KYRGYZSTAN: insurers' income in Q1 increased by over 20% y-o-y, while annual growth of the total insurance amount under contracts exceeded 48%

20 July 2020 — Marina MAGNAVAL
In January-May 2020, total insurers' income (of 16 companies operating on the market in 1Q2020) amounted to KGS 407.6 million (~EUR 4.52 million*), which is 20.2% more y-o-y.

At the same time, insurers' expenses decreased by 6.5% to KGS 271.3 million, according to the analysis of the insurers' activity, published on the website of the National Statistical Committee of the Kyrgyz Republic.

According to the results of the first quarter, 12 insurers were profitable (their total profit reached KGS 137.8 million), while two companies ended 1Q2020 with losses. Thus, the balanced result of total profit amounted to KGS 136.3 million, which is 2.8 times higher y-o-y, the committee said.

However, total number of insurance contracts concluded for the period decreased by 9.1% y-o-y, to 43.7 thousand units. At that, 83.4% of all contracts were concluded with individuals and 16.6% - with legal entities. It is worth noting that these shares remained almost unchanged compared to 1Q2019. In terms of insurance classes, 56.8% of all contracts were concluded under voluntary insurance and 43.2% - under compulsory.

Total insurance amount under the contracts concluded in 1Q2020 reached KGS 209.3 billion (~EUR 2.32 billion), which is 48.2% more y-o-y in local currency. At the same time, 52.3% of the total amount fell on property insurance, 21.2% - on compulsory insurance, 14.8% - on liability insurance and 11.7% - on personal insurance.

Due to the pandemic situation, the emergency state in the country was extended until the mid-third decade of May 2020. For this reason, insurers' statements were presented in aggregate figures for 5 months of the year (on the official website of the State service of regulation and supervision of the financial market). The committee provided only general figures of premiums and paid claims for 1Q2020, while detailed statistical data on companies were not published by the regulator.

Total GWP in the first quarter decreased by 6.1% y-o-y to KGS 251.4 million. 44.3% of premiums were collected under voluntary property insurance. Total market paid claims on April 1, 2020 amounted to KGS 38.4 million, which is 16.5% less y-o-y. Speaking about the major classes, KGS 15.4 million were paid under property insurance and KGS 12.4 million - under personal health insurance. Total number of insured events in 1Q2020 decreased by 7.6% (to 1.9 thousand cases) compared to 1Q2019, the committee noted.

* for the following exchange rate:

1 EUR = 90.2474 KGS (as of 01.04.2020)

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