KAZAKHSTAN: insurance sector's assets grow by 4.5% in the first two months of the year

6 April 2023 —
As of March 1, 2023, the assets of insurance (reinsurance) companies in Kazakhstan totaled KZT 2.2 trillion (an increase of 4.5% since the beginning of 2023)/~EUR 4.66 billion, mainly as a result of an increase in income from insurance activities, Allinsurance.kz writes with reference to the data of the Agency of the Republic of Kazakhstan for regulation and development of the financial market.

In the structure of assets, the largest share is occupied by securities - 70.4% (KZT 1.5 trillion), cash and deposits in second-tier banks - 6.0% (KZT 130 billion), insurance receivables - 4.8% (KZT 103 billion).

Liabilities of the insurance sector at the end of February amounted to KZT 1.4 trillion (growth by 4.7% since the beginning of 2023). Equity increased by 2.3% to KZT 808 billion, mainly due to profit received from insurance activities. Net profit in the insurance market in February 2023 amounted to KZT 13.3 billion (KZT 29.1 billion since the beginning of 2023).

Since the beginning of the year, the number of concluded insurance contracts for individuals and legal entities totaled 2,033 thousand units, which is 31.4% more y-o-y. The main growth drivers are civil liability insurance of vehicle owners (contracts increased by 27.5%) and accident insurance (+81.0%).

GWP for the first two months of 2023 amounted to KZT 170 billion, which is 23.0% more y-o-y. The main driver is the class of voluntary property insurance. Compulsory insurance generated KZT 27 billion (+37.1%) since the beginning of the year. The increase occurred mainly in employee accident insurance (+46.9% or by KZT 3.1 billion).

Voluntary personal insurance for January-February 2023 amounted to KZT 49 billion (+6.4% y-o-y). The growth was mainly due to an increase in accident insurance contracts by 215%. Voluntary property insurance since the beginning of this year amounted to KZT 94 billion (+29.7%). The growth was mainly due to an increase in motor transport insurance by 156.8% and property insurance by 11.1%.

Paid claims for January-February 2023 reached KZT 32 billion (+48.1% y-o-y). The increase was mainly driven by increases in property, loan and casualty insurance.

*EUR 1 = KZT 472.22 (28.02.2023)