Non-life insurers' assets increased by 4.7% vs 7.2% a year earlier, while their share in the insurance market assets decreased from 43% to 39%. This reflects an ongoing redistribution of the insurance sector structure in favor of life insurance companies, assets of which are growing significantly faster.
At the same time, concentration within the non-life segment decreased: the share of the eight largest players fell to 91.7% of non-life assets (vs 92.3% a year earlier) amid increased competition.
Non-life insurers' liabilities decreased by 0.4% after growing by 4.7% the year before, primarily due to a decline in liabilities for incurred claims (-13%, or KZT 40.0 billion) and the best estimate of cash flows (-4%), which may indicate a partial normalization of previously accumulated insurance liabilities following increased payments in previous periods.
GWP growth also slowed significantly, to 3.9% vs 14.3% the year before, with mixed dynamics across different LoBs. Paid claims increased in line with premiums, by 4.9% after a 45.2% jump the year before.
Net profit grew from KZT 69.3 billion to KZT 83.7 billion supported by increased insurance revenue from previously concluded contracts and changes in the structure of insurance income and expense recognition following the implementation of IFRS 17.
In the first half of 2026, the non-life insurance market transitioned to a more moderate growth model. After high growth rates of the previous period, business expansion slowed, and the premium structure began to change. Changes in the asset structure also indicate a more cautious balance sheet management model: investments in liquid and short-term instruments are increasing amid high money market yields, while certain market and reinsurance positions are being reduced. At the same time, a reduction in liabilities coupled with increased capital maintains the sector's financial stability. Financial results remain positive, but the increase in total profit is not accompanied by an increase in the average return on equity (9.3% vs 9.2% a year earlier). Transition to more flexible regulation of compulsory insurance, development of infrastructure and sales channels, and expansion of insurance coverage could create new growth drivers for the sector. However, in the second half of the year, the trend is likely to remain moderate amid cooling retail lending and continued high cost of insurance losses, the source writes.
* 1 EUR = 554.03 KZT (June 30th, 2026)
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