Life insurance assets increased to KZT 1.9 trillion (+13.5%)/~EUR 3.12 billion and make up 55.1% of the entire insurance market (vs 49.0% a year earlier).
Total liabilities of life insurers rose to KZT 1.4 trillion (+10.7%), with a significant part of this increase provided by the three largest market players. It is noted that concentration in the life insurance sector remains high: 73.8% of assets are accumulated in three companies - Nomad Life, Halyk-Life and FFLife.
The net profit of the sector amounted to KZT 88.0 billion (vs KZT 63.1 billion a year earlier) due to a significant increase in insurance revenue (+KZT 30.2 billion), securities remuneration (+KZT 26.5 billion) and income from insurance (+KZT 19.4 billion), which reflected growth of the operating and investment income.
Considering not only the current premium growth (+25.9%), but also structural factors - an increase in the number of insured persons, introduction of new products, a favorable regulatory environment and active promotion through digital channels - life insurance premiums by the end of 2025 may exceed KZT 1 trillion, the review says.
In January-June 2025, the assets of non-life insurance companies increased by 7.2% (vs a 10.3% increase a year ago). The growth in non-life insurers' assets slowed down due to a more accelerated growth in paid claims over premiums and a reduction in investment income, according to a review by the Association of Financiers of Kazakhstan.
The slowdown in the growth of non-life insurers' assets has led to their share in the insurance market being reduced to 44.9%, from 51% a year earlier. At the same time, the key role of the top 8 players remained: their share in the sector’s assets is 91.7%.
Non-life sector liabilities grew by 4.7%, mainly due to an increase in liabilities for the remaining part of insurance coverage (+KZT 45 billion) and settlements with reinsurers (+KZT 4 billion). This was facilitated by an expansion of the insurance portfolio, growth in sales of long-term policies, and intensification of reinsurance activities to diversify risks and comply with regulations.
The profit of non-life insurers increased by 12%, to KZT 69.3 billion from KZT 61.2 billion in 1H2024, supported by growing income from insurance activities (+KZT 62.2 billion), despite a decline in income from investment activities (-KZT 16.6 billion) driven by revaluation of foreign currency and overall increase in expenses (+KZT 35.5 billion), mainly due to an increase in insurance payments, the Association writes.
* 1 EUR = 609.58 KZT (June 30th, 2025)
7165 views
