The largest share in life GWP belonged to Halyk Life company (KZT 6.2 billion), while Freedom Finance Life managed to record the highest growth rates in the reporting period (+103.5%). In terms of growth rates, Standard Life recorded the second highest growth rate (+66.8%). According to 2020 February results, all local life insurers in terms of life premium collection saw positive dynamics.
The most dynamic life insurance class was annuity insurance and pension annuities. In February 2020, annuity insurance GWP increased to KZT 10 billion, and pension annuities reached KZT 9.2 billion. Accident insurance premiums, generated by life insurers, in February grew by 53.2% y-o-y to KZT 1.8 billion. In the total portfolio of life insurance companies, the share of this class reached 5.5% vs 4.8% a year ago.
Total assets of life insurers in Kazakhstan in February 2020 amounted to KZT 482 billion (+45.5% y-o-y in local currency). Insurance reserves increased by 28.4%, to KZT 347.2 billion while the equity went up by 57.8%, to KZT 80.9 billion.
According to S&P Global Ratings, growth of life insurance will be the main growth factor of the Kazakh insurance market in future, amid low growth rates expected in the non-life sector. However, as S&P noted, difficult operating environment in Kazakhstan puts pressure on the development of both sectors - life and non-life, the agency mentions in it's review.
*EUR 1 = KZT 420.81 (March 1st, 2020, National Bank)