STATISTICS: HUNGARY, 1H2017: Insurers' GWP up by 6.16% while the market technical result decreased by 13.73%

Hungarian insurers first half GWP was up by 6.16% y-o-y to HUF 485.81 billion (EUR 1.57 billion), according to the most recent market figures published by the National Bank of Hungary (MNB).

Life insurance GWP increased by 3.19% to HUF 228.09 billion, while non-life GWP increased by 8.93% to HUF 257.75 billion, as the half year figures reveal.

By the end of the first half, the property insurance segment generated GWP of about HUF 94.60 bilion, of which - household insurance HUF 58.60 billion. In case of motor insurance subclasses - the value of MTPL GWP increased by more than 15% to over HUF 82 billion, while in case of MoD the gwroth rate was little moderate (+6.35% y-o-y) to nearly HUF 39 billion.

At the end of June, the number of insurance contracts rose by 3.7% y-o-y to 13.21 million. There were 2.38 million life insurance contracts (about 15.66 thousand more), and 10.82 million non-life policies, a 461 thousand rise.

Per business lines, at the end of the analysed period, there were 622.42 thousand active traditional life policies, 654.16 thousand - life unit-linked or index-linked contracts, 5.03 million active MTPL policies (vs. 4.79 million a year before), 853.27 thousand - MoD polices (vs. 820.37 thousand) and 3.12 million policies related to the fire and damage to property of individuals class, of which 668.46 thousand - with credit coverage.

In terms of damages, by the end of June 2017, the value of incurred claims amounted to HUF 181.37 billion for life insurance contracts (+8.96% y-o-y) and HUF 111.41 billion for non-life policies. Overall, in 1H 2017, insurers thus paid out a combined HUF 292.79 bilion of claims, up by 12.88% y-o-y.

According to the MNB published statistics, the aggregate market gross profit was HUF 34.13 billion (vs. HUF 34.66 billion), while the value of net profit was up by 0.88% to HUF 32.13 billion. The technical result decreased by HUF 3.54 billion (or by -13.73% y-o-y) to HUF 22.24 billion.

MNB pointed out in a statement that the capital adequacy ratio calculated at the sector level according to the Solvency II regulatory framework, which entered into force on 1 January 2016, "continued to be stable, as seen in previous periods".

MNB mentioned that "the sector-level capital adequacy ratio was 224,3%, reflecting a slight increase of 1.8 percentage points relative to the previous quarter, and an increase of 11.4 percentage points relative to 2016 Q2. It significantly exceeded the requirements of 100% prescribed by law and the prudentially required 150% under the MNB's statutory provision recommendation, increased by a volatility capital puffer. Nearly three-quarters of insurance companies (20 institutions) have their solvency margin ratio, calculated from eligible own funds and the solvency capital requirement, above 200%".

At the end of June there were 27 active insurers on the market, including eight life insurance companies, 10 non-life insurers and nine composite insurers.

Access and download the 1H2017 Hungarian insurance market statistics.

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