The aggregate gross premiums of LICs for the first five months of 2021 have renewed the record. The dynamics of premiums made 115.5% in annual terms, the maximum since the year beginning, in monetary terms they were 151.4 billion tenge. According to the results of the period, LIC Halyk life remains the leader in terms of total fees having collected 48.5 billion tenge of premiums. The company's market share in the life insurance industry rose to 32.1%. LIC Nomad Life is the first in terms of assets (216.6 billion tenge) and insurance reserves (162.8 billion tenge) among life insurance companies. The company is a leader in the entire insurance market of the Republic of Kazakhstan by the volume of insurance reserves. The market share of LIC Nomad Life in the life insurance industry is 30%.
According to the results of five months, annuity insurance continues to be the most growing class of insurance in the life insurance industry. Total annuity insurance premiums increased by 195.5% at the beginning of June compared to the same period in 2020 exceeding KZT 65 billion thanks to a strong growth in retirement annuities by 208.3% (year-on-year) and employer liability annuities (ELA) by 61.4%.
Fees on retirement annuities have grown to 62 billion tenge in absolute terms but continue to decline (up to 40.9%) in the total LIC fees due to an increase in premiums on other insurance classes. All companies collecting premiums in the segment of annuity insurance and retirement annuities showed positive dynamics of premiums.
LIC Nomad Life remains the leader in the annuity insurance sector and retirement annuity segment. According to the results of five months of 2021, the volume of the LIC's portfolio on annuity insurance increased to 21.3 billion tenge, including 20.8 billion tenge on retirement annuities. As of May, LIC Nomad Life holds 32.9% in the annuity segment, including 33.65% on retirement annuities.
LIC Halyk life is in the second place in terms of annuity portfolio. It collected 17.5 billion tenge of annuity insurance premiums, including 16.3 billion tenge on retirement annuities. This allowed it to increase its share in the segment of annuity insurance segment to 26.9% and retirement annuity to 26.3%.
The third place was taken by LIC Eurasia. The company collected 8.6 billion tenge, including 8.59 billion tenge on retirement annuities. Based on the results of five months, LIC Eurasia forms 13.3% in the Annuity Insurance class, including 13.9% in the segment of retirement annuities.
The annualized employer liability annuities (ELA) premiums continued their upward trend at the end of May 2021 showing an annual growth of 61.4% to 2.1 billion tenge.
LIC Halyk life is still the leader of the ELA segment. In May 2021, the company collected 830 million tenge, but, nevertheless, was unable to retain its share in the segment, which decreased to 38.5% against 39.7% in April 2021 due to other LICs’ activity. LIC Nomad Life is in the second place. Its portfolio of premiums in the ELA segment increased to 507.7 million tenge, and its market share grew to 23.5%. The third place is taken by LIC KM Life. It collected 311.2 million tenge of premiums increasing its market share in the ELA segment to 14.4%. Intense activity of the three leaders in the ELA segment led to their market share growth to 76.4% against 74.8% in the first four months of 2021.
The segment “Other types of annuity insurance” in May showed the maximum growth since the year beginning developing the dynamics of 45.7% (year-on-year). The total premium portfolio in monetary terms increased to 778 million tenge. LIC KM Life continues to be in the leading position in the segment having collected 365.5 million tenge. It was closely approached by LIC Halyk life, which attracted 346 million tenge in May. In early June the market share of LIC KM Life in the segment decreased to 47% from a maximum value of 53% in February. The market share of LIC Halyk life in the segment, on the contrary, increased to 44.5%.
LIC Nomad Life collected 52.4 million tenge forming a market share of 6.7% in the segment. According to the results of five months of 2021, the three largest LICs in the “Other types of annuity insurance” class collected 98.2% of premiums against 97.9% of premiums for the first four months of 2021.
The Life Insurance class strengthened its three-digit growth rate and showed an annual growth of 127% in early June 2021, the highest since the year beginning. The fees amounted to 62.4 billion tenge in monetary terms increasing the presence in the total portfolio of LICs to 41.2% against 39.3% at the beginning of May 2021.
According to the results of May, LIC Halyk life remains the segment leader collecting 27.6 billion tenge and keeping the market share at 44.3%. The second position is occupied by LIC Nomad Life; the company has collected 20.2 billion tenge increasing its market share to 32.4% of the life insurance segment. LIC European Insurance Company (EIC) remains the third largest insurer in the life insurance segment. At the end of May 2021, the LIC enhanced its portfolio to 9.5 billion tenge expanding its market share in the life insurance segment to 15.3%.
Accident insurance premiums collected by LICs showed high growth rates of 41.2% (year-on-year) at the end of five months of 2021 against 20.9% at the end of four months and against an increase of 14.7 % in March. LIC premiums amounted to 8.4 billion tenge in monetary terms.
The largest portfolio in the amount of 4 billion tenge on accident insurance among LICs was collected by LIC KM Life. The company showed the maximum premium growth for this segment of 129.5% (yoy) increasing its market share again. At the end of May 2021, it amounted to 48.2% against 43.1% at the end of April but still less than the share of 62.9% at the end of February 2021.
LIC Freedom Finance Life collected 1.7 billion tenge of premiums and was in the second place with the market share of 20.8%, which reduced in comparison with April, when it had been 21.3%. LIC EIC is in the third place at the end of May 2021. It collected 1.2 billion tenge and became the third LIC that collected an AI portfolio of over 1 billion tenge. Nevertheless, it was unable to maintain its market share, which dropped to 15.2% against 16.5% in April.
At the end of May 2021, premiums in the sector “Insurance of an employee against accidents in the performance of his job duties” (CAI) slowed down dynamics to 4.3% against 5.4% in April. Four out of eight LICs collecting CAI premiums, showed a drop in premiums, and four demonstrated their growth in relation to the same period in 2020. The total fees of LICs on CAI amounted to 14.7 billion tenge.
The undisputed leader of the CAI segment is still LIC Nomad Life. The portfolio of the LIC has exceeded 3.6 billion tenge and occupies 24.8% of the segment. The second place is occupied by LIC Halyk life, its portfolio has grown to 2.66 billion tenge, but the segment market share fallen to 18.1%. LIC KM Life ranks third in the CAI segment. The company's portfolio amounted to 2.61 billion tenge and increased to 17.7% against 15.3% in April.
The market share of the top three insurers in the total CAI fees is 60.7%.
Sickness insurance premiums (VHI) among LICs grew by 23.3% in May 2021 against 17.7% in April (year-on-year), to KZT 804.4 million. LIC KM Life remains the largest insurer in the segment. As a result of May, the LIC collected 703.1 million tenge and formed 87.4% of voluntary health insurance among LICs compared to the April rate (90.3%) and March (94.7%) of this year.
The decrease in the leader’s share was facilitated by the high dynamics of fees collected by other LICs. The premiums of LIC EIC, which ranks second in the segment, have grown to 85.8 million tenge, and its share increased to 10.7% against 8.4% in April. The third large company in the segment LIC Freedom Finance Life raised 7.6 million tenge and increased its market share to 1% against 0.7% in April.
According to the results of five months of 2021, the total assets of LICs grew by 28.4% (year-on-year) to 662.1 billion tenge. The insurance reserves rose by 31.9% to KZT 475.9 billion. Equity of LICs grew by 32.9% (year-on-year) to 124 billion tenge.