No loss of momentum in the life insurance sector

By Yiannis Seitanidis

The life insurance sector maintains its momentum and the overall premium generation rate remained in double digits in 2021.

According to the latest data from the Association of Cyprus Insurance Companies, the production of gross premiums increased at a rate of 10.5 per cent in the first nine months, when in the first half of the year production had recorded a 10.3 per cent increase.

The dynamic growth in 2021 of the Cypriot insurance market follows a mild year. In the first nine months of 2020 compared to the first nine months of 2019, premium production had grown at a rate of 2.8 per cent. That is, the growth rate almost quadrupled in one year.

In absolute terms, life insurance premium production in the first nine months of 2021 amounted to €323.358 million, up from €292.503 million in the corresponding period of 2020.

At the corporate level, the trio leading the market (Eurolife, CNP Cyprialife and Universal Life) is not differentiated and a number of companies managed to significantly increase their business, above the average.

In particular, Allianz achieved the largest increase in premium products in the first nine months, with a change of 47.2 per cent, but in absolute terms, the company still has a zero share, with production at just €15,894. Allianz is trying to reposition itself in the Cypriot market.

Not unnoticed is the significant change in production of Ancoria, an old name in the Cypriot market, with a growth rate of 20.4 per cent. Ancoria increased its share to 5.4 per cent from 5 per cent.

Universal Life recorded a rise of 18.5 per cent and increased its share to 14.7 per cent from 13.7 per cent.

Eurolife, a subsidiary of Bank of Cyprus, the company with the largest share, expanded its market share to 28.5 per cent from 27.5 per cent thanks to a 14.3 per cent increase in production.

Altius also recorded a 14.3 per cent increase in production (5 per cent market share in the first nine months of 2021 from 4.8 per cent in the first nine months of 2020).

Metlife closes the list of companies with double-digit growth in their production, with +12.8 per cent in the first nine months of 2021 (7.1 per cent market share from 6.9 per cent).

Lower, below the market average growth, were National Insurance (+7.7 per cent, share 3.3 per cent from 3.4 per cent), CNP Cyprialife (+4.25, share 24 per cent from 25.4 per cent), Hellenic (+1.8 per cent, share 6.4 per cent from 6.9 per cent) and Prime (+0.2 per cent, share 5.6 per cent from 6.2 per cent).

Minerva was negative, with a 6.3 per cent drop in production (0.1 per cent market share).

Adding the health business to the life insurance companies’ premium production, the growth in total premium production in the first nine months of 2021 is limited to 5.6 per cent, but remains significantly higher than the 1.2 per cent change in 2019/20.

New business increased by 23.6 per cent to €75.584 million. The largest share in new business was held by Eurolife with €25.743 million (34 per cent), CNP Cyprialife with €16.773 million (22.2 per cent) and Universal Life with €13.757 million (18.2 per cent).