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Striving for growth

LICs maintained high positive premium dynamics in September
Striving for growth

Total gross premiums of LICs, including unit-linked sales, built up by 27.5% year-on-year in September 2023 and actually repeated the annual increase of 27.8% in August. The total insurance portfolio grew to 348.4 billion tenge in monetary terms. LIC Nomad Life remains the only company offering a Unit-linked investment life insurance product.

The premiums in the Life Insurance class grew by 15.6% in September in annual terms against an annual increase of 14.5% in August. LICs collected 157.6 billion tenge in monetary terms. The share of life insurance premiums in the total portfolio of LICs rose to 45.2% against 44.5% in August and 43.38% in July.

Based on the results of September, LIC Halyk life remains the leader of the segment with a 71.7 billion tenge portfolio and 45.5% of the life insurance market (46.2% according to the results of August). LIC Nomad Life takes the second place with a premium portfolio of 40.49 billion tenge and a 25.7% segment share (25.1% at the end of August). The company’s fees for the month and on an annual basis were higher than the market growth rate. The premiums of LIC Halyk life were higher than market growth only in annual terms. LIC European Insurance Company (EIC) is in the third place with a 20 billion tenge portfolio. The company’s fees for the month were below market growth, and they turned out to be negative in annual terms. The share of LIC EIC in the life insurance segment made 12.7% versus 12.8% in August. The concentration of premiums of the three largest LICs in the segment was 83.9% in late September versus 84.1% in August. The share of the first two LICs in the top 3 formed 84.8%.

The dynamics of premiums on SESS in September compared to August made 73.5% versus an increase in August of 32.8% compared to July. LICs collected 136.1 million tenge in total. Four LICs continue to collect premiums. LIC Halyk life remains the segment leader with a 75.6 million tenge portfolio forming a 55.5% market share (53.2% at the end of August). LIC Nomad Life is the second with a 39.5 million tenge portfolio and a 29% market share in the segment (24.7% at the end of August). LIC Freedom Life is the third with a portfolio of 19.4 million tenge and a 14.3% share in the segment (20.3% at the end of August). Due to the small number of participants, concentration in the SESS segment remains very high. The first two LICs built up their share in the segment to 84.5% against 77.9% in August.

Annuity insurance excluding retirement annuities grew by 54.3% in September 2023 against an increase of 56.3% (all year-on-year). LICs collected 3.8 billion tenge in monetary terms. LIC KM Life is still the segment leader with a 2.5 billion tenge portfolio. The company shows high rates of premium collection in annual terms; they made124.1% in September against an annual increase of 118.7% in August. The share of LIC KM Life in the segment rose to 66.6% at the end of September against 66% in August. LIC Halyk life is in the second place with 893.3 million tenge of premiums and a 23.2% segment share (22.8% at the end of August). LIC Freedom Life is in the third place with a 189.6 million tenge portfolio and 4.9% of the segment (5.5% of the segment at the end of August). The share of the three largest insurers in the segment in September was 94.6% versus 94.2% in August.

The collection of retirement annuity premiums increased the dynamics in September 2023. The premiums grew by 41.3% in annual terms against an annual increase of 40.4% in August. The volume of premiums amounted to 81.9 billion tenge in monetary terms. The share of retirement annuities in the total LIC portfolio grew to 23.5% compared to 23.3% in August. LIC Nomad Life remains the leader in the retirement annuity segment with 26.9 billion tenge of premiums and 32.9% of the total fees on retirement annuities (33.6% in August). LIC Halyk life is in the second place with a portfolio of 23.8 billion tenge and a share in the segment of 29% (28.6% at the end of August). The third place is held by LIC Freedom Life, its portfolio increased to 17.2 billion tenge and a 21% share in the segment (20.5% at the end of August). The concentration of premiums of the three largest LICs in September was 83% vs 82.7% in August.

Accident insurance (AI) premiums collected by LICs continued to decline in September 2023. The fees grew by 110.3% against an increase of 148.6% in August (all year on year). LICs collected 35.4 billion tenge in monetary terms equal to 10.1% of the total fees of LICs (10.5% as of August). LIC Freedom Life is the segment leader with a 15.4 billion tenge portfolio or 43.5% of the segment (42.3% at the end of August). LIC KM Life is in the second place with a 9.4 billion tenge portfolio, which corresponds to 26.5% of the segment (28.6% at the end of August). LIC EIC is the third with a 6.8 billion tenge portfolio and a 19.4% segment share (18.8% at the end of August). The fees of the three largest AI insurers by LICs are 89.3%.

The premiums in the “Insurance of an employee against accidents during the performance of work duties” (CAI) sector showed a growth dynamics of 26.1% as of end of September 2023 against an increase of 25% in August (all year-on-year). LIC fees exceeded 65.2 billion tenge. The CAI premium portfolio occupies 18.7% of the total LIC portfolio (19.2% at the end of August). Based on the results of September, LIC Halyk life is the leader of the segment with a 16.9 billion tenge portfolio and 26% of the segment (26.3% based on the results of August). LIC Nomad Life ranks second with a portfolio of 15.7 billion tenge or 24.1% of the segment (23.6% at the end of August). LIC Eurasia is the third with a 9.8 billion tenge portfolio or 15.1% of the segment (15.2% at the end of August). The concentration of the three largest LICs in the segment increased to 65.2% compared to 64.9% in August.

The health insurance (VHI) segment by LIC in September 2023 grew by 29.9% against an increase of 21.5% in August (all year-on-year). The fees exceeded 4 billion tenge in absolute figures. The share of voluntary health insurance premiums by LIC in total premiums was 1.1%. LIC EIC remains the leader of the segment with a portfolio of 2.4 billion tenge and a market share of 60.8% (at the end of August - 60.8%). The second place is taken by LIC Eurasia. The company collected 1.2 billion tenge in premiums forming 31.9% in the segment (32.4% at the end of August). LIC Freedom Life is in the third place with a 127.6 million tenge portfolio and a 3.2% segment share (3.5% at the end of August). The share of the three largest VHI insurers among LICs was 95.8% vs 96.7% as of end of August.

As of October 1, 2023, the regulatory assets of LICs amounted to 1.08 trillion tenge showing an annual increase of 22.3%. The insurance reserves grew by 11.2% (year-on-year) reaching 724.8 billion tenge. The equity capital of LICs rose by 14.1% compared to the same period in 2022 and was 249.2 billion tenge.

Photos are from open sources.

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