KAZAKHSTAN: insurers VICTORY and NURPOLICY started merger
According to the portal allinsurance.kz this form of reorganization was caused by some problems of NURPOLICY, among them: undercapitalization, no insurance profit growth in 2017, increase of expenses and year-end loss (loss of KZT 204 million vs small profit of KZT 26 million a year before). Portfolio of NURPOLICY according to 2017 result amounts to KZT 3.7 billion, 90% of which is MTPL and this leads to high loss ratio. 78% of VICTORY's portfolio is property insurance, which is much more profitable and has smaller loss ratio. Stagnation of the local insurance market during some years makes insurers revise and correct their development strategies, in particular by consolidation.