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Life Insurance is breaking forth

As of early September 2021, life insurance premiums exceeded 110 billion tenge.
Life Insurance is breaking forth

The total gross premiums of LICs collected for eight months of 2021 increased in annual terms by 79.8% to 245.5 billion tenge. The largest premium portfolio of 82.6 billion tenge belongs to LIC Halyk life. The company's share in the life insurance market increased to 33.6%. LIC Nomad Life remains the leader in assets (220 billion tenge), insurance reserves (167.9 billion tenge) and retained earnings (9.6 billion tenge) among life insurance companies. In terms of insurance reserves, it is leading in the entire insurance market of the Republic of Kazakhstan. The market share of LIC Nomad Life in the life insurance industry increased to 29.5%. Nomad Life is the only life insurance company that offers an investment product life insurance Unit-linked. As of end of August 2021, the company's portfolio amounted to 24.7 billion tenge. This information is to be clarified as the portfolio data on the website of the National Bank of Kazakhstan is shown for reference only and not included in the total amount of the company's fees, the fees are presumably reflected in total from the product launch.

Following the results of eight months of 2021, the Life Insurance segment returned the status of the most growing insurance class, at the same time becoming the most voluminous insurance class. The annual growth of life insurance premiums was 111%, in absolute terms, the premiums reached 110.8 billion tenge. The segment has grown due to the strong premium dynamics of the leaders', which have increased their market share, as well as the growth of the portfolio of LIC Standard Life that shows the highest dynamics of premiums at 284.8% (yoy). LIC Nomad Life holds the second position in terms of premium dynamics of 127.8% (year-on-year). The third position is taken by LIC Halyk life, which has increased its premiums by 119.9% ​​(year-on-year).

LIC Halyk life remains the leader in the Life insurance segment having collected 49.3 billion tenge and occupying 44.5% of this segment. The second place in terms of portfolio volume is taken by LIC Nomad Life. The company collected 35.8 billion tenge and increased its market share to 32.4%.

LIC European Insurance Company (EIC) remains the third largest life insurer. As of end of August 2021, the LIC increased its portfolio to 17.3 billion tenge and formed15.7% of the segment.

The total LIC premiums on annuity insurance in August 2021 slowed down the growth rate to 96.4% against 122.5% in July (compared to the same periods in 2020). Annualized premiums on retirement annuities kept three-digit growth dynamics (101.9%) versus 129.8% in July (yoy). Annuity insurance and retirement annuities included in it grew due to the positive fee dynamics of all LICs operating in these segments. The total LIC premiums on annuity insurance amounted to 92.9 billion tenge in monetary terms, on retirement annuities - 88.3 billion tenge.

LIC Nomad Life remains the leader of annuity insurance and retirement annuity segments. According to the results of eight months of 2021, the volume of the LIC's portfolio of annuity insurance increased to 29.3 billion tenge, including retirement annuities up to 28.5 billion tenge. According to the results of August, LIC Nomad Life occupies 31.6% of the annuity segment, including 32.3% of retirement annuities.

The second place in terms of annuity portfolio is occupied by LIC Halyk life. It collected 25.2 billion tenge of annuity insurance premiums, including 23.6 billion tenge of retirement annuities. The share of the LIC in the annuity insurance segment is 27.2%, in the segment of retirement annuities - 26.7%.

The third place is occupied by LIC Eurasia. The company collected 12.3 billion tenge, including 12.2 billion tenge on retirement annuities. According to the results of eight months of 2021, LIC Eurasia holds a 13.3% share in the Annuity Insurance class, including 13.8% in the retirement annuity segment.

According to the results of eight months of 2021, the premiums on the Employer Liability Annuity (ELA) class in annual terms reduced the dynamics to 23.4% against 31.5% in July (year-on-year) exceeding 3.2 billion tenge. LIC Halyk life is a leader of the ELA segment with premiums of 1.1 billion tenge. Nevertheless, the market share of LIC Halyk life in the ELA segment continues to decline due to the growing fees of other companies. In August, the share of LIC Halyk life in ELA decreased to 35.6% against 36.9% in July and 37.3% in June 2021.

