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Allianz Hungaria premium revenue edges up to HUF 165 bln in 2010

Insurer Allianz Hungaária's revenue from premiums edged up 1.5% to HUF 164.9 billion in 2010, CEO Péter Kisbenedek told journalists on Friday.

Allianz Hungária closed the year with profit of HUF 4.3 billion, Kisbenedek said. Profits were hit by HUF 6 billion in payouts on claims for damages caused by bad weather as well as HUF 4.3 billion paid on an extraordinary financial sector levy, he added.

Allianz Hungária tried to keep its profits by cutting costs, making savings of HUF 1 billion in its general insurance division. Most savings came from making all kinds of procedures – from signing policy contracts to making claims – electronic.

Raising premiums was out of the question because of pressure to keep prices down in the vehicle and home insurance segments and strong competition in the industrial insurance segment.

Allianz will continue to operate its private pension fund, Kisbenedek said. Members who remained in the fund are high earners with a strong propensity for self care, improving the quality of the portfolio, he added.

About 97% of Hungarian private pension fund members decided in February to return, together with their pension savings, to the state pension pillar under a government initiative.