This reflected an increase of about 3% in life insurance premium income and 8.7% in non-life insurance premium income. About 40% of premium income originated from the life insurance business and 60% from the non-life insurance business in 2020 Q1.
"In 2020 Q1, quarterly premium income rose by 16.7% relative to the previous quarter, reflecting a decrease of 1.8% in life insurance premium income and an increase of 33.7% in non-life insurance premium income.
The sharp increase in non-life premium income in the quarter reflected the fact that premiums are paid once a year for specific non-life product groups, i.e. the whole amount of the annual premium is paid in the first quarter of the year.
This phenomenon occurs in the first quarter of each year", according to the "Prudential data of insurance undertakings 2020 Q1Report" published on the website of the National Bank of Hungary.
At the end of 2020 Q1, the total contract portfolio of insurance companies was 2.5% higher than its level a year earlier. This reflected a nearly 356,000 increase in new contracts, mainly as the result of a 3.3% rise in the number of non-life insurance contracts, accompanied by a practically unchanged number of life insurance contracts (a decline of 1.1%).
As a result, the total number of insurance contracts exceeded 14.37 million at the end of 2020 Q1. At sector level, the number of non-life insurance contracts rose modestly, while the number of life insurance contract remained broadly unchanged (an increase of 0.15% and a decline of 0.06%, respectively) in 2020 Q1 relative to the previous quarter.
According to the MNB published statistics, the aggregate market gross profit was up by 14.72% y-o-y to HUF 27.21 billion the equivalent of EUR 75.5 million* (vs. HUF 23.6 billion), while the value of net profit increased to HUF 25.4 billion (EUR 70.8 million*). At the same time, the technical result was down by -1.28% y-o-y to HUF 18.6 billion vs. HUF 18.9 billion a year before.
At the end of March 2020, on Hungarian insurance market wereactive 22 insurers: 5 specialised life insurers, 9 non-life, and 8 composite insurers.
1 EUR = 359.09 HUF (March 31st, 2020)
1 EUR = 320.79 HUF (March 31st, 2019)