CIG Pannonia-Q1/22 results: outstanding GWP growth YoY

• CIG Pannonia (Pannonia) posted consolidated after-tax profit of HUF 66 mn for Q1/2022 (-83% YoY) on GWP of HUF 7.6 bln (+52% YoY). Life insurance segment posted after-tax losses of HUF 232 mln compared to profit of HUF 348 mln in Q1/21 due to a significant growth in unit-linked income, while non-life business also generated losses of HUF 273 mln as against losses of HUF 52 mln in the same period a year earlier. Other activities went into the red as well, with after tax losses of HUF 157 mln compared to after-tax losses of HUF 77 mln in Q1/21.
• Total comprehensive loss amounted to HUF 1.3 bln in Q1/22 versus losses of HUF 67 mln in the same period of last year. Other comprehensive losses were HUF 1.3 bln compared to losses of HUF 450 mln profit in the same period a year ago and included a decrease in the fair value of available-for-sale financial assets, out of which HUF 1.45 bln was the unrealized loss on government securities, while there were unrealized gains to the tune of HUF 127 mln on OPUS shares held by Pannonia.
• Despite accelerated GWP growth and losses Pannonia’s businesses remained financially stable and fundamentally solid: the consolidated solvency II capital adequacy ratio stood at as high as 249% at the end of March, 2022 compared to 273% at the end of 2021 and 309% at the end of 30 September, 2021. EMABIT’s (non-life segment) standalone solvency II capital adequacy ratio should have remained above National Bank of Hungary’s minimum requirement of 150%.