In January-March 2025, against the backdrop of continued high demand for life insurance products supported by legislative norms, double-digit growth in household incomes (+10.6%) and a gradual increase in financial literacy, there was an increase in all key indicators of the sector, except for net profit, according to a report, published by the Association of Financiers of Kazakhstan.

Life insurers' assets increased to KZT 1681.0 billion (+3.6%)/~EUR 3.10 billion and accounted for 56.5% on the insurance market (vs 44.9% in January-March 2024). As of April 1, 2025, in the structure of sector assets, securities amounted to KZT 1.4 trillion or 83.3% of the total life assets, cash and deposits – KZT 129.7 billion or 7.7%.

Concentration in the life insurance sector remains high: 73.7% of assets belong to three large companies: Halyk-Life, Nomad Life and FFLife.

The growth of life insurance premiums (+38.6%) significantly outpaced the non-life segment (+6.8%). Thus, in the first quarter of 2025, life insurance increased by KZT 61.5 billion (+38.6%) and reached KZT 220.8 billion. Life GWP growth was mainly supported by voluntary personal insurance products. The dynamics of life paid claims was slightly lower than premiums – paid claims grew by 37.7% to KZT 32.1 billion, mainly due to life and annuity insurance products. Against the background of more accelerated growth of premiums over paid claims, their ratio at the end of the first quarter of 2025 slightly improved from 14.5% to 14.4%.

It is noted that the sector’s net profit was significantly lower due to a drop in investment income and an increase in certain expenses. The average return on equity of the sector was 2.8% vs 4.0% for the same period in 2024, the Association added.

*1 EUR = 542.08 KZT (March 31st, 2025)