The assets of life insurers increased to KZT 1.6 trillion (+50%, ~EUR 2.93 billion), and now account for 54% of the total assets of the entire insurance market. A year earlier, it was only 45%, the Association of Financiers of Kazakhstan (AFK) writes in its report.
Despite an increase in the number of participants (BCC Life was established in 2024), concentration in the life insurance sector remains high: the top 5 by asset size account for 88% of the total assets of the sector (vs 86% a year earlier).
Life GWP in 2024 almost doubled (+93%), mainly due to increased demand for voluntary personal insurance products. Pension annuity insurance and accident insurance saw triple-digit growth. At the same time, paid claims increased by 62%, which was mainly driven by compulsory insurance. The GWP rise compared to paid claims led to an improvement in their ratio by the end of 2024 to 11.4% from 13.7% at the end of 2023.
The sector's net profit grew significantly last year (+47%) due to an increase in insurance revenue, a positive revaluation of assets due to weakening of the tenge and received remuneration on securities and deposits. Against the backdrop of increased profits, total equity of life insurers increased to KZT 304 billion (+22%), and its market profitability improved to 28% from 21% at the end of 2023.
It is noted that with a small number of products, life insurance now occupies more than half of the insurance market. In 2024, the number of life insurance contracts exceeded 12.5 million units, which is significantly higher than the number of non-life insurance contracts (10.5 million units), and exceeds last year's life insurance result (7.1 million contracts at the end of 2023), AFK writes.
* 1 EUR = 546.47 KZT (December 31st, 2024)
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