After the results of the first half of 2012 showed a worrisome decrease, the Hungarian insurance market seems to recover to a certain extent, according to the market results denominated in the European currency. Thus, although it maintained a downward trend, the 3Q2012 results appear to show signs of a flattening downward curve. GWP amounted to EUR 2.06 billion, 2.45% y-o-y less, as compared with the over 12% fall recorded in 1H2012. Yet, the improvement is mostly due to the HUF 8% appreciation, while in local currency, the total GWP amounted to HUF 586.08 billion, 5.26% y-o-y down, maintaining a quasi constant decreasing pace.

Unlike other markets across the region, in Hungary the fall was driven primarily by life insurance which recorded a 5.54% decrease rate in the European currency (8.26% in HUF), down to EUR 1.06 billion. Unit-linked insurance products, one of the main insurance classes, holding more than 33% of the total GWP volume, continued to lose ground. The GWP figure decreased by 9.6%, to EUR 684 million and the total number of active policies fell by more than 28,000. At the same time, indemnities paid for life insurance grew by 13.45% y-o-y, to EUR 1.07 billion. Again, the highest contribution belonged to unit-linked products for which Hungarian insurers paid EUR 467 million, 13.4% more than in 3Q2012.

On the non-life insurance side, property insurance classes together with other non-motor business lines barely succeeded in compensating the ongoing falling trend of the motor insurance business. Property insurance GWP grew by 7% y-o-y, to EUR 426.4 million, gaining about 2pp more in volume of market share. Following a period of tranquillity in terms of major weather-related events, claims paid for the property lines decreased by almost 8%, to EUR 138.8 million.

Motor insurance classes recorded once again a negative y-o-y change of almost 5%, to a GWP amount of EUR 406 million. It is interesting though to observe that Motor Hull had a slightly positive evolution (a 0.7% growth rate in Euro), while on the mandatory MTPL line Hungarian motor insurers recorded a GWP of EUR 215.8 million, 9.4% less y-o-y. As compared with the end of 2011, the number of valid policies grew for both Motor Hull and MTPL classes, meaning that the underwriting decline is determined mainly by the lowering tariffs.

Hungarian insurers made in 3Q2012 an aggregated pre-tax profit of HUF 21.7 billion (EUR 76.5 million), while the after tax profit amounted to HUF 17.2 billion (EUR 60.6 million).

Access www.xprimm.com and download the 3Q2012 Hungarian insurance market statistics.

Market portfolio (in EUR and HUF) according to Hungarian Financial Supervision Authority (PSZAF):

• Gross written premiums
• Paid claims
• Growth rates
  

Market rankings (GWP/ Market shares/Growth rates - in EUR and HUF) according to Association of Hungarian Insurance Companies (MABISZ):

• Overall market ranking
• Overall life insurance ranking
• Non-life insurance ranking
• Compulsory MTPL