On November 21, 2023, Vienna Insurance Group (VIG) signed a purchase agreement to acquire 35% of the Hungarian holding company VIG Magyarország Befektetesi Zrt., which are currently held by the Hungarian state holding company Corvinus. After completion of the transaction, VIG's share in the holding company will increase from 55 to 90%.
As of January 1, 2024, Gergely Bacso will take over the position of Allianz Hungaria Zrt. CEO and Chairman of the Board from Alexander V. Protsenko, Portfolio.hu reports with reference to the insurance company's announcement.
The Hungarian insurance market shows healthy growth in terms of both revenues and profitability, but the decreasing number of intermediaries and low penetration mean challenges for the sector, Ministerial Commissioner Zsolt Kovacs spoke at the conference of the Hungarian Association of Independent Insurance Brokers (FBAMSZ) in Esztergom, Portfolio.hu wrote.
As a result of the storms during the first week of August, about 20,000 claims based on home insurance contracts were received so far by insurance companies that had sent their data to MABISZ (Association of Hungarian Insurers). This number is expected to rise further in the coming days, Portfolio.hu wrote.
The aggregate Q1 GWP reported by Hungarian insurers totaled HUF 421.71 billion (~EUR 1.10 billion), 6.57% more y-o-y, according to the Q1 statistics published by the Central Bank of Hungary. The life insurance business accounted for 35.85% and the non-life insurance business accounted for 64.15% of total premium income.
CIB Bank, Intesa Sanpaolo, and Generali entered into a partnership in the Hungarian market with the aim of strengthening bancassurance activities in the country and providing a comprehensive financial solution for families and businesses, MABISZ (Association of Hungarian Insurers) reports.
Several insurance companies had to cancel their previous contracts after the record paid claims due to the last year's drought, according to the Hungarian Association of Independent Insurance Bargainers (FBAMSZ) , portfolio.hu wrote.
According to the YE 2022 MNB (the National Bank of Hungary) statistics, the local insurance market totaled at the end of last year about HUF 1,428 billion (EUR 3.56 billion), up by 7.39% y-o-y. Life GWP increased by 1.02% y-o-y to HUF 609 billion / EUR 1.52 billion while non-life portfolio expanded by 12.68% y-o-y to HUF 819 billion / EUR 2.04 billion. Thus, during the analyzed period, the life insurance business accounted for 42.7% and the non-life insurance business for 57.3% of total GWP.
In the fourth quarter of 2022, the average MTPL premium for passenger cars increased by 8% compared to the same period in 2021. Claim expenses increased by 13% as a result of rising service and spare parts costs and changes in the exchange rate, according to the MNB's latest KGFB index, portfolio.hu wrote.
One tenth of the new home insurance contracts were qualified consumer-friendly products last December among insurers with MFO, which now protect almost HUF 1,100 billion of customer assets, portfolio.hu wrote.
According to the quarterly statistics published by the Central Bank of Hungary, at the end of September 2022, the aggregate market gross profit of Hungarian insurers decreased by 65% y-o-y to HUF 23.2 billion the equivalent of EUR 55 million (vs. HUF 66.3 billion/ EUR 184 million), according to the quarterly statistics published by the Central Bank of Hungary. At the same time, the value of net profit decreased by 66% y-o-y to HUF 21 billion (~EUR 50 million) vs. HUF 61.8 billion/ ~EUR 171 million.
By the end of October, insurers paid out four times as much in total for drought damage alone. In the coming period, this amount is expected to increase by HUF 1.2 billion, according to the Association of Hungarian Insurers (MABISZ), portfolio.hu wrote.
Austrian VIG informed it has applied for listing of its shares on the Budapest Stock Exchange. The shares of VIG (ISIN AT0000908504) have been listed on the Vienna Stock Exchange since 1994 and on the Prague Stock Exchange since 2008.
In the second quarter of 2022 motor and travel insurance have recovered, while life insurance (single premium) and corporate property insurance have grown. The insurance sector's premium income has increased by 20%, portfolio.hu wrote.
The majority of the population is satisfied with the services provided by insurers and continues to trust them, according to this year's Insurance Trust Index (BIBIX) survey, explained the Association of Hungarian Insurers (MABISZ), portfolio.hu wrote.
Ex Hungarian Aegon unit announced on its website that starting September 2022, the company will be present on the market under the names Alfa Vienna Insurance Group Biztosito Zrt. and Alfa VIG Penztarszolgaltato Zrt.
Insurers, funds and the capital market had to face volatility risks and asset depreciation as early as last year and in the first quarter of 2022, but were able to maintain their stability, portfolio.hu wrote based on the MNB's press release.