Hungary
Hungarian insurance market
The top 5 insurance groups generated around 60% of the premium volume. The two largest insurance groups generated around 29%.
Market growth in the 1ST TO 3RD Quarters of 2018 compared to the previous year
Source: National Bank of Hungary (MNB)
The Hungarian market continued to grow in 2018. The rate of growth gained slightly in the first three quarters, with premiums increasing 9.3% in the local currency.
Premiums in the non-life sector were 12.2% higher year-on-year. This change was primarily driven by the motor lines of business, which recorded gains mainly as a result of higher average prices and an increase in the number of vehicles insured. Health insurance recorded very dynamic growth of 68.2%.
Market shares of the major insurance groups
Source: Hungarian Insurers Association (MABISZ); as of 2017
Life insurance premiums rose by 6%. Tax-privileged pension insurance continues to be popular, with growth rates of 31.7%.
According to Axco Global Statistics, the average per capita expenditure for insurance in Hungary was EUR 315 in 2017. Of this EUR 162 was spent for non-life insurance and EUR 153 for life insurance.
VIG companies in Hungary
The national bank approved the merger of three VIG companies (Union Biztosító, Erste Biztosító and Vienna Life Biztosító) at the end of March 2018. VIG has therefore been represented exclusively by the insurance company Union Biztosító in Hungary since April 2018. The merger will give the Group an operating size in Hungary that ensures more effective operations and helps achieve the goal of a market share of around 10% in the medium term.
VIG had a market share of 7.8% in 2017, which put it in 6th place in the market. It was in 7th place for non-life insurance and 4th place for life insurance.
Financial performance indicators in the Hungary segment
Premium development
Premiums by line of business
Values for 2017 in parentheses
The Group companies in the Hungary segment wrote EUR 263.5 million in premiums in 2018 (2017: EUR 246.7 million). This corresponds to a year-on-year increase of 6.8%, which was primarily due to strong premium growth in motor third party liability and health insurance. Net earned premiums were EUR 205.2 million in 2018, 6.8% higher than the previous year (2017: EUR 192.1 million).
Expenses for claims and insurance benefits
Vienna Insurance Group had expenses for claims and insurance benefits (less reinsurance) of EUR 161.9 million in Hungary in 2018 (2017: EUR 142.6 million), which represents an increase of 13.5% compared to the previous year. This was larger than the increase in net premiums, primarily due to the increase in volume for health and motor third party liability insurance and their respective claims ratios.
Acquisition and administrative expenses
Vienna Insurance Group acquisition and administrative expenses rose 6.2% to EUR 39.3 million in the Hungary segment in 2018 (2017: EUR 41.9 million), mainly due to an increase in reinsurance commissions.
Result before taxes
The result before taxes rose to EUR 7.6 million in Hungary in 2018 (2017: EUR 2.1 million). The increase was primarily due to a lack of the write-down of Vienna Life insurance portfolios that was performed in the previous year and a better combined ratio.
Combined Ratio
The combined ratio improved compared to the same period in the previous year to 98.5% in 2018 (2017: 98.9%).
in EUR millions |
2018 |
2017 |
∆ in % |
∆ absolute |
Premiums written |
263.5 |
246.7 |
6.8% |
16.8 |
Motor own damage insurance (Casco) |
17.5 |
16.3 |
7.3% |
1.2 |
Motor third party liability insurance |
29.1 |
20.6 |
41.2% |
8.5 |
Other property and casualty insurance |
52.1 |
51.3 |
1.6% |
0.8 |
Life insurance – regular premium |
90.0 |
89.6 |
0.5% |
0.5 |
Life insurance – single premium |
59.2 |
60.7 |
-2.5% |
-1.5 |
Health insurance |
15.5 |
8.2 |
89.4% |
7.3 |
Result before taxes |
7.6 |
2.1 |
>100% |
5.5 |