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LICs showed a high increase in premiums in the 1st HY 2021

All segments of the life insurance market have grown
LICs showed a high increase in premiums in the 1st HY 2021

LICs’ performance as of start of summer was excellent. The dynamics of premiums as of six months of 2021 amounted to 100.2% in annual terms. The volume of collected gross premiums reached 182.6 billion tenge. According to the period results, the leader in terms of total fees is still LIC Halyk life, it has collected 59.3 billion tenge of premiums. The company's market share in the life insurance sector rose to 32.5%. LIC Nomad Life remains the leader in assets (222.1 billion tenge), insurance reserves (163.8 billion tenge) and retained earnings (6.7 billion tenge) among life insurance companies. In terms of insurance reserves, it is the leader in the entire insurance market of the Republic of Kazakhstan. The market share of LIC Nomad Life in the life insurance sector is 29.8%.

At the end of six months of 2021, annuity insurance continues to be a growth driver in the life insurance industry. Total annuity insurance premiums increased by 148.4% as of early July compared to the same period in 2020 exceeding KZT 75.69 billion. All areas of annuity insurance showed strong annual growth: retirement annuities (158.1%), employer liability annuities (ELA) - 41.9%, other types of annuity insurance - 29% (year-on-year).

The fees on retirement annuities increased to 72.2 billion tenge in absolute terms, but they continue to decline (up to 39.57%) in the aggregate premiums of LICs due to growing fees on other classes of insurance. Most LICs collecting premiums in the segment of annuity insurance and retirement annuities showed the dynamics of premiums above the market.

LIC Nomad Life remains the leader in the annuity insurance sector and the retirement annuity segment. Based on results of six months of 2021, the volume of the LIC's portfolio for annuity insurance increased to 24.1 billion tenge, including up to 23.58 billion tenge on retirement annuities. As of end of June, LIC Nomad Life occupies 31.9% in the annuity segment, including 32.6% in the retirement annuity segment.

LIC Halyk life is in the second place in terms of annuity portfolio. It collected 20.2 billion tenge of annuity insurance premiums, including 18.8 billion tenge of retirement annuities. The share of LICs in the annuity insurance segment was 26.7%, in the retirement annuity segment - 26.1%.

The third place is taken by the LIC Eurasia. The company collected 10.2 6 billion tenge, including 10.1 billion tenge on retirement annuities. Based on results of six months of 2021, Eurasia LIC makes 13.5% in the Annuity Insurance class, including 14% in the retirement annuity segment.

The premiums on the “Employer Liability Annuity” (ELA) class for six months of 2021 in annual terms showed an upward trend by 41.9% to 2.55 billion tenge. LIC Halyk life remains the leader of the ELA segment. The company collected 953.8 million tenge in June 2021, its market share in the segment, however, declined. The share was 37.3% against 38.5% in May 2021, due to the active collection by other LICs. The second place is taken by LIC Nomad Life. Its premium portfolio in the ELA segment grew to 528.5 million tenge, and its market share amounted to 20.7%.

The struggle for the third place intensified in June. Based on results of six months of 2021, LIC Standard Life returned to the top 3 largest insurers on ELA. It collected 376.7 million tenge of premiums increasing its market share in the ELA segment to 14.7%. The former winner of the ELA segment LIC KM Life moves to the fourth position, having collected 333.6 million tenge of premiums and reduced the share in the segment to 13% against 14.4% in May 2021.

At the end of the six months of 2021, the top three collected 72.67% of the segment's premiums.

The “Other types of annuity insurance” segment reduced the dynamics of premium growth to 29% in June against growth by 45.7% in May (year-on-year). The total portfolio of premiums in monetary terms increased to 864.8 million tenge.

LIC KM Life remains the segment leader. It collected 402.5 million tenge occupying 46.5% of the segment. The second result in the collection of premiums of 380.9 million tenge was shown by LIC Halyk life. At the end of six months of 2021, its market share in the segment was 44%. The third largest insurer in the segment LIC Nomad Life collected 62 million tenge forming the market share of 7.2%.

