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.

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.


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.



New Head of Investor Relations at AEGON

Jan Willem WEIDEMA has been appointed as the new Head of Investor Relations at AEGON. He succeeds Willem van den BERG who has led the Investor Relations team over the past 7 years.


Robin SPENCER to leave NN Group

NN Group announced that Robin SPENCER will step down as Chief Executive Officer of International Insurance and member of the Management Board of NN Group, effective 1 June 2018.



"Insurance and Pensions reloaded" - the 7th EIOPA Annual Conference

The 7th EIOPA Annual Conference takes place today in Frankfurt am Main, Germany. A review of the current supervisory covergence issues and of the prospects of the Pan European Personal Pension Product are on the event's agenda, together with analyzing the ways in which regulation may enable innovation.



"IIF2017 - Insurance in the DIGITAL World" Conference took place in Vienna

"IIF2017 - Insurance in the DIGITAL World" conference brought together in Vienna well-known insurance professionals from all over the world who analyzed the latest digital trends in the industry, taking into account the fast digitalization of the financial services providers' world, in particular in the insurance field, which is creating both huge opportunities and strong challenges for the players.



Croatian Insurance Days Live

On 9 November has started in Opatija, Croatia, the 2017 edition of the Croatian Insurance Days Conference, the traditional meeting of the Croatian insurance top professionals with their European peers. XPRIMM Publications are supporting the event as Media Partners.



The 2017 Baden Baden Meeting: Short recap

The Baden-Baden meeting, one of the key events in the reinsurance calendar, has just set the final point of this year's edition. XPRIMM Publications have reported from the meeting's premises. Let's recap!


Baden Baden Headlines 3: CEE insurance markets are attractive for reinsurers

Central and Eastern Europe insurance markets are an important source of business for Lloyds, total premium income from this region increasing by EUR 64 million since 2010, pointed out the Lloyd's representative in a seminar dedicated to CEE insurance markets: "We are seeing strong growth from Czech Rep, Poland, Slovakia and Ukraine. At the same time are some contractions from Russia, Bulgaria, Romania and Hungary due to challenging trading conditions as political implications and other sanctions".


Baden Baden Headlines 2: cyber insurance market set to grow under regulatory presure; nat cat events more frequent, but losses per event are decreasing

Asian insurance market, especially the Indian market - are considered to be "the new El-Dorado" of the global re/insurance market, with rapidly expanding markets and an dynamic environment: "Indian P&C re/insurance markets are expected to grow at a pace of 15% per annum", according  to Victor PEIGNET, CEO, Global P&C, SCOR SE. The French -based reinsurer setted-up its Indian branch in 2016, after the authorisation from the local market authority - IRDAI. India's re/insurance market has become more attractive for global companies following the relaxation of regulatory requirements, and lately, "big names" in the industry entered the market by opening branches: GEN Re, SCOR, Lloyd's of London, MUNICH Re, SWISS Re, Reinsurance Group of America (RGA), HANNOVER Re, XL Catlin and others.


See all