The additional 690,000 new contracts are mainly a result of a nearly 7.4% increase in the non-life insurance business. Overall, while the number of life insurance contracts has been stagnating, that of non-life contracts has been rising steadily. The number of non-life insurance contracts rose by more than 2.4% in the final quarter of 2015, said NBH.
Life insurance GWP saw a decline of about 3.2% y-o-y, HUF 442.53 billion, while on the non-life side premiums went up by 8.5%, to HUF 408.9 billion. Yet, life insurance still represents the largest part of the market portfolio, with a 52% share of the GWP.
On the other hand, paid claims rose by 3%, to a total of HUF 528.5 billion, almost entirely driven by the increasing claims expenses recorded for the non-life insurance lines (+7% y-o-y).
"Analyzed in accordance with the regulations in effect until the end of 2015, the insurance sector's capital adequacy remained stable in the period, being nearly twice as high as the required level in both businesses," reported NBH. Thus, the market's capital adequacy ratio stood at 218.1% for life insurance and 191.7% for the non-life segment.
In 2015, the sector's aggregated technical result increased significantly, by 89.9%, in comparison with the same period of the previous year, due to a technical result of HUF 9.4 billion realized in 2015 Q4. The improvement mainly reflected the release of reserves in the life insurance business and an increase in premiums earned in the non-life insurance business.
In 2015 Q4, insurance companies registered a total profit after-tax of HUF 10.8 billion; as a result of that, their profit after-tax for FY 2015 rose to HUF 44.2 billion, which was 36.1% higher than in the same period of the previous year; 23 insurers registered a total profit of HUF 45.5 billion and 8 insurers registered a loss of HUF 1.4 billion.
Access www.xprimm.com and download the FY2015 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