Hungarian insurer CIG Pannónia booked an after-tax loss of HUF 679 million in the first quarter, growing from a HUF 575 million loss in the same period a year earlier as margins narrowed, the company said in its consolidated IFRS report published on Tuesday.
Premium revenue rose 59% to HUF 7.9 billion during the period but operating costs climbed at a faster rate, increasing 69% to HUF 5.35 billion. Administrative costs made up about one-fifth of operating costs.
Nearly all revenues from premium are from unit-linked life insurance policies. Revenue from premiums on policies sold in Q1 came to HUF 3.10 billion.
CIG Pannónia had total assets of HUF 37.55 billion on March 31, 2011, up 111% from twelve months earlier. Net assets rose 199% to HUF 7.55 billion.
Parent company CIG Pannónia Életbiztosító had an unconsolidated loss of HUF 1.07 billion in Q1, according to Hungarian Accounting Standards (HAS), up 50% from a year earlier.
Unconsolidated revenue from premiums rose 53% to HUF 8.16 billion. Claims and cost of services rose 84% to HUF 1.83 billion.
The parent company had total assets of HUF 39.95 billion on March 31, 2011, more than double from twelve months earlier. Net assets soared 225% to HUF 8.67 billion.