The growth of assets of non-life insurance companies in Kazakhstan slowed down against the background of a decrease in investment income and a more accelerated growth of paid claims over premiums. In 1Q2025, non-life assets increased by only 2.8% vs 6.2% in the same period in 2024, Forbes writes.

Now the share of non-life insurance accounts for 46.2% of all assets of the insurance market, while a year ago the share was 55.1%.

In the structure of assets of non-life insurers, a decrease in the share of securities is noted (from 77.3 to 75.5%) against the background of weak dynamics of the Kazakhstan stock market and a decrease in the indices of most foreign platforms. The main growth is noted in reinsurance assets (the share increased from 4.9 to 5.8%).

At the same time, the role of the top 8 players has increased: their share of assets now amounts to 91.2% vs 90.3% before due to higher income from insurance activities.

The sector's liabilities grew by only 1.6% (5.9% in 1Q2024), mainly due to an increase in the volume of liabilities for the remaining part of insurance coverage and an increase in the volume of liabilities for incurred losses.

Due to an increase in net claim expenses, a drop in income from investment activities affected by a negative revaluation of assets and losses from changes in the value of securities, the profit of non-life insurers fell almost by half, to KZT 16.7 billion (~EUR 30.80 million) from KZT 31.4 billion in 1Q2024.

As a result, the average return on equity in the sector amounted to 2.3% vs 4.6% in the same period of 2024, the source writes.

*1 EUR = 542.08 KZT (March 31st, 2025)