HUNGARY, FY2011: Insurance market remains on the downward track

24 February 2012 — Daniela GHETU
xcom_statisticThe Hungarian insurance market is one of the latest in the CEE region still having a rough time as a result of the austerity measures undertaken by the government in its attempt to balance de country's deficit. Insurers' combined revenue from premiums edged down an inflation-adjusted 2.7% to HUF 821 billion in 2011, according to the Hungarian Insurers Association (MABISZ). In nominal terms, the market saw a 0.38% growth. Denominated in European currency, 2011 figures are showing an even more worrying picture, with a 10% drop in GWP, to EUR 2.64 billion, following the almost 12% y-o-y depreciation of the Hungarian forint exchange rate. All in all, the number of policies fell by 60,000 units, to 11 million, MABISZ said.

The life insurance segment grew by 5.5%, y-o-y nominal change in HUF, to HUF 439.8 billion (EUR 1.4 billion). Unit-linked, currently representing an over 66% share of the life insurance portfolio, was the only class recording a positive change, of 10.6%, while on the traditional life insurance classes there was a drop of about 4.5%. According MABISZ, the fall in the number of life insurance policies by about 47,000 units was related to the early foreign currency-denominated mortgage repayment scheme. Hungarian citizens who had a bank loan in foreign currency could join the scheme until the end of last year and repay the amounts due at a discounted exchange rate.

On the non-life insurance side, the 2011 figures show a drop in GWP of almost 5% (nominal, HUF), to HUF 381 billion (EUR 1.22 billion). Within the segment, premiums from MTPL insurance came to HUF 98.2 billion (16.7% less than in 2010, in nominal terms), while Motor Hull insurance premiums revenue reached HUF 72.3 billion (12.5% less than in 2010, in nominal terms). Fire and natural disaster insurance polices generated HUF 89.7 billion, 4.15% more than one year ago, in nominal terms.

ALLIANZ, GENERALI-PROVIDENCIA and GROUPAMA maintained their top 3 position in the overall ranking, in spite of the negative growth rates registered in 2011. Among them, only ALLIANZ reported an significantly above average negative change in GWP, of 13.7% in nominal terms, loosing over 2 percentage point of its market share. Most of this drop in GWP came from the MTPL business, for which the company reported a 33.4% lower GWP than in 2010. However, ALLIANZ still hold the leader position for this line, with a market weight shrinking from over 34% in December 2010, to 27.2% by the end of 2011.

Access www.xprimm.com and download the FY2011 Hungarian insurance market statistics.

Market portfolio (in EUR and HUF):
  • Gross written premiums
  • Growth rates
Market rankings (GWP/ Market shares/Growth rates - in EUR and HUF):
  • Overall market ranking
  • Life insurance ranking
  • Unit-linked insurance ranking
  • Non-life insurance ranking
  • MTPL insurance ranking

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