STATISTICS: HUNGARY FY2014: Positive trend both in profitability and underwriting volume
Life insurance recorded the best dynamic, with GWP growing by 4.75%, to HUF 457.12 billion (EUR 1.45 billion). The "assurance on death" class recorded a spectacular growth in GWP, by almost 78%, increasing its share in the market portfolio to 6.2%, from 3.6% at the end of 2013. As emphasized by Daniel MOLNOS, MABISZ's Secretary General, "once again the classic insurance protection products began to move in the direction of providing the market." He also stressed out that particularly good news is that the positive evolution seems to be a result of the fiscal incentives applied starting last year for both for life and pensions insurance. Still, the unit-linked insurance line, the most consistent segment of the Hungarian life insurance business, continued to record a negative trend, with GWP decreasing y-o-y by 1.65% and loosing about 2pp of its portfolio share.
The non-life insurance sector also saw a positive change in the premium volume, GWP amounting HUF 376.67 billion (EUR 1.2 billion), 3.15% up as compared with 2013. It is interesting to observe that while motor insurance lines recorded an overall 5.8% growth in GWP, to HUF 145.8 billion (EUR 463 million), property insurance lines' GWP went down by almost 1%, to HUF 157.73 billion, driven by the 3.7% decrease of the fire insurance premium.
Looking at the number of policies "in force" published by the National Bank of Hungary, the market watchdog, it is interesting to observe that the fall in GWP for the fire insurance line is most probable attributable to the market softening, since the total number of policies grew by about 1,500 units as compared with 2013. On the other hand, for the MTPL insurance line, the almost 10% growth in GWP came both from an about 7% increase of the average premium and the increasing number of policies fueled also by the positive trend recorded in the cars sales.
The aggregated profit after tax recorded by the Hungarian insurers amounted to HUF 30.7 billion, almost 12% y-o-y.
Access www.xprimm.com and download the FY2014 Hungarian insurance market statistics.
Market portfolio (in EUR and HUF) according to the National Bank of Hungary (NBH):
- Gross written premiums
- Paid claims
- Growth rates
- Overall market ranking
- Overall life insurance ranking
- Non-life insurance ranking
- Compulsory MTPL