STATISTICS: HUNGARY, 1Q2019: Market profitability remained almost unchanged

27 June 2019 — Andrei Victor
25 Hungarian insurers reported 1Q2019 aggregate GWP up by 14.8% y-o-y to HUF 316.4 billion (EUR 986 million), according to the quarterly market data published by the National Bank of Hungary (MNB). Life insurance GWP increased by 11.2% to HUF 132 billion (EUR 411 million), while non-life GWP increased by 17.5% to HUF 185 billion (EUR 575 million), as the MNB figures reveal.

According to the local Central Bank, "the high premium income in non-life insurance policies in 2019 Q1 are partly attributable to the fact that from 1 January 2019 the insurance tax replaced the previous accident tax in case of motor third party liability insurance, with a tax rate of 23%, and the insurance tax is to be paid as part of the insurance premium. On the other hand, certain non-life product groups are still characterised by annual payment, i.e. the premium for the whole year was paid in 2019 Q1. This is a usual phenomenon in the first quarter of every year. 42% of the Q1 premium income originated from the life insurance business, whereas 58% thereof came from the non-life insurance business".

According to the MNB published statistics, the aggregate market gross profit remained almost unchanged (-0.3% y-o-y to HUF 23.6 billion, the equivalent of EUR 73.7 million), while the value of net profit remained at HUF 22.2 billion (EUR 69.3 million). At the same time, the technical result was up by 2.85% y-o-y to HUF 18.9 billion vs. HUF 18.3 billion a year before.

At the end of Q12019, the total contract portfolio of insurance companies was some 4% higher than its level a year earlier (over 14 million policies). This reflected an increase of over 530,000 new contracts, which is primarily a result of a 4.8% increase in the number of non-life insurance contracts (to 11.6 million) with the number of life insurance contracts left almost unchanged (increase by 0.3% to 2.4 million).

Access and download the 1Q2019 Hungarian insurance market statistics.

* Exchange rates:
1 EUR = 320.79 HUF (March 31st, 2019)
1 EUR = 312.55 HUF (March 31st, 2018)

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