximum profit of 3.2 billion tenge was shown by LIC Nomad Life. LIC Halyk life with a profit of 3.1 billion tenge is the second, and EIC with a profit of 1.9 billion tenge is the third.

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