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LIC premiums increased by 79.8% in February 2021

Almost all segments of the life insurance market showed growth
LIC premiums increased by 79.8% in February 2021

The total gross premiums of LICs in February 2021 jumped by 79.8% reaching 59.8 billion tenge against the same figure in 2020. The leader in terms of total fees is still LIC Nomad Life, which has collected over 19.3 billion tenge of premiums. LIC Nomad Life is one of the largest insurers in the life insurance market and ranks first in terms of assets (210.4 billion tenge), insurance reserves (155.8 billion tenge) and retained earnings.

Annuity insurance continues to be the driver of the life insurance sector. In February 2021, the annuity premiums increased by 218.9%, and retirement annuity premiums - by 235%. In absolute terms, the premiums amounted to 32.1 billion tenge and 30.9 billion tenge, respectively.

At the end of February 2021, annuities accounted for half of all LIC premiums reaching 53.6%. The increase in premiums was ensured by the high positive dynamics of all LICs operating in the annuity insurance segment. Three LICs demonstrated growth in premiums above the market, three LICs showed an increase in premiums below the market.

LIC Nomad Life remains an undisputed leader in the annuity insurance sector and the retirement annuity segment by results of February 2021. The volume of LIC's annuity insurance portfolio amounted to 11.6 billion tenge of premiums, including 11.5 billion tenge on retirement annuities. The annual dynamics of premiums of 216.8% was very substantial, including 240.6% on retirement annuities. At the end of February 2021, LIC Nomad Life holds 36.2% of the retirement annuity segment including 37.1% on retirement annuities.

LIC Halyk life is in the second place in terms of portfolios. The company collected 8.3 billion tenge of annuity insurance premiums (25.9% of this insurance segment), including 7.7 billion tenge of retirement annuities (25% of the segment). The positive growth in premiums of LIC Halyk life amounted to 214.3% including 231.8% on retirement annuities.

The third place is held by LIC Freedom Finance Life. It collected 4.38 billion tenge of premiums including 4.32 billion tenge on retirement annuities. The volume of premiums was ensured by high dynamics of premiums of 223.1% (year-on-year), including 240.8% on retirement annuities. At the end of February 2021, LIC Freedom Finance Life increased its market share in the segment to 13.6% and up to 14% on retirement annuities.

In February 2021, the premiums in the employer liability annuities (ELA) class increased by 56.6% in annual terms, while growth in January by 121.5% was more significant. In monetary terms, the premiums amounted to 806.6 million tenge. LIC Halyk life remains the leader of the ELA segment. In February, in annualized terms, it increased its premiums by 291.2% getting 427.7 million tenge and thereby expanding the market share in the ELA segment to 53%.

By the results of February, the second place was taken by LIC Nomad Life. The portfolio of premiums in the segment amounted to 118.3 million tenge, which made it possible to increase the market share to 14.7%. LIC KM Life dropped to the third place. It collected 106.3 million tenge of premiums, however, the market share of LIC in the ELA segment decreased to 13.2%.

The segment “Other types of annuity insurance” showed positive dynamics of premiums by 7.4% (yoy) in February against the fall in January. The aggregate collection of LIC in the segment amounted to 331 million tenge. LIC KM Life got the largest portfolio in the segment (175.3 million tenge) at the end of February 2021 becoming the segment leader. The volume of collected premiums allowed LICs to significantly expand their market share and occupy 53% of the segment.

LIC Halyk life attracted 129.6 million tenge of premiums. Compared to January, the company's market share in the segment dropped to 39.2%. The third largest insurer in the segment, LIC Nomad Life, attracted 22 million tenge and made 6.7% of the segment. The three largest insurers in the “Other types of annuity insurance” segment accounted for 98.8% of collected premiums.

By results of February 2021, life insurance showed an increase in premiums by 15.6% compared to the results of the same period in 2020. Life insurance accounts for 28.6% of the total portfolio of LICs. Out of eight LICs collecting premiums on this type of insurance five showed a positive trend in premiums, and three – negative. Competition in the segment is fierce. In February 2021, the segment leader changed. LIC Halyk life was the first again. It collected 6.5 billion tenge of premiums and made 38.3% of the segment.

LIC Nomad Life moved down to the second position with a portfolio of 5.7 billion tenge and a 33.4% share in the life insurance segment. LIC European Insurance Company (EIC) remains the third largest insurer in the life insurance segment. At the end of February 2021, LIC collected 3 billion tenge reducing the market share in the life insurance segment to 18%.

Accident insurance premiums collected among LICs increased by 120.1% (year-on-year) in February 2021 exceeding 4 billion tenge. The segment was driven by KM Life, which collected 2.5 billion tenge of premiums. Thanks to attracted premiums, the company has become a leader in the segment and occupies 62.9% of the AI segment among LICs. LIC Freedom Finance Life remains in the second place. The company's premiums on AI insurance in February increased to 444.1 million tenge, but this did not help it retain its market share, which fell to 11%. According to the results of February 2021, the third position is kept by LIC EIC. It collected 390.4 million tenge of premiums, however, its market share in the AI segment dropped to 9.7%.

Health insurance premiums (VHI) among LICs increased in annual terms by 4.3% to KZT 647.7 million in February 2021. The largest insurer in the segment is still LIC KM Life. It collected 630.5 million tenge and formed 97.3% of the segment's share in February 2021. The second position is taken by LIC EIC. The company's premium portfolio is 11.9 million tenge (1.8% of the segment). The third place is occupied by LIC Freedom Finance Life. The volume of premiums of 2.4 million tenge makes it possible to make 0.4% of the VHI segment among LICs.

At the end of February 2021, the premiums in the "Insurance of an employee against accidents in the performance of his labor duties" (CAI) sector went down by 0.4% to the end of February 2020 reaching 5.9 billion tenge.

LIC Nomad Life is an irreplaceable leader of the CAI segment. In absolute terms the LIC’s portfolio amounted to 1.9 billion tenge forming 31.9% of the segment. The second place is taken by LIC Halyk life, its portfolio was 1.18 billion tenge and made 20% in the segment.

LIC Eurasia took the third position again. It collected 773.8 million tenge of premiums and outstripped LIC Freedom Finance Life, which attracted 685.3 million tenge of premiums. At the end of February 2021, LIC Eurasia increased its market share in the CAI segment to 13.1%. The share of LIC Freedom Finance Life remained at the level of 11.6%. In February 2021, the share of the two largest insurers in the CAI segment reduced to 51.9%, while in February 2020 they collected 62.8% of premiums.

At the end of February 2021, the total assets of LICs grew by 29.3% (year-on-year) and amounted to 623.3 billion tenge. The insurance reserves increased by 28.7% and made 446.8 billion tenge. Equity capital of LICs raised by 42.1% (year-on-year) to KZT 114.9 billion.

Photos are from open sources.

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