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Vienna Life premiums revenue drops 7% in Q1, expects 5% growth by year end

Revenue from premiums of insurer Vienna Life Biztosító fell 7% to HUF 3.3 billion in the first quarter of the year, as compared to the same period a year earlier, according to a press release issued yesterday. Total revenues of Vienna Life in the first five months of the year are expected to reach HUF 5,92 bln, up by 1% compared to the same period a year ago, the firm said.

The insurer considers the drop to be temporary, CEO Anett Vadas-Földvári said at a press conference, according to Hungarian news agency MTI. The CEO attributed the drop to a decline in sales of products with one-off premiums, as revenue from such products fell by 35% to HUF 613 million due to a low-yield environment. 

Despite the drop in the first quarter, the firm expects a 5% rise in revenue from premiums by the end of the year, expectedly reaching HUF 15.1 bln, along with pre-tax profit almost tripling to HUF 363 mln.

The company foresees 2-3% growth on the life insurance market, while the market for products with one-time premiums is foreseen to contract by 5-10%. The company also anticipates the expansion of the travel insurance market by 5-10% and the health insurance market by more than 10%, according to MTI’s report.