This reflected an increase of about 7% in life insurance premium income and 17% in non-life insurance premium income. About 44.3% of premium income originated from the life insurance business and 55.7% from the non-life insurance business.
"The sharp increase in non-life premium income reflected the fact that instead of the accident tax, which was meanwhile phased out, from 1 January 2019 the insurance tax replaced the previous accident tax in case of motor third party liability insurance (at a tax rate of 23%), which is payable as part of the insurance premium", as MNB representatives noted in a report.
In 2019 Q1-Q4, the sector's aggregated technical result exceeded the previous year's result by 7.3% to HUF 67.44 billion (~EUR 204 million), while the after-tax profit of insurance companies rose to HUF 75.9 billion (~EUR 230 million), which exceeded the value in the previous year by nearly 5%. According to the presented figures, 21 insurance companies ended 2019 with a profit and one insurance company with a loss.
At the end of 2019 Q4, the total contract portfolio of insurance companies was 3.2% higher than its level a year earlier. This reflected an increase of more than 442,000 in new contracts, mainly as the result of a rise more than 4% in the number of non-life insurance contracts, accompanied by a practically unchanged number of life insurance contracts (a decline of 1%). As a result, the total number of insurance contracts exceeded 14.35 million at the end of 2019.