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Insurers’ pre-tax profits increase 56% in 2005

The combined pre-tax profits of Hungary's insurance companies rose 56% to Ft 63 billion in 2005, according to preliminary figures, largely on sales of unit-linked life insurance products, the State Financial Supervisory Authority (PSZÁF) said in a report on the sector published on Thursday. Insurance companies' combined total assets increased 20% in 2005.


The sector's revenue from premiums on life insurance policies increased 25% to Ft 295 billion in 2005, but revenue from unit-linked life insurance policies rose a marked 160%. Revenue from premiums of conventional life insurance policies rose just 4%. Unit-linked life insurance policies accounted for one-fourth of all new policies signed in 2005. Costs in the life insurance segment increased 9% to Ft 65 billion in 2005, due to a 14% increase in the costs of winning new clients.


Revenue from premiums in the non-life insurance segment increased 8% to Ft 376 billion in 2005, growing far more slowly than in the previous year. Within the segment's revenues from premiums, the share of products hardly changed: mandatory vehicle insurance and comprehensive vehicle insurance continued to make up 60% of premiums. In the non-life insurance segment, costs increased 6% to Ft 120 billion.