February 24, 2011
CIG Pannónia Life Insurance Plc Doubled Its Market Share
The 2010 data published by the Association of Hungarian Insurance Companies (MABISZ) show that the Hungarian life insurance sector increased its revenues again through a 50% rise in new regular-premium life insurance policies. CIG Pannónia Life Insurance Plc sold new policies worth HUF 10.3 bn, accounting for 16.4% of the total sales in the life insurance sector in 2010. The management expects further growth in the market and the emergence of new business opportunities in the 2011 financial year.
Dynamic growth in the number of acquisitions in the life insurance market
Life insurance companies sold new policies with a value of HUF 62.8 bn in 2010, up by 51.5% from HUF 41.5 bn in 2009. With its HUF 10.3 bn worth of sales, CIG Pannonia Life Insurance Plc’s market share was 16.4% in terms of new acquisitions.
Premium revenues on the rise again
The 7.8% rise in the premium revenue of the life insurance market and the resulting HUF 442 bn total sales volume were the result of a 25% increase in the sales of single premium insurance policies. CIG Pannonia Life Insurance Plc’s premium revenue, of HUF 25.8 bn last year, had grown by 113%, doubling the company’s market share from 2.9% to 5.8%.
Investment life insurance products continue to drive the market
Unit-linked life insurance policies continued to drive sales in the market with a 83.7% market share last year, growing by 76% from HUF 29.8 bn in 2009 to HUF 52.5 bn in 2010 in terms of new acquisitions. CIG Pannónia Life Insurance Plc had a 19.4% share in this market with a sales volume of HUF 10.2 bn. The total revenue of the unit-linked market grew by about 6% to HUF 266.8 bn, out of which the Company’s share was 9.6% with HUF 25.7 bn in premium revenue.
Focus on regular-premium life insurance policies
In the market for regular-premium life insurance products, which allow premium revenues and profitability to grow sustainably in the long term, the revenue of the life insurance sector was HUF 274.8 bn last year. The portfolio of CIG Pannónia Life Insurance Plc’s regular-premium products grew by 150% to HUF 15.4 bn.