The FY2017/16 dynamic of the insurance industry was similar with the GDP growth-rate (+7.8%), thus the calculated insurance density evolved to EUR 312 per capita, while the penetration degree remained at about the FY2016 level (2.48%).
Life insurance GWP increased by 5% to HUF 460 billion, while non-life GWP increased by 9% to HUF 488 billion, as the yea-end figures reveal.
The property insurance segment generated GWP of about HUF 177.4 billion, of which - household insurance HUF 114.3 billion. Both motor insurance line saw a positive y-o-y change in GWP, to over HUF 151 billion for MTPL (+14.8% y-o-y), while the growth rate recorded in motor hull was rather moderate (+6.7% y-o-y), to nearly HUF 77 billion.
In terms of damages, the value of incurred claims amounted to HUF 364.53 billion for life insurance contracts (+7% y-o-y) and HUF 224.26 billion for non-life policies. Overall, during 2017, insurers paid out an aggregate HUF 588.88 billion of claims, up by 9.82% y-o-y.
At the end of December 2017, the number of insurance contracts in force rose by 3.9% (or by more than half million units) y-o-y to 13.44 million. There were 2.40 million life insurance contracts (about 10 thousand more), and 11.04 million non-life policies, a 494 thousand rise.
According to the MNB published statistics, the aggregate market gross profit increased by 20.5% y-o-y to HUF 68.5 billion (EUR 221 million), while the value of net profit was up by 24.5% to HUF 64.5 billion (EUR 208 million). "24 insurance companies ended 2017 Q1-Q4 with a total profit of HUF 64.6 billion and one insurance company with a loss of HUF 134.5 million", MNB pointed out in a statement.
At the same time, the technical result was HUF 50.8 billion (EUR 164 million), an increase of 11.2% y-o-y: "This reflected a significant, more than HUF 4 billion increase in non-life insurance technical results relative to 2016, which was due primarily to a 12.5% increase in non-life earned premiums. Life insurance technical results showed an increase of more than 5%, which also reflected an increase in life insurance earned premiums, accompanied by increased provisioning".
Due the merger of Hungarian VIG Group companies ERSTE Biztosito and VIENNA Life Biztosito into UNION Biztosito, at the end of December 2017 there were 25 active insurers on the market (vs. 27 a year before), including seven life insurance companies, nine non-life insurers and nine composite insurers.
Access www.xprimm.com and download the FY2017 Hungarian insurance market statistics.