GWP growth was about 16%, which is within the baseline scenario of S&P Global Ratings and is higher than the indicators of non-life companies in Kazakhstan. Return on equity (ROE) and return on assets (ROA) ratios were about 39% and 7% in 2020, respectively, higher than the average ROA and ROE of life insurance companies over the past three years – 30% and 3.4%, respectively. Results of life insurers were possible due to insurance and investment activities, and in 2021 the trend towards double-digit GWP growth (over 15%) will continue underpinned by the regulatory changes, including those related to legislative amendments on pension annuities, already introduced tax benefits for insureds, improvement of the macroeconomic situation, increased purchasing power of individuals and revival of economic activity.
Leading companies to maintain their positions in the market in 2021, but the concentration of the TOP-3 will decline (72% in 2019, 70% in 2020), as other players are expanding their market shares. S&P Global Ratings believes that the life insurance market has growth potential – insurance penetration is still low (less than 1% of GDP), companies are taking measures to raise awareness of insurance products, life insurance products have a higher investment return compared to bank deposits. The situation remains more favorable for life insurers than for the non-life sector, and the majority of Kazakhstani insurance companies, who have the agency’s ratings, are well placed to withstand the impact of the COVID-19 pandemic, thanks to their capital stock and liquidity.