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High dynamics of LIC premiums

The fees for 11 months of 2023 have exceeded the results of the same period in 2022
High dynamics of LIC premiums

The growth of total gross LIC premiums, including unit-linked sales, in November 2023 accelerated to 32.3% in annual terms against an increase of 30.4% in October, and 27.5% in September, all year-on-year. In monetary terms, the total insurance portfolio exceeded 440 billion tenge, while for 11 months of 2022, the collection of premiums was 336.8 billion tenge. LIC Nomad Life remains the only company offering a Unit-linked investment life insurance product. According to the National Bank of the Republic of Kazakhstan, as of December 1, 2023, the company’s market share in the life insurance industry was 24.9% or 109.6 billion tenge, including Unit-linked.

Life insurance premiums grew by 18.5% in annual terms in November against an annual increase of 17.7% in October and 15.6% in September. In monetary terms, LICs collected 198.7 billion tenge compared to 167.8 billion tenge a year earlier. The share of life insurance premiums in the total portfolio of LICs dropped to 45.1% against 45.4% in October. As of end of November, LIC Halyk life remains the segment leader with a 88.2 billion tenge portfolio, which is 44.4% of the life insurance market (45% at the end of October). LIC Nomad Life is the second with a 52.6 billion tenge premium portfolio and a 26.5% segment share against 26% in October. The fees of LIC Nomad Life for the month, as well as on an annual basis, were higher than the market growth rate, the fees of LIC Halyk life were higher only on an annual basis. LIC European Insurance Company (EIC) is the third. The portfolio of premiums grew to 25 billion tenge, but the dynamics of fees in monthly terms was lower than the market rate, and in annual terms it turned out to be negative. The share of LIC EIC in the life insurance segment was 12.6% versus 12.8% in October. The concentration of premiums of the three largest LICs in the segment at the end of November was 83.6% versus 83.7% in October.

The dynamics of premiums under SESS in November with reference to October dropped to 25.4% against the dynamics of 52.3% in October relative to September. LICs collected 260.2 million tenge in total. Four LICs continue to collect premiums. LIC Halyk life is still the leader of the segment with a 137.1 million tenge portfolio; the company’s share in the segment increased to 52.7% against 52.4% at the end of October. LIC Nomad Life is in the second place with a portfolio of 92.6 million tenge. The company's segment share grew to 35.6% compared to 35.5% in October. LIC Freedom Finance Life is in the third place with a 26.7 million tenge portfolio or 10.3% participation in the segment (10.6% at the end of October). Due to the small number of participants, concentration in the SESS segment remains very high. The first two LICs increased their share in the segment to 88.3% versus 87.9% in October.

Annuity insurance excluding retirement annuities in annual terms in November 2023 decreased the dynamics to 51.1% against an annual growth of 53.1% in October.

LICs collected 4.48 billion tenge in monetary terms. LIC KM Life is still a leader of the segment with a 3.1 billion tenge portfolio. The company’s fees in monthly and annual terms are higher than the market growth rate. The share of LIC KM Life in the segment increased to 70.5% at the end of November against 70.4% in October. LIC Halyk life is in the second place. The company’s premium portfolio exceeded 1 billion tenge, and the segment share grew to 23.1% against 22.9% in October. The third place is taken by LIC Freedom Finance Life with a portfolio of 201.5 million tenge or 4.5% of the segment against 4.9% in October. The share of the three largest insurers in the segment remains at 98%.

Collections of retirement annuity premiums in November 2023 accelerated by 60% compared to the same period in 2022 (the annual increase in October was 47.5%). In total, LICs collected 113.9 billion tenge in premiums compared to 71.2 billion tenge a year earlier. The share of retirement annuities in the total portfolio of LICs grew to 25.9% against 24.4% in October. LIC Nomad Life remains the leader in the retirement annuity segment with 37.8 billion tenge of premiums or 33.2% of the total collections on retirement annuities. LIC Halyk life is in the second place with a 32.1 billion tenge portfolio and a 28.2% segment share. The third place is held by LIC Freedom Finance Life. The company’s portfolio grew to 25.2 billion tenge increasing the share in the segment to 22.1%. The concentration of premiums of the three largest LICs rose to 83.5% compared to 83.4% in October.

Accident insurance premiums collected by LICs continued to demonstrate high dynamics in November 2023 showing the best growth among the segments of the Life Insurance industry. The fees increased by 112.1% in annual terms (113% in October). In total, the premiums reached 42.19 billion tenge in monetary terms compared to 19.9 billion tenge a year earlier. The segment's share in total LIC fees reduced to 9.58% versus 9.9% at the end of October. LIC Freedom Finance Life remains the leader of the segment. The company built up its premium portfolio to 20.4 billion tenge, and its segment share to 48.3% (46.2% as of October). LIC KM Life is the second with a 9.4 billion tenge portfolio; the company’s share in the segment decreased to 22.3% against 24.2% at the end of October. LIC EIC is the third with a 8.3 billion tenge portfolio and a 19.7% segment share (19.6% at the end of October). The fees of the three largest accident insurers by LIC increased to 90.4% against 89.9% in October.

Premium collections in the sector “Insurance of an employee against accidents during the performance of work duties” (CAI) at the end of November 2023 reduced the dynamics to 22.9% against an increase of 28.2% in October (all year-on-year). Cash collections increased to 75.1 billion tenge against 61.1 billion tenge a year earlier. The portfolio of CAI premiums in the total LIC fees decreased to 17% compared to 17.8% at the end of October. LIC Halyk life is the leader of the segment with a 20.5 billion tenge portfolio having formed a 27.3% share in the segment. LIC Nomad Life ranks second with a 18.1 billion tenge portfolio, which is 24.1% of the segment. LIC Eurasia is the third with a 11.1 billion tenge portfolio and a 14.8% segment share. The share of the three largest LICs in the segment is 66.2% versus 65.6% in October.

The health insurance (VHI) segment by LIC in November 2023 continued to pick up speed and grew by 36.8% against an increase of 31.7% in October (all year-on-year). In absolute figures, the fees exceeded 5 billion tenge compared to 3.7 billion tenge a year earlier. The share of voluntary health insurance premiums by LIC in total premiums remained at 1.15%, the October level. LIC EIC remains the leader of the segment with a 3.1 billion tenge portfolio and a 61.1% market share (61% at the end of October). The second place is taken by LIC Eurasia. The company’s portfolio is 1.5 billion tenge of premiums, which corresponds to 30.5% in the segment (31.3% at the end of October). LIC Freedom Finance Life is in the third place with a 148.6 million tenge portfolio, which corresponds to a 2.9% share in the segment (3.2% at the end of October). The share of the two largest VHI insurers by LIC dropped to 91.6% against a 92.3% share at the end of October, the share of the three largest VHI insurers decreased to 94.5% against 95.4% at the end of October.

According to the National Bank of the Republic of Kazakhstan, as of October 1, 2023, the regulatory assets of LICs amounted to 1.08 trillion tenge showing an annual increase of 22.3%. The insurance reserves grew by 11.2% (year-on-year) reaching 724.8 billion tenge. The equity capital of LICs built up by 14.1% compared to the same period in 2022 and was 249.2 billion tenge.

Photos are from open sources.

 

 

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