KAZAKHSTAN: net profit of insurers in the first half of 2020 increased by 80% y-o-y

11 August 2020 —
In 1H2020, insurance companies of Kazakhstan generated a total profit (before corporate income tax) worth KZT 70.7 billion (~EUR 0.16 billion*), which is 67.9% more y-o-y, Allinsurance.kz reports according to ranking.kz portal.

Since the volume of income tax decreased by almost 8% y-o-y, insurers' net profit rapidly increased by 80%, to KZT 65.3 billion. Revenue of insurers in the reporting period amounted to KZT 265.5 billion (+19.4%), while expenses increased by 7.6%, to KZT 185.8 billion.

Income portfolio of insurers was dominated by insurance activity (generated KZT 198.3 billion). However, their share decreased by more than 6%, while the share of income from investment activity reached 22.2%.

In 1H2020, total retained earnings of insurers increased to KZT 66.1 billion (+85.8%), improving when compared with 1H2019 evolution when there was a decrease y-o-y. This indicator, in terms of insurers' market share, demonstrated a high concentration in TOP-10 companies. Between January-June 2020 the first 10 companies accounted for 82.7% of the total retained earnings at market level. EURASIA was the leader, with 41% of retained earnings on the insurance market.

* for the following exchange rate:
EUR 1 = KZT 452.52 (as of 1 July 2020)