KAZAKHSTAN: investments in the financial and insurance sector declined by more than 11% from Jan-Aug, while insurer assets grew by 8%

For 8 months of this year, investments in the financial and insurance sector amounted to KZT 37.1 billion (-11.5% y-o-y). The largest part, almost 100%, of those investments were provided by owners' equity and retained earnings of the businesses, as Finprom.kz reported.

In total, the volume of investments in all the country's industries the share of the financial and insurance of only 0.6%. This share never exceeded 1% during the last years. Owners' equity and retained earnings are a constant main source of investment. The share of borrowed funds is decreasing. For January-August 2018 it reached only 0.04% (vs. 1.6% a year ago).

At the same time, assets of Kazakh insurers went up by 8% y-o-y for the 8 months of this year and reached almost KZT 1 trillion (KZT 995.2 billion). About 60% of all assets are owned by the TOP-5 insurance companies, according to the data of the analytical service Finprom.kz.

As market statistics show, for the last three years, insurer assets have been growing steadily (as of the end of August 2013, total assets amounted to KZT 524.3 billion, as of the end of August 2016 were KZT 847.6 billion, an additional 61.7%), and the average annual growth rate of insurance assets for the last five years reached 14.9%.

The market leaders in terms of asset size are EURASIA (KZT 249.5 billion), KHALYK-Kazakhinstrakh (KZT 91.8 billion), VICTORY, NOMAD LIFE, and KHALYK-Life. In terms of asset growth rate, the leading company, as of the end of August this year, is ASIA-Life (2 times more y-o-y).

*for approximate calculation

EUR 1 = KZT 424.16 (31.08.2018)

EUR 1 = KZT 202.70 (31.08.2013)

EUR 1 = KZT 379.01 (31.08.2016)

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

Share |

Related articles

KAZAKHSTAN: in 2018 motor insurance generated over 30% of non-life premiums

Based on 2018 result, motor insurance (MTPL and MoD) generated over 30% of non-life GWP. At that, according to the statistics of the National Bank, MTPL segment last year saw a significant concentration growth - TOP-5 generated 66.5% of GWP vs 47.6% in 2017 (total growth of MTPL amounted to 23% y-o-y).

2019-02-07

KAZAKHSTAN: Unit-Linked may become a new market driver

Staring January 1, 2019 Kazakh life insurers may offer Unit-Linked products, charging an insurance fee that will depend on the investment results. Also this year insurance companies may get an investment broker license, as explained the Deputy chairman of the board of Nomad Life, Askar SHAKENOV.

2019-01-25

ON THE MOVE

Supervisory Board Chair NN Group steps down

NN Group announces that Jan HOLSBOER, chair of the Supervisory Board of NN Group, has decided to step down as of the close of the annual general meeting (AGM) on 29 May 2019. The Supervisory Board has elected David COLE as Jan HOLSBOER's successor.

20.02.2019

Peter CLARKE named VP & COO of FAIRFAX

FAIRFAX Financial Holdings Limited announced that Peter CLARKE has been appointed Vice President (VP) and Chief Operating Officer (COO) of FAIRFAX, reporting to FAIRFAX President, Paul RIVETT.

12.02.2019

TOP EVENT

Inclusive Insurance - just a week to the second edition of IIF - CEE & SEE Regional Actuarial Insurance Conference in Skopje

Insurance should be accessible to all social classes, regardless of their wealth & income status. Products offered today are conventional insurance products, largely inspired from the developed markets as "one-size-fits-all" solutions, affordable to only middle- and high-income clients in the Eastern Europe's emerging & developing markets. Inclusive insurance's goal is making insurance available to all, with responsible insurance offers, thus making up for a solution to narrow the insurance coverage gap in the region.

20.02.2019

Latest trends and challenges in the property and motor insurance lines under scrutiny, in Vienna

Property and motor insurance lines are providing for about 75% of the non-life insurance business in the CEE region, but are responsible for over 77% of the claims expenses. As such, although other classes of risks are emerging, for the time being and most probably for a rather long period ahead, property and motor insurance lines will continue to be at the heart of CEE's insurance market architecture.

21.02.2019

FIAR 2019: Register before 28 February and save EUR 400 of the attendance fee

To the satisfaction of its traditional guests, FIAR returns in 2019 to its historical hometown, Sinaia. The forthcoming edition will benefit from the comfort and professional facilities of a new venue, the Conference Center of the International Hotel ****, located in the heart of the beautiful mountain resort. Registration is opened at a significantly discounted early bird rate until 28 February.

10.01.2019

See all