STATISTICS: HUNGARY, 1H2018: 25% increase in the market aggregated profitability

Hungarian insurers have reported consolidated GWP worth HUF 520.15 billion in 1H2018, by 7.1% up y-o-y. Yet, given the over 6% depreciation of the Forint against the European currency, the market results denominated in Euro show a total GWP volume of EUR 1.58 billion, only 0.6% up y-o-y.

According to market data provided by the National Bank of Hungary, the insurance portfolio didn't saw significant changes. Yet, increasing by a lower than average rate, GWP for life insurance have lost about 1.5 percentage point market share, currently accounting for 45.46% of the total GWP. Unit-Linked products, accounting for about half of the life insurance business, have seen a negative trend, with GWP decreasing by 4.9% (in HUF).

On the non-life side, the overall property insurance business (Fire and damage to property of individuals, institutions, undertakings (excluding Small and Medium Sized Undertakings), Small and Medium Sized Undertakings & Other fire and damage to property - summed) saw a 4.16% increase in GWP, to HUF 98.55 billion, while paid claims decreased by about 18% in a "calmer" first half of the year during which the number claims files decreased by about 7,000.

Motor insurance lines recorded both a positive premiums dynamic: 16% growth in GWP for Motor Hull, to HUF 45.11 billion and 14.23% growth in the MTPL GWP, to HUF 138.8 billion. Paid claims for motor insurance went up by over 12%, mostly driven by the MTPL segment. The total number of policies sold increased for both motor insurance lines: by about 50.000 units for Motor Hull and some 250.000 units for MTPL.

The total number of insurers active on the Hungarian market decreased by 4, to 23 following a number of M&S operations among which the merger of the three companies owned by VIENNA Insurance Group into one - UNION Biztosito -, is the most important.

Overall, Hungarian insurers ended 1H2018 with a consolidated profit after tax of HUG 40 billion, 25% up y-o-y.

Access www.xprimm.com and download the 1H2018 Hungarian insurance market statistics.

Follow XPRIMM Publications on LinkedIn, for more data on the insurance and financial industry.

Share |

Related articles

Hungary: less than 20% of Hungarians have an accident insurance policy

Only 10-20% have an accident insurance, while in many countries of the Western Europe accident insurance coverage among their population is of more than 80%, The Budapest Business Journal reports. The low penetration leaves about 8 million Hungarians uninsured for the accident risk.

2018-07-18

ON THE MOVE

Bulgaria: Boiko ATANASSOV appointed as FSC's head

The Parliament of the Republic of Bulgaria appointed Boiko ATANASSOV as Chairperson of the Financial Supervision Commission (FSC) on March 15, with 134 votes in favour, none opposed or abstained.

21.03.2019

TOP EVENT

Climate and cyber: two Cs with catastrophic potential and the insurance business - under debate in Vienna, on April 9

10 years after its inception, the Romanian mandatory dwelling insurance system has progressed and PAID, the pool underwriting and managing the mandatory policies is a strong and financially sound institution. "We are currently managing a reinsurance program worth EUR 920 million, with a pool of excellent reinsurers, more than half of them rated AA+, while the company's solvency rate is of 220%," recently stated Nicoleta RADU, CEO, PAID.

21.03.2019

Conclusions: TBILISI - the first Georgian International Insurance Conference

The first Georgian International Insurance Conference took place on 14 March 2019. The event put under scrutiny the current status and the future development perspectives of the local market, in an attempt of identifying the main growth opportunities. The forthcoming launch of the mandatory MTPL system was the most important topic on the agenda, as this new line of business has the potential to provide for a significant growth, but also to become a market disruptor.

14.03.2019

See all