At the end of six months of 2021, the three largest LICs in the “Other types of annuity insurance” class collected 97.8% of premiums against a share of 98.19% at the end of five months of 2021.

According to the results of the six months of 2021, the “Life Insurance” class showed an annual increase in premiums by 116.2%. The fees amounted to 78.9 billion tenge in monetary terms expanding the presence in the total portfolio of LICs to 43.2% versus 41.2% in the first five months of 2021.

LIC Halyk life remains the segment leader having collected 35.3 billion tenge and enlarged its market share by 44.7%. The second position is occupied by LIC Nomad Life, the company has collected 25.4 billion tenge forming the market share of 32.2%. LIC European Insurance Company (EIC) occupies 15.2% of the segment and remains the third largest life insurer. At the end of June 2021, the LIC increased its portfolio to 12 billion tenge.

By the results of six months of 2021, accident insurance (AI) premiums collected among LICs reduced the dynamics of fees showing an increase of 32.3% against 41.2% at the end of five months of 2021 (year-on-year). The LIC premiums amounted to 9.3 billion tenge in absolute terms.  

LIC KM Life still has the largest portfolio in the amount of 4 billion tenge on accident insurance among LICs. In June, the LIC performed a weak dynamics of fee collection of 0.1% compared to May 2021. The growth was 99.8% in annual terms. As of early July 2021, the share of AI premiums of LIC KM Life collected among LICs dropped to 43.2% against 48.2% as of early June 2021.

LIC Freedom Finance Life ranks second, having collected 2.1 billion tenge of premiums and increased its market share to 23.1%. As of late June, 2021, LIC EIC holds the third position. It raised 1.59 billion tenge and expanded its market share to 17%.

In the six months of 2021, the premiums in the Employee Accident Insurance in the Performance of Labor Duties (CAI) sector increased their dynamics to 7.7% against an increase of 4.3% in May (year-on-year). The total fees of LICs on CAI amounted to 17.7 billion tenge. Of the eight LICs collecting premiums on CAI, five showed an increase in premiums, and three showed a drop in relation to the same period in 2020.

LIC Nomad Life remains the undisputed leader of the CAI segment. The LIC portfolio exceeded 4.5 billion tenge and made 25.6% of the segment against the share of 24.8% in the first five months of 2021. The second place was taken by LIC KM Life. In June, it collected 3.45 billion tenge and increased its market share in the segment to 19.5% against 17.7% in May 2021. LIC Halyk life dropped to third place with the portfolio of 3 billion tenge and market share of 17.2%. The share of the three largest insurers in the total CAI fees in the first six months of 2021increased to 62.2% against 60.6% in the first five months of 2021.

Health insurance premiums (VHI) among LICs increased by 27.5% in June 2021 against an increase of 23.3% in May (year-on-year). The premiums amounted to 842.6 million tenge in monetary terms.

LIC KM Life is still the largest insurer in the segment. According to the results of June, the LIC collected 713.3 million tenge and formed 84.7% of the segment against 87.4% in May. The decline in market share is due to the weak dynamics of premiums. In June, the LIC premiums grew by 1.5%, in annual terms - by 10.2%, the results were lower than the market growth rates.

The premiums of LIC EIC, which ranks second in the segment, have increased to 104.6 million tenge in annual terms at the end of June 2021, and the share has grown to 12.4% versus 10.7% in May. The third large company in the segment LIC Freedom Finance Life raised 11.79 million tenge and increased its market share to 1.4% against 1% in May.

According to the results of six months of 2021, the total assets of LICs grew by 29.1% (year-on-year) to 672.6 billion tenge. The insurance reserves increased by 31.2% to KZT 483.4 billion. Equity capital of LICs expanded by 30.1% (year-on-year) to 126.19 billion tenge

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