GWP saw positive dynamics thanks to the recovery in economic activity and an increase in demand for life insurance products (+70%). The ratio of premiums to paid claims on the market is about 13%, while for life insurers this figure is at 8%. At the same time, in terms of paid claims by types in the period under review, life insurers accounted for 41%.
Also, according to the AFK's review of the insurance market of Kazakhstan for the first quarter of 2021 based on the NBRK (National Bank) data, the market, compared to last year, shows an increase in income by 8%. At the same time, about 57% of the income is generated by life insurers.
The increase in reserves for insurance claims and operating expenses reduced net profit of the insurance market by 41%, due to which the weighted average return on assets (RoAA) of the sector decreased from 4.4% in 1Q2020 to 2.1% in 1Q2021 and return on equity (RoAE) - from 9.7% to 5.0%. However, there are companies on the market with return on equity above the market's level - Nomad - 13.2%, Freedom Finance Life - 11%, Nomad Life - 10.7%, ESK - 8.5%, KM life - 8.3% and Eurasia - 8%.