STATISTICS: KAZAKHSTAN, 3Q2020: Over 60% of GWP growth was provided by life insurers

12 November 2020 —
STATISTICS: KAZAKHSTAN, 3Q2020: Over 60% of GWP growth was provided by life insurers
During the first three quarters of 2020, the GWP volume in Kazakhstan insurance market increased by 8.5% y-o-y, to KZT 411.3 billion (~EUR 819 million*), according to data published by the country's National Bank. At the same time, over 60% of the market GWP growth was provided by life insurers, their share in the market premiums increasing by 2.1 percentage points to 38.5%.

As of October 1, 2020, 19 non-life insurance companies and 9 life insurance companies operated in the insurance market of Kazakhstan. Of all life insurers, only 3 companies recorded a negative trend in GWP collection, while out of 19 non-life insurers, 11 companies saw negative dynamics.

Paid claims for the period increased slightly (+1.48%), which can be explained by a decrease in economic activity due to quarantine restrictions. It should also be noted that the share of paid claims in market premiums decreased by 2% y-o-y.

Profit of insurers before tax amounted to KZT 110.7 billion at the end of the third quarter, which is almost 52% more than in the same period of 2019 and 16.8% more than for the entire 2019. The main source of insurers' profit (KZT 100.1 billion) is investment activity thanks to revaluation of foreign currency assets, while the profit from underwriting amounted to KZT 9.8 billion (-39.7% y-o-y).

The share of TOP-3 insurers in market GWP slightly decreased to 47.34%. EURASIA remains the leader with a share of almost 20% of total market portfolio, followed by KHALYK and KHALYK-Life.

* for an exchange rate of 1 EUR = 502.14 KZT (September 30th, 2020)

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