Cools attributed the sharp decline in after-tax profit to the company’s payment of HUF 1.3 billion in extraordinary financial sector tax, a 24.4% rise in damages stemming from extreme weather conditions which resulted in an additional HUF 1 billion loss as well as increasing price competition on Hungary’s non-life-insurance market.
Cools said that K&H Insurance’s stock of non-life-insurance policies rose 12.4% to 575,000 at the end of 2010, adding that much of this increase stemmed from a 20% rise in the company’s stock of obligatory vehicle-liability insurance policies during the year.
K&H Insurance’s share of Hungary’s non-life insurance market remained stable at 3.7% last year, Cools noted.
Revenue from new life policies with regular payments rose 150% from 2009. K&H Bank is owned by Belgium’s KBC.
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