STATISTICS: HUNGARY, 1H2020: Insurers' profits expanded to more than EUR 140 million

1 October 2020 —
STATISTICS: HUNGARY, 1H2020: Insurers' profits expanded to more than EUR 140 million
According to the half-year market figures published by the Central Bank of Hungary - MNB, the insurance sector's 1H2020 premium income amounted to HUF 613 billion (~EUR 1.72 billion), rising in local currency by 3.65% y-o-y. Life insurance H1 2020 premium income increased by about 0.59% to HUF 259.4 billion, while non-life segment expanded by more than 6pp to HUF 353.69 billion. About 42.31% of premium income originated from the life insurance business and 57.69% from the non-life insurance business.

At the same time, the sector's aggregated technical result exceeded the January-June 2019 result by 42.82% to HUF 40.86 billion (~EUR 114.59 million), while the after-tax profit of insurance companies rose by 27% to HUF 50.35 billion (~EUR 141.20 million).

At the end of June 2020, the total contract portfolio of insurance companies was 1.36% higher than its level a year earlier. This reflected an increase of 193.316 in new contracts, mainly as the result of a rise of 2% (to 12.038.870) in the number of non-life insurance contracts. The number of life contracts declined by 1.77% to 2.348.786. As a result, the total number of insurance contracts exceeded 14.38 million at the end of H1 2020.

In terms of claims, overall, total incurred claims (payments and reserves summed-up) decreased by 6.64% y-o-y to HUF 310 billion. Life incurred claims decreased by 8.5% y-o-y, while the same indicator in non-life totaled HUF 116 billion, 3.31% less y-o-y. It is worth mention that, on property segment, total incurred claims increased by almost 10% y-o-y as a result of the damages caused during this year's storm season from May 1 to August 31. In fact, local press noted, quoting the calculations of the Association of Hungarian Insurers (MABISZ) that following the stormy season, local insurers will pay up to twice last year's amount. In August 2020, MABISZ explained in its announcement that due to the weather anomalies in July, insurers will have to pay at least HUF 2.5 billion for claims settlement related to home insurance, after paying out HUF 5 billion in June. noted that in the previously notable summer period of 2010, insurers paid HUF 30 billion for 312,000 claims, and then spent HUF 6-8 billion on an average of 100,000 claims received annually.

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