The asset reduction was driven by a decline in the value of the securities portfolio (-5.0%), revaluation of foreign currency assets, and deterioration in the premium-to-claims ratio.
The segment concentration decreased: the share of eight major players fell to 91.9% of non-life insurance assets (previously 92.3%), driven by increased market competition. Non-life insurers' liabilities decreased by 6.2%, following a 1.6% increase a year earlier. The liability-to-asset ratio improved from 43% to 40%, maintaining a comfortable margin of financial stability for the sector.
GWP in the first quarter decreased by 2.9%, vs a 6.7% increase a year earlier. The main contributor to the decline was accident insurance, where premiums fell by 94%. Additional pressure on the segment was exerted by an overall decline in new retail loans (-4.4%), which also negatively impacted related insurance products.
Non-life paid claims maintained their upward trend, growing by 24.2% vs a 35.0% increase in the same period in 2025. The key drivers were claims for motor vehicle liability insurance (+27.7%) and property damage insurance (+48.5%). The increase in MTPL payments is likely related to rising costs of vehicle repair, spare parts, and servicing costs amid high inflation and the market's dependence on imported components, while the increase in property damage insurance payments may reflect rising real estate prices.
As a result, the payout-to-premium ratio increased to 34% from 27%, indicating a gradual increase in the loss ratio of the non-life portfolio and creating preconditions for a revision of rates in certain segments. The most significant pressure remains in compulsory insurance, where the loss ratio reached 71% by the end of 2025. At the same time, despite a GWP decline and a rise in claims, non-life insurers' net profit increased significantly—from KZT 16.7 billion to KZT 34.6 billion thanks to improved insurance revenue from previously concluded contracts and changes in the recognition of insurance income and expenses following implementation of IFRS 17.
Overall, the dynamics of non-life key indicators were relatively subdued amid stricter regulation, a cooling in retail lending, and high costs of insurance claims, the source writes.
* 1 EUR = 553.24 KZT (March 31st, 2026)
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