As of early August 2021, the total gross premiums of LICs amounted to 214 billion tenge. The premiums increased by 91.5% (yoy) in relative terms. LIC Halyk life collected the largest portfolio of premiums in the amount of 70.9 billion tenge. The company's share in the life insurance market grew to 33.2%. LIC Nomad Life remains the leader in assets (219 billion tenge), insurance reserves (164.7 billion tenge) and retained earnings (7.8 billion tenge) among life insurance companies. In terms of insurance reserves, the company is leading in the entire insurance market of the Republic of Kazakhstan. The market share of LIC Nomad Life in the life insurance industry is 29.4%.
At the end of seven months of 2021, annuity insurance continues to be the fastest growing class due to the positive dynamics of fee collection by all LICs operating in this segment. The total premiums of LICs on annuity insurance increased by 122.5% compared to the same period in 2020 and exceeded 85 billion tenge. All segments of annuity insurance also maintain a high dynamics of premiums. Retirement annuities grew in annual terms by 129.8%, employer liability annuities (ELA) - by 31.5%, other types of annuity insurance - by 56.6%. The fees on retirement annuities amounted to 80.8 billion tenge in absolute figures. However, they continue to decline (to 37.7%) in the aggregate portfolio of LICs due to growing fees in other classes of insurance.
LIC Nomad Life is still a leader in the annuity insurance sector and retirement annuity segment. According to the results of seven months of 2021, the volume of the LIC's portfolio on annuity insurance increased to 26.9 billion tenge, including 26.2 billion tenge on retirement annuities. As of end of July, LIC Nomad Life formed 31.8% in the annuity segment, including 32.5% in the retirement annuity segment.
The second place in terms of annuity portfolio volume is taken by LIC Halyk life, it collected 22.8 billion tenge of annuity insurance premiums, including 21.3 billion tenge on retirement annuities. The share of LICs in the annuity insurance segment was 26.9%, in the retirement annuity segment - 26.4%.
LIC Eurasia confirmed its third place by collecting 11.2 billion tenge, including 11.1 billion tenge on retirement annuities. Based on results of seven months of 2021, LIC Eurasia has a 13.3% share in the Annuity Insurance class, including 13.8% in the retirement annuity segment.
The employer liability annuities (ELA) class premiums for seven months of 2021 maintained a good trend of 31.5% in annual terms having reached 2.9 billion tenge. LIC Halyk life remains a leader of the ELA segment. According to the results of seven months of 2021, LIC premiums exceeded 1 billion tenge. Nevertheless, the market share of LIC Halyk life in ELA is gradually decreasing due to the growth of fees by other companies. In July, the share of LIC Halyk life in ELA dropped to 36.9%, against 37.3% in June and 38.5% in May 2021.
LIC Nomad Life is holding the second place. The portfolio of its premiums in the ELA segment increased to 643.2 million tenge, and the market share grew to 21.8% against 20.7% in June.
The race for the third place in the ELA segment continues. LIC Standard Life, which occupied the third position for six months and collected 405.2 million tenge (13.7% of the ELA segment share) in seven months, gave up a seat to LIC KM Life. The latter collected 408.1 million tenge of premiums, which allowed it to make a 13.8% ELA share. At the end of seven months of 2021, the top three collected 72.5% of ELA premiums against 72.66% at the end of six months.
The segment “Other types of annuity insurance” in July increased the annual dynamics of premiums to 56.6% against 29% in June. The aggregate portfolio of premiums in monetary terms exceeded 1.2 billion tenge.
LIC KM Life is the segment leader. It collected 696.6 million tenge in July and secured a large gap from other LICs increasing its market share in the segment to 56.1% against 46.5% in June. The second result in premium collection of 450.8 million tenge was shown by LIC Halyk life. At the end of seven months of 2021, its market share in the segment dropped to 36.3% against 44% in June. The third largest insurer in the segment is LIC Nomad Life, the LIC collected 70.2 million tenge forming the market share of 5.7% in the segment.
