Insurance businesses report $17.7 million in losses in Kazakhstan

In November 2023, many insurance companies in Kazakhstan reported losses / Photo: Shutterstock and Freepik

According to the Agency for Regulation and Development of the Financial Market, Kazakhstani insurance businesses reported $17.7 million in losses in November 2023 compared to $16.6 million in losses in October. As the agency noted, the revaluation of currency assets was the key reason for the losses.

The National Bank of Kazakhstan also issues quarterly reports on the insurance sector. As the regulator reported, over the period from July to September, insurance companies earned $412.3 million or $340 million under the International Financial Reporting Standards (IFRS). Life insurance and non-life insurance accounted for $163 million and $199 million, respectively under the IFRS.

As of December 1, 2023, insurance companies possessed $5.2 billion worth of assets, which is lower than in October by 0.2%. (This data correlates with the data by the National Bank for the first three quarters of 2023.) Starting at the beginning of the year, the sector reported an 18.2% increase. In November, the sector’s capital declined by 1% to $1.9 billion ($1.980 billion as of October 1, according to the National Bank), although over the period from January to November 2023, this rate reported a 16% increase. In terms of liabilities, the industry reported a 0.3% increase in this indicator to $3.2 billion. (There are no similar statistics by the National Bank). Over the first eleven months of 2023, liabilities of the insurance sector rose by 19.4%.

Also, in November, insurance businesses reported a 1% increase in the number of insurance contracts to 1.5 million compared to a 2.3% decline in October. In general, insurance businesses signed 13.9 million contracts over the first eleven months of last year, which is a 34.4% increase over the same period of 2022.

Moreover, the insurance sector reported a 17% increase in collected insurance premiums: $178 million in November versus $152 million in October. Over the first eleven months of 2023, this rate increased by a quarter and reached $1.9 billion.