Hungarian insurance market
The top 5 insurance groups generated around 60% of the premium volume in 2018. The two largest insurance groups generated around 30%.
In the first nine months of the year, the Hungarian insurance market recorded a double-digit increase in premium volume of 11.0% in local currency terms.
The non-life sector also recorded double-digit growth (+17.1%). The main contribution came from motor third party liability insurance, which recorded a remarkable increase of 32.0%. The increase was primarily due to rising prices resulting from an increase in the insurance tax. Motor own damage premiums also increased 12.1% year-on-year in the 1st to 3rd quarters of 2019. This was due to a larger number of insured vehicles and higher prices.
The Hungarian market continues to show massive interest in health insurance, which recorded an increase of 42.1%.
Life insurance premiums rose 3.8%. Tax-privileged pension insurance remained popular, with an increase of 20.9% in the first nine months of 2019. Endowment insurance also recorded double-digit growth (+16.8%).
According to Axco Global Statistics, the average per capita expenditure for insurance in Hungary was EUR 331 in 2018. Of this EUR 177 was spent for non-life insurance and EUR 154 for life insurance.
VIG companies in Hungary
The VIG Insurance Group operates with the insurance company Union Biztosító in Hungary. It had a market share of 8.1% in 2018, which put it in fifth place in the market. It was in seventh place for non-life insurance and fourth place for life insurance.
Financial performance indicators in the Hungary segment
In the Hungary segment, premiums written in the amount of EUR 289.5 million were generated in 2019 (2018:
EUR 263.5 million). This corresponds to a year-on-year increase of 9.9%, which was primarily due to strong premium growth in motor third party liability and other property and casualty insurance. Net earned premiums were EUR 219.6 million in 2019, 7.0% higher than the previous year (2018: EUR 205.2 million).
Result before taxes
The result before taxes rose to EUR 8.7 million in Hungary in 2019 (2018: EUR 7.6 million). The increase was mainly due to an improvement in the combined ratio.
The combined ratio improved compared to the same period in the previous year to 97.6% in 2019 (2018: 98.5%). It must be noted that larger provisions were formed for cancellations in the previous year.