Hungary Insurance Report Q3 2010 |  | Author: Business Monitor International
Publisher: MarketResearch.com
Category: Book
Buy New: $530.00
as of 9/9/2010 00:14 CDT details
Seller: Amazon.com
Format: Download: PDF
Media: Digital
Pages: 83
ASIN: B003WI06DI
Publication Date: June 3, 2010
Availability: Available for download now
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| Editorial Reviews:
Product Description
Writing in April 2010, we have been able to ensure that the report includes actual data for 2008. We have generally been able to use data published in 2009 to adjust our forecasts for the year as a whole. We estimate total premiums in 2009 of HUF802,199mn. This comprises non-life premiums of HUF425,379mn and life premiums of HUF376,820mn. In 2014 the corresponding figures are forecast to be HUF1,185,423mn, HUF607,936mn and HUF577,487mn. In terms of the key drivers that underpin our forecasts, we forecasts non-life penetration to rise from 1.66% in 2009 to 1.80% in 2014, and life density to rise from US$187 to US$300. BMI’s proprietary Insurance Business Environment Rating for Hungary is 58.1 out of 100.
We include a discussion of developments within regional markets on the basis of results published by major cross-border companies in and the latest information provided by regulators and/or trade associations. In local currency terms, non-life premiums shrank marginally for Hungary, in a similar fashion to Croatia and Slovakia.
Hungary’s Insurance Sector In Q210
The latest industry statistics available from the Association of Hungarian Life Insurance Companies (MABISZ) pertain to H109 and made depressing reading. Total premiums for the six months to the end of June 2009 amounted to HUF473,206mn, or 13.3% less than in the previous corresponding period. Compulsory motor third party (CMTPL) premiums fell to HUF68,623mn, while other non-life insurance premiums dropped by 3.0% to HUF221,777mn. Life premiums slumped by 23.0% to HUF188,334mn. By these measures, Hungary’s non-life segment performed slightly below that of its regional peers.
However, the collapse in life premiums was one of the most severe in Central and Eastern Europe. If Hungarians were less able to buy life insurance in the first half of last year than they were previously, they were also less able to buy more straightforward products. CMTPL premiums fell from HUF70,365mn in H108 to HUF678,623mn in H109. CASCO premiums dropped from HUF50,803mn to HUF47,956mn. Fire/related risks was unusual in that premiums actually rose slightly.
The pain in the life segment was not evenly spread over the leading players. Allianz’s life premiums roughly halved, to HUF13,114mn. Those of Aviva dropped by a similar percentage to HUF11,401mn. ING’s life premiums fell by about one fifth to HUF40,380mn; those of Groupama Garancia by about one-quarter to HUF18,275mn. However, AEGON’s premiums for H109 were down marginally y-o-y. The life premiums of Generali/PPF’s Hungarian subsidiary dropped from HUF26,259mn to HUF20,788mn. Needless to say, most of the companies that also participated in the non-life segment fared somewhat better there.
In its report for the three quarters to the end of September 2009, Vienna Insurance Group noted that its Hungarian subsidiary, Union, had achieved double-digit growth in premiums. This was not clear from MABISZ’s figures for H109. However, in the first half of the year Union was undoubtedly one of the few insurance companies in Hungary to achieve growth in total premiums.
Issues To Watch
Pricing In The Motor Insurance Lines
The weakness of CMTPL and CASCO premiums in H109 implies that even Allianz, which accounts for nearly 40% of CMTPL premiums written in Hungary, lacks pricing power. If Hungary’s economy weakens further through 2010, the slide in non-life premiums could accelerate.
Investment Earnings
Relative to their peers in other countries across Central and Southern Europe, Hungarian insurers are highly exposed to volatility in local bond markets, whether as a result of problems that are specific to Hungary or as a result of contagion.
Rationalisation
There is a long-tail of small insurance companies in Hungary. Operating conditions may be such that some of these groups rethink their commitment to the market.
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