At the end of seven months of 2021, the top three LICs in the “Other types of annuity insurance” class collected 98% of premiums against 97.7% at the end of six months and 98.19% at the end of five months of 2021.
According to the results of seven months of 2021, the “Life Insurance” class showed an annual increase in premiums by 116.5%. The fees exceeded 95 billion tenge and formed 44.4% of the total portfolio of LICs in monetary terms.
LIC Halyk life remains the segment leader having collected 42.9 billion tenge and increased its market share to 45.2%. The second position is taken by LIC Nomad Life, it has collected 30.1 billion tenge making a market share of 31.7%. LIC European Insurance Company (EIC) remains the third largest life insurer. At the end of July 2021, the LIC increased its portfolio to 14.6 billion tenge and formed 15.4% in the segment.
Accident insurance premiums collected among LICs increased their dynamics to 37.4% at the end of seven months of 2021 against an increase of 32.3% at the end of six months (year-on-year). The LIC premiums exceeded 10.7 billion tenge in absolute terms.
The largest portfolio in the amount of 4 billion tenge on accident insurance among LICs was secured by LIC KM Life. For the second month in a row, the company has shown zero dynamics of premiums versus the previous month. The growth was 99.8% in annual terms. As of early August 2021, the share of premiums on accident insurance of LIC KM Life collected among LICs dropped to 37.7% versus 43.2% in early July 2021 and 48.2% in early June.
LIC Freedom Finance Life ranks second with 2.6 billion tenge in premiums, having increased its market share to 24.5%. As of end of July 2021, the third position is held by LIC EIC. The company collected 1.8 billion tenge and increased its market share to 17.7%.
The premiums in the sector "Insurance of an employee against accidents in the performance of his labor duties" (CAI) as of end of seven months of 2021 decreased dynamics to 5.6% versus 7.7% at the end of six months (year-on-year). The total fees of LICs on compulsory accident insurance amounted to 22.3 billion tenge. Of the eight LICs collecting premiums under CAI, four LICs showed an increase in premiums higher than the market growth rate, one below the market, and three showed negative dynamics in relation to the same period in 2020.
LIC Nomad Life is still the undisputed leader of the CAI segment. The LIC portfolio exceeded 5.4 billion tenge and made 24.2% of the segment. LIC Eurasia took the second place for the first time, it collected over 4 billion tenge of premiums and made over 18.1% of the CAI market. LIC KM Life moved down to the third place. In July, the company collected 3.9 billion tenge and reduced its market share to 17.7% against 19.5% in June, returning to the results of May, when the company's share was 17.7%. LIC Halyk life left the top three in terms of CAI premiums. The company attracted 3.8 billion tenge of premiums in July and formed 17% of the CAI segment.
The health insurance (VHI) premiums among LICs increased dynamics to 31% in seven months of 2021 against 27.5% in six months (year-on-year). The premiums amounted to 869.4 million tenge in monetary terms.
LIC KM Life remains the largest insurer in the segment. As of end of July, the LIC collected 722.3 million tenge but reduced its market share to 83.1%. The market share decrease is due to the lowest dynamics of premiums on voluntary health insurance among other LICs. The premiums of LIC KM Life in July grew by 1.3% (in annual terms - by 11.4%).
The premiums of LIC EIC, the second in the segment, grew to 118.1 million tenge, and its share increased to 13.6% against 12.4% in June and 10.7% in May. The third large company in the segment, LIC Freedom Finance Life, raised 14.7 million tenge and grew its market share to 1.7% against 1.4% in June.
According to the results of seven months of 2021, the total assets of LICs increased by 17.4% (year-on-year) to KZT 682.1 billion. The insurance reserves grew by 29.9% to KZT 492.4 billion. LIC equity increased by 21.4% (year-on-year) to KZT 128.8 billion.
Photos are from open sources.