Review of the Kazakhstani insurance market - NBK

/IRBIS, May 8, 01/ - National Bank of Kazakhstan, in its press release, devoted to current market situation, gave a description of the country's insurance market. As it is well known, now insurance companies are considered a young and growing institutional investors on the Kazakhstani financial market. Great hopes are laid upon their development, including the participants of the pension reforms. For this reason, the condition of the insurance market attracts greater interests of both regulatory bodies and other entities of the financial market. By the data of the National Bank, as of May 1, 01, there are 40 insurance companies with the licenses (as of Jan 1, 97 - 65, as of Jan 1, 98 - 68, as of Jan 1, 99 - 71, as of Jan 1, 00 - 70, as of Jan 1, 01 - 42). These figures include four companies with foreign participation (Almaty International Insurance Group CJSC, AIG Kazakhstan CJSC, Terra CJSC, Ecopolicy CJSC) and one life insurance company (Dynasty life insurance company CJSC). Among them the following have met the law requirements, including capitalization, insurance reserves placement and formation requirements - 30 companies. Of these 30 companies 21 have new licenses. Nine companies with old licenses will be issued new ones. The National Bank informs that the matter on the replacement of license to remaining 10 insurance companies will be settled when they will comply with all requirements of the insurance law, including capitalization and (or) insurance funds placement, as well as after the reviewing current financial and statistical reports. From the beginning of the year 7 insurance companies got their licenses suspended for different terms. The court ruled to liquidate 4 of them by force. One company was allowed to liquidate itself voluntarily. The Kazakhstani courts are examining the cases on other 18 companies. Following table contains the insurance market data of the National Bank (in mln KZT). ----------------------------------------------- QI QI QI Ratio PRIVATE 1999 2000 2001 -------------------- ------- ------- ------- Shareholders' equity 1,632.0 2,674.2 4,883.7 Insurance premiums 1,243.2 2,145.9 2,479.1 Insurance payments 349.2 291.5 487.1 ----------------------------------------------- The amount of highly liquid assets of insurance companies (assets, which are in deposits in the second tier banks) as of Apr 1, 01 were at about KZT3,398.9 mln. Now, the National Bank distinguishes 5 types of mandatory insurance, which have specific terms based on the law: - Mandatory insurance of the owners of the vehicles; - Mandatory insurance of the obligations of the transporter to the passengers; - Mandatory insurance of private notaries; - Mandatory insurance of agricultural production; - Mandatory insurance of the judges and their property. The insurance terms for these types of insurance are set by normative legal acts of the Government of Kazakhstan. INSURANCE COMPANIES WITH NEW LICENSES 1. Almaty International Insurance Group OJSC; 2. Atlanta-Polis CJSC; 3. ATF Polis CJSC; 4. BTA OJSC; 5. Valut-Tranzit-Polis CJSC; 6. Glorya S CJSC; 7. Eurasia OJSC; 8. Kazakhinstrakh CJSC; 9. KK Kazakhmys CJSC; 10. Kazkommerts-Polis OSJC; 11. K-ASKO CJSC; 12. Kommesk-Omir OJSC; 13. Dynasty life insurance company; 14. Laton-Polis CJSC; 15. Medeu insurance company CJSC; 16. Oil insurance company; 17. Terra CJSC; 18. TransOil JSCOT; 19. Tumar CJSC; 20. Temir At CJSC; 21. EcoPolis CJSC. INSURANCE COMPANIES WITH OLD LICENSES (NEW LICENSES WILL BE ISSUED) 1. AIG Kazakhstan CJSC; 2. Viktorya CJSC; 3. Karagandy insurance company OJSC; 4. KBS GARANT CJSC; 5. London-Almaty Insurance Company CJSC; 6. NASKO-KAZAKHSTAN OJSC; 7. TSASO OJSC; 8. SAYA OJSC; 9. Transportation insurance company CJSC. INSURANCE COMPANIES WITH THE LICENSE TO BE REPLACED 1. Aviatrek-Polis OJSC; 2. VKO ASKO CJSC; 3. West-Kazakhstan insurance firm OJSC; 4. KNK Interteach CJSC; 5. Kazagropolis NSIC; 6. Komek CJSC; 7. Energya JSCOT; 8. Mercur Reward OJSC; 9. Pana Insurance: 10. Promyshlennaya strakhovaya gruppa OJSC.