Life GWP rose 6.31% to HUF 257.88 billion, while non-life GWP jumped 17.48% to HUF 333.63 billion as an insurance tax was applied to compulsory vehicle insurance policies, replacing an accident tax, from January 1, 2019: "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, and this is reflected in the increase in premium income". In fact, one of the most dynamic insurance class during 2019 was MTPL: +34% y-o-y to HUF 381 billion increasing its share in total GWP by 3% to 20.9%.
In terms of damages, the value of incurred claims (paid claims and reserves, summed-up) amounted to HUF 212.17 billion for life insurance contracts (+4.88% y-o-y) and HUF 120.90 billion for non-life policies, +8.95 more y-o-y.
Hungarian insurers reported H1 aggregate market gross profit of HUF 41.94 billion (~EUR 129.63 million) vs. HUF 42.29 billion, while the value of net profit was HUF 39.63 billion (EUR 122.48 million), 1.11% less y-o-y. At the same time, the technical result was HUF 28.61 billion vs. HUF 30.22 billion a year before.
MNB pointed out that at the end of 2019 Q2, the total contract portfolio of insurance companies was 3.8% higher than its level a year earlier. This reflected an increase of more than 510,000 in new contracts, mainly as the result of a 4.5% increase in the number of non-life insurance contracts. while the number of life insurance contracts remained practically unchanged (showing a 0.3% increase). As a result, the total number of insurance contracts exceeded 14.1 million at the end of 2019 Q2. At sector level, the number of both life and non-life insurance contracts rose modestly (by 0.2% and 1.5%, respectively) in 2019 Q2 relative to the previous quarter.
- Hungary 1H2019 Market Portfolio (in EUR and HUF)
- Gross written premiums
- Paid claims
- Market weights