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Life insurance paid off the investments at the end of the year

LICs restored the increase in collected premiums in 2023.
Life insurance paid off the investments at the end of the year

At the end of 2023, LICs increased the total collection of premiums by 34% against a decrease of 0.8% a year earlier. The total gross premiums of LICs collected in January-December reached 505.2 billion tenge, including unit-linked sales - 505.4 billion tenge.

The dynamics of premiums in the Life Insurance class grew by 19.8% in annual terms in 2023 against an increase of 5.7% in 2022. In absolute values, LICs collected 225 billion tenge - the largest volume of premiums among all life insurance segments. The increase in premiums was ensured by the positive annual dynamics of five LICs, four showed a decline in premiums. LIC Halyk life is a leader of the Life Insurance class based on the results of 2023. The company's portfolio in this segment built up to 99 billion tenge, and the market share - to 44% (39.2% in 2022). LIC Nomad Life took the second place by collecting 61.6 billion tenge of premiums and building up its share in the segment to 27.4% against 24.8% in 2022. The top three is closed by the European Insurance Company (EIC). The company collected 27.1 billion tenge of premiums, or a 12% segment share (25% at the end of 2022). The share of the Life Insurance class in total LIC premiums has dropped to 44.5% from 49.2% a year earlier due to an increase in premiums in other life insurance segments. The share of the three largest LICs in the class decreased to 83.4% from 88.9% a year earlier due to the strengthening of the positions of other LICs.

 

The premiums on SESS totaled 402.5 million tenge in December 2023. Five LICs have been collecting premiums since December 2023; LIC Standard Life has entered the segment. The leader of the segment is LIC Halyk life with a 182 million tenge portfolio. The company’s share in the segment reduced to 45.4% from 52.7% at the end of November 2023. LIC Nomad Life is in the second place with a 176.5 million tenge portfolio. The company's share in the segment increased to 43.9% from 35.6% at the end of November 2023. LIC Freedom Finance Life is in the third place with a portfolio of 32.7 million tenge, which corresponds to 8.1% of the segment (10.3% at the end of November 2023). The largest LICs in the SESS segment increased their share to 89% in December 2023, compared to 88.3% in November 2023.

Annuity insurance excluding retirement annuities showed a dynamics of 48.5% in annual terms at the end of 2023. LICs collected 4.9 billion tenge in monetary terms. The leader of the segment is still LIC KM Life with a 3.4 billion tenge portfolio. The annual increase in the company’s premiums was 109.9%, and the share in the segment was 70.3% at the end of the year. LIC Halyk life is in the second place. The company’s premium portfolio exceeded 1.1 billion tenge, and the share in the segment amounted to 23.4%. The third place is occupied by LIC Freedom Finance Life with a 204.2 million tenge portfolio or 4.2% of the segment. Seven LICs showed positive dynamics in premiums, one of them performed above the market growth rate. Premium collection in the segment remains highly concentrated with 93.6% of premiums collected by the two largest LICs in the segment.

Retirement annuity premiums accelerated by 67.3% at the end of 2023 compared to the same period in 2022 versus an annual decline of 37.7% in 2022. The total portfolio of premiums in the segment amounted to 135.4 billion tenge against 80.9 billion in 2022. The share of retirement annuities in the total portfolio of LICs increased to 26.7% in 2023 against 21% in 2022. LIC Nomad Life remains the leader in the retirement annuity segment with 44.9 billion tenge of premiums, which corresponds to 33.2% of total fees on retirement annuities. LIC Halyk life is the second with a portfolio of 38 billion tenge and share in the segment of 28.1%. LIC Freedom Finance Life holds the third position, its portfolio has grown to 30 billion tenge, and the market share is 22.2%. The concentration of premiums of the three largest LICs reduced to 83.4% compared to 84% at the end of 2022.

 

Accident insurance (AI) premiums collected by LICs showed the best dynamics among the segments of the Life Insurance industry at the end of 2023 demonstrating an annual growth of 100.2% (premiums increased by 13.7% in 2022). The total portfolio of LICs amounted to 46.8 billion tenge in absolute figures. LIC Freedom Finance Life retains leadership in the segment with 23 billion tenge in premiums, which is a 49.2% segment share versus 29.9% at the end of 2022. LIC KM Life is in the second place with a 9.4 billion tenge portfolio or 20.1% of the segment (it occupied the third place in the AI segment with a share of 22.5% in 2022). LIC EIC with a portfolio of 8.9 billion tenge and a share in the segment of 19.2% occupies the third position in accident insurance among LICs. The company was in the second position with a 26.7% share in the segment in 2022. At the end of 2023, seven LICs showed an increase in premiums, and two showed a decrease. The share of AI premiums in total LIC premiums was 9.2% versus 6.1% at the end of 2022. The share of the three largest LICs in the class grew to 88.4% versus 79% in 2022.

The premiums of the “Insurance of an employee against accidents during the performance of work duties” (CAI) class grew by 22.9% in annual terms at the end of 2023 against an increase of 67.5% in 2022. LICs collected 87 billion tenge in monetary terms. LIC Halyk life with a 22.7 billion tenge portfolio kept its leading position in the CAI segment but reduced its share in the segment to 26.1 from 29.7% in 2022. LIC Nomad Life with a portfolio of 20.39 billion tenge is in the second place. The company returned to the top three largest LICs in CAI and made 23.4% of the segment (15.6% at the end of 2022). LIC KM Life is in the third position with a 14.1 billion tenge portfolio and a 16.2% share in the segment (it took the second place with a 19.5% share at the end of 2022). LIC Eurasia left the top three largest insurers in CAI with a 13.5% share (18.8% in 2022). Of the eight LICs that collect premiums in CAI, six have showed positive dynamics in premiums, two – negative in 2023. The three largest LICs in the segment account for 65.7% of the segment's share (67.9% in 2022).

Health insurance premiums (VHI) among LICs built up by 38.8% at the end of 2023 against an increase of 90.9% in 2022 (all year-on-year). LICs collected 5.6 billion tenge of premiums in total. At the end of 2023, the leader in the segment and the three largest insurers changed. The first place with a 3.4 billion tenge portfolio is taken by LIC EIC. The company's share in the segment increased to 60.9% against 47.1% in 2022 (the company occupied second position then). LIC Eurasia came in second place with a portfolio of 1.6 billion tenge and a share of 29.7% (0.1% of the voluntary health insurance segment in 2022). LIC Nomad Life is in the top three largest VHI insurers. Its portfolio is 217.8 million tenge and the market share is 3.9%. LIC KM Life, the segment leader in 2022, has reduced its portfolio and occupies 2% of the segment versus 51.1% in 2022. LIC Freedom Finance Life, which occupied the third position in the voluntary health insurance segment among LICs, left the top three with a share of 2.8% at the end of 2023.

The total LIC assets grew by 21.7% in annual terms in 2023 (by 17.9% in 2022) and reached 1.118 billion tenge. The insurance reserves increased by 16.5% (by 23% in 2022) to 769.6 billion tenge. The equity capital of LICs rose by 43.2% (by 21.8% in 2022) to 248.5 billion tenge. Retained earnings of LICs increased by 72.7% (by 38.3% in 2022) to 101.9 billion tenge.  

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