CIG Pannonia Life Insurance raised capital by about EUR 4.63 million

The board of CIG Pannonia Life Insurance decided on 28 November to raise capital at its general insurance unit by HUF 1.5 billion (~EUR 4.63 million) and modify the unit's dividend policy, Hungarian news agency MTI reports.
The capital raise will take place by issuing 30 CIG Pannonia First Hungarian General Insurance (EMABIT) shares at a nominal value of HUF 50 million per share. The company board also decided that EMABIT would pay full after-tax profits as dividend, as long as its solvency capital requirement remains over the 160% threshold.
CIG Pannonia ended Q3 with a HUF1.561 billion after tax profit figure and premiums revenues of over HUF 17 billion. The profit per share for the three quarters was of HUF 19.
For life insurance contracts sold this year, the performance of CIG Pannonia's own sales network constitutes 29 per cent, while the share of the independent broker channel was 39 per cent, the banking channel's 22 per cent, and that of other business development was 10 per cent of new sales. Channel diversification continued in the life segment. After the development of the banking sales channel, call center sales have been launched in cooperation with a significant sales partner.
Portfolio clearance continued in the non-life segment, as well as the run-off of the retail Casco portfolio. This explains the HUF263 million decrease in the net portfolio development during the first three quarters. In the first nine months of the year, the non-life segment reached a HUF 567 million profit after tax, which is an excellent result, similarly to that of previous quarters.
In 2018 the corporation's equity increased from the 2017 year-end HUF9.015 billion to HUF16.803 billion, i.e. by 86%. The Solvency II capital adequacy of CIG Pannonia's life insurance segment is 349%, while it is 176% in the non-life insurance segment, so it complies with the minimum 150% capital adequacy level expected by the Supervisor.

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