Financial market regulator PSzAF on Tuesday said it fined two
Austrian-owned companies a combined HUF 33 million for working together
to convince consumers to cancel their life insurance policies and
reinvest the money with them.
Aegondirekt.hu, a unit of insurer Aegon Magyarorszag, had revenue from
premiums of HUF 260 million last year, up 20% from 2011, Aegondirekt.hu
National Economy Minister Mihaly Varga met on Tuesday with chairman of
the Hungarian Insurers Association (MABISz) Anett Pandurics to review
the situation of the insurance business in Hungary, the National Economy
Ministry told MTI.
The evolution of the Hungarian public budget attracted particular attention from the financial analysts in February, as the first payment of several new taxes was due then. The financial transaction tax (FTT) brought in ~EUR 45.7 million (HUF 13.37 billion), about half of the average monthly government's cash flow FTT target for this year. The insurance industry's contribution to this amount was of about EUR 14 million (HUF 4.1 billion).
About three-fourths of Hungarian homes are insured, the highest rate in
the region, according to a survey by Generali PPF Holding.
Hungarian financial market watchdog PSzAF said last week that it fined
CIG Pannonia life insurer a combined HUF 8 million for prudential and
consumer protection shortfalls.
The Hungarian insurance market didn't succeed to maintain the upward trend that seemed to emerge at the end of the first quarter of 2012. Thus, in the next quarters the market volume continuously decreased as compared with the correspondent periods of the previous year, although the appreciation of about 6.5% of the Hungarian currency in relation to the Euro somehow flattened the downward curve. Thus, 2012 ended with a 6.75% GWP decrease in the local currency, while the figures denominated in euro showed a quasi steady evolution (a -0.4% GWP change as compared with 2011).
Until the half of February snow, ice and freezing rain caused many
damages not only in transport but also in property. Generali Insurance
company in Hungary reports almost 26 000 claims in car and property
insurance of total value more than HUF 2,7 billion for the first two
month of 2013.
Last week a medium strength earthquake was near Jaszbereny, in Heves town and around its neighborhoods.
In Hungary, legislation introducing an insurance premium tax is effective 1 January 2013.
After the results of the first half of 2012 showed a worrisome decrease, the Hungarian insurance market seems to recover to a certain extent, according to the market results denominated in the European currency. Thus, although it maintained a downward trend, the 3Q2012 results appear to show signs of a flattening downward curve. GWP amounted to EUR 2.06 billion, 2.45% y-o-y less, as compared with the over 12% fall recorded in 1H2012. Yet, the improvement is mostly due to the HUF 8% appreciation, while in local currency, the total GWP amounted to HUF 586.08 billion, 5.26% y-o-y down, maintaining a quasi constant decreasing pace.
The Hungarian government has approved the introduction of a new premium tax which will come into force on 1 January 2013. According to the global fiscal consulting company FiscalReps, the new tax applies to gross premiums at the rate of 15% on comprehensive "Casco" policies (EU classes 3 to 6) and 10% "accident and property" classes. We understand that the new tax replaces the Fire Brigade Tax but not the 30% tax on compulsory motor third party insurance which remains in force.
Members of the Hungarian Association of Insurance Brokers had 14.3
billion in revenue from commissions in 2011, association secretary
general Anna Palos Turczi told a conference in Siofok on Sunday.
Among regional competitors the Hungarian insurance market has been
through the biggest setback since 2010, insurer Aegon's regional
director Andras Kepecs has said in an interview with website index.hu.
Vienna Insurance Group intends to expand into Hungary. The Eastern neighbor country is the favorite growth market, the Austrian insurance group said. VIG reaffirms to be highly interested in further acquisitions, CEO Peter Hagen explains.
Once again, the strong depreciation of the Hungarian Forint, has put a dramatic accent on the Hungarian insurance markets' negative dynamic, translating the 4.72% y-o-y nominal decrease registered in local currency by the end of 1H2012, into a double digit falling rate of 12.19% when denominating the market results in EUR. Thus, the overall underwritings of the Hungarian insurers totalized EUR 1.42 billion, EUR 197 million less than in 1H2011.
Hungarian insurance market revenues increased by 1.96% to HUF 238.98
billion (EUR 808.46 million) in the first quarter of 2012, compared to
the same period of last year, according to Hungarian Financial
Supervision Authority (PSZAF). On the other hand, in 1Q2012, insurers
paid out claims amounted HUF 163.62 billion (EUR 553.51 million), 19.96%
more than a year earlier.
Violeta CIUREL, CEO AXA Life Insurance Romania will also take over, starting July 1st, as President of AXA Insurance Hungary, further coordinating both Easterns subsidiaries of the French group. Jacques MAIRE, the current President of the Hungarian company will return to Paris, after a three years mandate. "I am pleased and honored by this appointment. Hungary is a challenging market, but I am very motivated and I also believe that opportunities and successful business always arise if you're affraid of discipline and systematic work. I trust my new colleagues in Hungary have these skills and our joint efforts will pay off", said Violeta CIUREL.
Vienna Insurance Group wants to expand in Hungary, its outgoing chief executive told a magazine, predicting his successor would keep generating record profits.
The Hungarian Government intends to introduce starting 2013 an unified tax on insurance companies, by merging and transforming taxes previously levied on insurance companies, as part of its Szell Kalman Plan 2.0, a package of new reform measures. The estimated financial outcome of this operation is of HUF 15 billion per year. Thus, profitability of Hungarian insurers will be further affected, probably even in a stronger manner than in the current context.