KAZAKHSTAN: Annuities and corporate products played a key role in life insurance in the first half of the year

27 August 2026 — Marina MAGNAVAL
In the first half of 2026, the life insurance market in Kazakhstan continued to expand significantly faster than non-life: life insurers' assets grew by 19.9%, increasing their share of total insurance sector assets from 57% to 61%, according to a review by the analytical center of the Association of Financiers of Kazakhstan (AFK).

Securities continue to form the bulk of life assets, increasing by 14%. Total liabilities grew faster than assets, rising by 24.9%. Total equity of life insurers saw moderate growth (+4.0% vs +25.9% a year earlier), reflecting more restrained financial performance amid rapid business expansion and declining net profit.

GWP growth accelerated to 30% from 25.9% a year earlier but became even more concentrated in specific products. Annuities were the main driver, with premiums more than doubling (+101.3%). As a result, this product's share in life insurance increased to 63% from 40% a year earlier.

Life paid claims accelerated (+67.9%), with annuity insurance contributing 75% of the total rise in payments amid gradual ‘maturation’ of the accumulated long-term portfolio. As a result, the payout-to-premium ratio increased from 13.6% to 17.6%. A rise in paid claims was accompanied by an increase in both the number of payments (+33.8%) and their average amount (+25.6%), which puts additional pressure on financial results.

Net profit for the sector decreased to KZT 74.5 billion (-15.3%) caused by a decrease in insurance revenue (-10.6%) and an increase in insurance financial expenses (+52.2%), coupled with an increase in long-term insurance liabilities. The pressure was partially offset by growth in investment income (+64.3%), the review says.



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