The Hungarian insurance sector maintained a positive development and financial stability in the first half of 2026. The sector’s cumulative premium income amounted to HUF 1,084 billion (EUR 3.053 billion), up 3.5% y-o-y, according to data provided by the National Bank of Hungary (MNB). The overall result reflected a 6.7% increase in non-life premium income and a 1% decrease in life insurance premiums.

It is worth noting that, on the life insurance side, unit-linked and index-linked business recorded a 21% surge in premium income, largely offsetting the decline in other life insurance segments.

Among non-life products, motor insurance generated the highest premium income, with MTPL and Motor Hull together accounting for about 28.4% of total market GWP. While mandatory MTPL premiums recorded a rather modest y-o-y increase, Motor Hull showed stronger growth.

However, more than half of Hungarian motorists (53%) lack Motor Hull or roadside assistance coverage, leaving them exposed to potentially significant repair costs. Moreover, the average vehicle age has reached 16.5 years, with 49% of cars in circulation older than 16 years. This aging trend was reinforced in early 2026 by an 18.7% surge in used-car imports. Around 50,000 second-hand vehicles, with an average age of 12 years, entered the market. Used-car imports thus grew faster than new vehicle registrations (+10.5%), adding further pressure on repair costs and claims in both MTPL and Motor Hull.

At the end of 1H2026, Hungarian insurers’ investments reached HUF 5,217.3 billion, while their allocation remained broadly stable. Government bonds represented 46.1% of total investments, followed by investment fund shares at 41.3% and equities at 5.9%. Hungarian sovereign bonds accounted for 98.4% of insurers’ government bond holdings. Traditional insurance portfolios remained heavily concentrated in government bonds (81.4%), while unit-linked and index-linked portfolios were dominated by investment fund shares (76%).

The Hungarian insurance market recorded a total technical result of HUF 67.72 billion in the first half of 2026, with slightly more than two-thirds coming from the non-life sector. Pre-tax profit reached HUF 72.75 billion, while after-tax profit stood at HUF 68.83 billion.

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