The total gross premiums of LICs for four months of 2021 showed the maximum growth dynamics (by 106.7%) and the maximum volume in monetary terms (121.5 billion tenge). According to the results of the period, the leader in terms of total fees was LIC Halyk life, which collected 38.4 billion tenge of premiums. The company's market share in the life insurance industry was 31.6%. LIC Nomad Life is leading in terms of assets (215.2 billion tenge), insurance reserves (161.8 billion tenge) and retained earnings (4.1 billion tenge) among life insurance companies. In terms of insurance reserves, the company is the leader in the entire Kazakhstani insurance market. The market share of LIC Nomad Life in the life insurance sector is 30.6%.
According to the results of the first four months, annuity insurance continues to be the life insurance market drive. The aggregate annuity insurance premiums increased by 203.9% as of early May compared to the same results in 2020 reaching 54.8 billion tenge, thanks to a strong retirement annuity growth by 220% (yoy), as well as employer liability annuity (ELA) growth - by 52.8%.
In monetary terms, the retirement annuity fees rose to 52.4 billion tenge, but decreased to 43.1% in the total LIC fees due to an increase in premiums in other insurance classes. All companies collecting premiums in the segment of annuity insurance and retirement annuities demonstrated positive dynamics of premiums.
LIC Nomad Life remains the leader in the annuity insurance sector and retirement annuity segment. By the end of April, the volume of the LIC's portfolio for annuity insurance increased to 18.4 billion tenge including 18 billion tenge on retirement annuities. In late April 2021, LIC Nomad Life formed 33.6% in the annuity segment, including 34.5% on retirement annuities.
The second place in terms of annuity portfolio is taken by LIC Halyk life. The company collected 14.2 billion tenge of annuity insurance premiums, including 13.3 billion tenge on retirement annuities. This increased the share in the annuity insurance segment to 26% and the share in the retirement annuities segment to 25.4%.
The third place was once again taken by LIC Eurasia; the company raised 7.3 billion tenge, including 7.29 billion tenge in retirement annuities, outstripping LIC Freedom Finance Life. According to the results of April, LIC Eurasia makes 13.4% of the annuity insurance class, including 13.9% in the retirement annuity segment. LIC Freedom Finance Life reduced its share in the annuity class to 12.9%, and 13.2% - in the retirement annuity segment.
In April 2021, the annualized employer liability annuity (ELA) premiums grew significantly by 52.8% reaching 1.77 billion tenge and letting the ELA premiums make 1.5% in the total LIC portfolio, against 1.3% in March.
The Halyk life LIC remains the leader of the ELA segment. In April 2021, it collected 704.2 million tenge. However, the large volume of premiums did not prevent the share from decreasing to 39.7% against 46.8% in March 2021. The second place is held by LIC Nomad Life. The portfolio of its premiums in the ELA segment grew to 328.4 million tenge, and the market share amounted to 18.5%. The third place is occupied by LIC KM Life. It collected 326.6 million tenge of premiums increasing its market share in the ELA segment to 16.7%.
The activity of the remaining LICs led to reduction in the share of the top three in the ELA segment to 74.8% vs 77.6% in the first three months of 2021.
The segment “Other types of annuity insurance” continued the high dynamics of premiums in April. The portfolio increased by 28.2%, to 639 million tenge in annual terms.
The maximum amount of premiums of 326.6 million tenge was collected by LIC KM Life. However, its market share in total premiums on this insurance class dropped to 51.1%. LIC Halyk life attracted 255.1 million tenge, reducing its market share in the segment to 39.9%. LIC Nomad Life raised 43.8 million tenge, increasing its market share in the segment to 6.9%. At the end of four months of 2021, the three largest LICs in the “Other types of annuity insurance” class collected 97.9% of premiums against 98.3% of premiums at the end of the first three months of 2021.
As of start of May 2021, life insurance premiums gained speed and increased by 102.2% to the results for the same period in 2020. The fees amounted to 47.79 billion tenge in absolute terms expanding the presence in the total portfolio of LICs to 39.3% against 36.3% at early April 2021.
According to the results of April, LIC Halyk life is still a segment leader. The company collected 21.1 billion tenge being the first among LICs to exceed the 20 billion tenge mark in the life insurance segment.
The market share of LICs increased to 44.3%. LIC Nomad Life is second; it has collected 15.3 billion tenge and occupies 32.2% of the life insurance segment.
LIC European Insurance Company (EIC) remains the third largest insurer in the life insurance segment. The LIC increased its portfolio to 7.2 billion tenge at the end of April 2021, thereby fixing the market share in the life insurance segment at 15.2%.
Accident insurance (AC) premiums collected by LICs for the first four months of 2021 have shown signs of recovery of the previous growth rates. The April dynamics was 20.9% (yoy) against an annual growth of 14.7% in March. LIC premiums amounted to 5.89 billion tenge in monetary terms.
The largest accident insurance portfolio among LICs was collected by LIC KM Life. However, the dynamics of its premiums on a monthly basis remains zero. The LIC raised 2.5 billion tenge, the same amount as in February and March. The company's premiums increased by 79.4% compared to the same period in 2020. Zero premium growth reduces the market share of KM Life LMC in the AI segment. At the end of April, the share shrank to 43.1% against 51.5% in March and 62.9% in February 2021.
LIC Freedom Finance Life holds the second place, having increased its market share to 21.3%. For the first time ever, the company's fees in this segment exceeded 1.2 billion tenge in April. As of end of April, 2021, the third position is kept by LIC EIC. It raised 972.4 million tenge, which helped its segment market share grow to 16.5% against 13.3% in March and 9.7% in February 2021.
The premiums in the “Insurance of an employee against accidents in the performance of his labor duties” (CAI) sector recorded a weak growth of 5.4% at the end of April 2021, nevertheless, exceeding the threshold of 12.2 billion tenge. LIC Nomad Life is an irreplaceable leader of the CAI segment. The LIC portfolio exceeded 3.19 billion tenge in absolute terms, and formed 26.1% of the segment. LIC Halyk Life is in the second place, its portfolio increased to 2.37 billion tenge, but the market share in the segment has fallen to 19.4%.
A tough competition for the third place in the CAI segment continues. At the end of March, LIC Standard Life returned to the top three, but in April was toppled out by LIC KM Life, which occupied 15.3% of the segment's share. In monetary terms, the premium portfolio of LIC KM Life in the CAI segment amounted to 1.87 billion tenge. In late April 2021, the share of the two largest LICs in the CAI segment for the first time was less than 51% dropping to 45.5%.
Health insurance premiums (VHI) among LICs increased by 17.7% (year-on-year), to 764.7 million tenge in April 2021. LIC KM Life remains the largest insurer in the segment. The company’s premiums grew to 690.5 million tenge in April, but the share in the segment dropped to 90.3% against 94.7% in March 2021. The decrease was facilitated by the high dynamics of premium collection by other LICs. The premiums of LIC EIC, which ranks second in the segment, have risen to 63.9 million tenge, and the share doubled to 8.4% compared to March 2021. The third large company in the segment, LIC Freedom Finance Life increased its market share to 0.7% by collecting 5.3 million tenge.
At the end of April 2021, the total assets of LICs increased by 28.6% (year-on-year) to KZT 652.6 billion. Insurance reserves grew by 30.8% to KZT 469.2 billion. Equity capital of LICs got bigger by 40.5% (year-on-year), to 123 billion tenge.