KAZAKHSTAN: investments in the financial and insurance sector declined by more than 11% from Jan-Aug, while insurer assets grew by 8%

For 8 months of this year, investments in the financial and insurance sector amounted to KZT 37.1 billion (-11.5% y-o-y). The largest part, almost 100%, of those investments were provided by owners' equity and retained earnings of the businesses, as Finprom.kz reported.

In total, the volume of investments in all the country's industries the share of the financial and insurance of only 0.6%. This share never exceeded 1% during the last years. Owners' equity and retained earnings are a constant main source of investment. The share of borrowed funds is decreasing. For January-August 2018 it reached only 0.04% (vs. 1.6% a year ago).

At the same time, assets of Kazakh insurers went up by 8% y-o-y for the 8 months of this year and reached almost KZT 1 trillion (KZT 995.2 billion). About 60% of all assets are owned by the TOP-5 insurance companies, according to the data of the analytical service Finprom.kz.

As market statistics show, for the last three years, insurer assets have been growing steadily (as of the end of August 2013, total assets amounted to KZT 524.3 billion, as of the end of August 2016 were KZT 847.6 billion, an additional 61.7%), and the average annual growth rate of insurance assets for the last five years reached 14.9%.

The market leaders in terms of asset size are EURASIA (KZT 249.5 billion), KHALYK-Kazakhinstrakh (KZT 91.8 billion), VICTORY, NOMAD LIFE, and KHALYK-Life. In terms of asset growth rate, the leading company, as of the end of August this year, is ASIA-Life (2 times more y-o-y).

*for approximate calculation

EUR 1 = KZT 424.16 (31.08.2018)

EUR 1 = KZT 202.70 (31.08.2013)

EUR 1 = KZT 379.01 (31.08.2016)

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

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