KAZAKHSTAN: from January to June, insurer profit decreased 20% y-o-y; asset growth exceeded 12%

19 August 2019 —
In the first half of 2019, local insurer assets grew by 12.8% y-o-y, to KZT 1.1 trillion (~EUR 2.54 billion). However, in the background, profit dropped by 20% to KZT 35.5 billion (~EUR 81.97 million), Allinsurance.kz reports.

Of all the companies on the market during the period, only 8 insurers showed positive profit growth. The declining profit trend was recorded mainly among non-life insurers. For example, the profit of the market leader in terms of GWP, EURASIA, decreased by 27%, and the largest decline was demonstrated by Kommesk-Omir (-369%). Impressive profit growth was achieved by Halyk (+270%), Nomad Insurance (+246%) and Halyk-Life (+169%).

In the first half of 2019, insurers also increased their retention rate to 82% (vs 75% two years ago), meaning they retained KZT 209 billion out of total KZT 255 billion in GWP. As the key factors here, market specialists underline growing equity and portfolio diversification that allow a reduction of the volume of risks ceded in reinsurance, Allinsurance.kz wrote.

*1 EUR = 433.08 KZT (June 30th, 2019)