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 www.xprimm.com and download the 1H2017 Hungarian insurance market statistics.

Related articles

HUNGARY: CIG Pannonia to merge MKB insurers into its units

Hungarian insurer CIG Pannonia announced it will merge into its units (CIG Pannonia Life Insurance and CIG Pannonia First Hungarian General Insurance) the two MKB insurers recently acquired: MKB Life Insurance and MKB General Insurance.

2017-04-20
photodune-3834701-laughing-girl-xs

STATISTICS: Hungarian market leaders in 2016

The thirty active members of MABISZ (the Hungarian insurance association) posted aggregate FY2016 GWP of HUF 920.6 billion (~ EUR 2.9 billion), up by 5.1% y-o-y, according to the association's website.

2017-04-13

HUNGARY: MKB to sell its operations to CIG Pannonia

Hungarian insurer CIG Pannoinia announced that signed an agreement with Versicherungskammer Bayern, through which CIG Pannoinia Life Insurance and CIG Pannonia First Hungarian General Insurance would acquire majority stakes MKB Life Insurance and MKB General Insurance.

2016-10-13

STATISTICS: HUNGARIAN insurers' GWP up by 2% in Q1

Hungarian insurance market totaled HUF 236.9 billion (EUR 754 million) at the end of March 2016, 1.84% less y-o-y, according to the statistics published by the Central Bank. The volume of paid claims by insurers remained stable at HUF 126 billion (EUR 400 million).

2016-06-23

ON THE MOVE

TOP EVENT

The 9th International Istanbul Insurance Conference started today in Istanbul

In emerging markets like Turkey, there can be a significant difference between the insured and total insurable losses. Parametric insurance is a smart way to close this protection gap. While the traditional products cover an insured loss, parametric products provide financial protection for various expenses from financial liabilities to contingent loss of profit which, in return, decreases the economic loss burden following a CAT event.

04.10.2017

61st "Rendez-Vous de Septembre" ends today in Monte Carlo: review

The 61st edition of the "Rendez-Vous de Septembre", the annual traditional meeting of reinsurers ends today in Monte Carlo. The Nat Cat insurance protection gap, as well as the global insurance market readiness to deal with the increasing complexity of the cyber risks were among the most debated topics.

14.09.2017

See all