LIC Nomad Life holds the second place. The portfolio of its premiums in the ELA segment increased to 742.6 million tenge, the market share grew to 23.2% against 21.8% in July and 20.7% in June. LIC KM Life took the third place. It collected 421.9 million tenge of premiums, but reduced its market share to 13.2% against 13.8% in July. At the end of eight months of 2021, the share of segment leaders continued to decline to 71.9% against 72.5% in July and 72.6% in June.

The “Other types of annuity insurance” segment slowed down its annual dynamics to 45.3% in August against 56.6% in July. The total portfolio of LIC premiums in monetary terms exceeded 1.4 billion tenge.

LIC KM Life remains the segment leader. The company collected 775.6 million tenge reducing its market share in the segment to 54.3% in August against 56.1% in July. LIC Halyk life showed the second result in the premium collection of 550 million tenge increasing its market share in the segment to 38.5% against 36.3% in July. The third largest insurer in the segment, LIC Nomad Life, collected 79.3 million tenge and formed the segment market share of 5.5%.

According to the results of eight months of 2021, the top three LICs collected 98.2% of premiums in the “Other types of annuity insurance” class against 98% in July.

Following the results of eight months of 2021, Accident Insurance (AI) premiums collected by LICs decreased the dynamics to 33% versus 37.4% in July (year-on-year). The aggregate premiums of LICs amounted to 11.9 billion tenge in absolute terms. LIC KM Life remains the segment leader, its 4-bln tenge portfolio has been showing zero dynamics for the third month in a row in relation to the previous month. LIC premiums increased by 99.8% in annual terms. Due to the weak dynamics of premiums, the market share of LIC KM Life declined to 33.9% against 37.7% in July. LIC Freedom Finance Life ranks second having collected 3.1 billion tenge in premiums and increased its market share to 26.6% against 24.5% in July.

As of end of August 2021, the third position is held by LIC EIC. It collected 2.2 billion tenge and increased its market share to 19% against 17.7% in July.

The premiums in the sector “Insurance of the employee against accidents in the performance of his duties” (CAI) for the first eight months of 2021 showed an increase of 5.3% against 5.6% in July (year-on-year). The total collection of CAI premiums amounted to 28.1 billion tenge.

LIC Nomad Life is still a leader of the CAI segment with the portfolio of 6.7 billion tenge and occupies 23.8% of the segment. As of end of August, LIC Halyk life returned to the top three in CAI premium collection among LICs attracting 6.4 billion tenge and forming 23% of the CAI segment. LIC Eurasia moved down to the third place. It collected 5 billion tenge of premiums and occupied 18% of the CAI market. LIC KM Life left the top three in August. Following the results of eight months, its portfolio in the segment reached 4 billion tenge and decreased in market share to 14.3% against 19.5% in July.

The collection of health insurance premiums (VHI) among LICs in the first eight months of 2021 accelerated to 71.9% against 31% in July (year-on-year). The premiums exceeded 1.5 billion tenge in monetary terms. LIC KM Life remains the largest insurer in the segment. The company collected 1.3 billion tenge in August increasing its market share to 88.5% against 83.1% in July. The growth of the KM Life’s portfolio is due to the high collection dynamics (85.2%) in relation to July, in annual terms the premiums have grown by 56.9%.

The second place on VHI premium collection among LICs is taken by LIC EIC. It collected 141 million tenge of premiums, however, the company's market share dropped to 9.3% against 13.6% in July. The third place remains with LIC Freedom Finance Life. The company gained 16.2 million tenge and reduced its market share to 1.1% against 1.7% in July and 1.4% in June.

According to the results of eight months of 2021, the total assets of LICs increased by 26.2% against 17.4% in July (year-on-year) to 699.2 billion tenge. The insurance reserves grew by 28.3% against 29.9% in July (year-on-year) and exceeded 501 billion tenge. The equity capital of LICs increased by 30.3% against 21.4% in July (year-on-year) to KZT 135.3 billion.

Photos are from open sources.

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