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Insurer CIG Pannónia posts H1 loss with one-offs

Listed insurer CIG Pannónia posted a HUF 610 million loss after tax in the first half of 2019, against after-tax profit of HUF 1.8 billion in H1 2018, shows an unaudited, consolidated EU IFRS earnings report issued before the opening bell Thursday.   

The company attributed the loss to two main one-off factors. On the one hand, the board of 100%-owned unit EMABIT decided in June to suspend the insurance activity of Italian cross-border gaming surety insurance to keep the high risk exposure of the product from rising. This resulted in a net loss of HUF 692 mln.

The other cited factor was the HUF 1.057 bln loss CIG realized on the termination of Konzum shares it owned when Konzum merged into Opus Global in June. The latter impact was largely offset, however, by other comprehensive income, thus its capital impact was much lower (HUF -331 mln), the issuer noted. 

Some 24.85% of shares in CIG Pannónia are held by Konzum Investment and Asset Management Nyrt., according to the website of the Budapest Stock Exchange (BÉT), where CIG is listed in the Equities Prime category.

Total comprehensive income dropped 35% to HUF 416 mln in H1.    Gross written premium revenues were up 5% at HUF 13.3 bln, of which HUF 8 bln came from the life insurance segment.

Gross earned premiums were little changed at HUF 12.6 bln. Net earned premiums of HUF 8.2 bln in H1 were up 4% year-on-year.    Claim payments dropped 6% to HUF 8.5 bln. Operating costs dropped 1% to HUF 4.5 bln. 

H1 earnings per share came to minus HUF 6.5, against a positive HUF 15.1 in H1 2018.  

In the second quarter alone, the group had an after-tax loss of HUF 1.1 bln, against profit of HUF 540 mln a year earlier.