CIG Pannonia

Last updated
CIG Pannonia Nyrt.
Company type Public
BPSE:  CIG
BUX Component
Industry Insurance
Financial services
Founded2007
Headquarters
Budapest
,
Hungary
Area served
Central Europe
Key people
Péter Bogdánffy (Chairman)
István Fedák (CEO)
ProductsLife and Non-life Insurance, Commercial & Consumer, Life & Retirement Insurance
RevenueIncrease2.svg US$ 105.77 million (2017) [1]
Website cigpannonia.com

CIG Pannonia Life Insurance Plc. is a Hungarian multinational financial services company headquartered in Budapest. Its core business and focus is life and non-life insurance. At present, CIG Pannonia is engaged in the life insurance business in Hungary, Romania and Slovakia.[ when? ]

Contents

History

Foundation

On 26 October 2007, the company was founded by well-known and acknowledged public figures and insurance experts from Hungary; its original name was CIG Central European Insurance Company. CIG was supported by the U.S. Inverstment bank Lehman Brothers. [2] It also had a successful partnership with Brokernet, one of Hungary's largest financial agencies. [3] In 2008, the company became market leader in niche markets like regular-premium, unit-linked life insurance products and closed the year with a turnover of US$13 million. In 2009, CIG held a 3% market share in domestic life insurance and generated over US$40 million in sales. [4]

On 1 January 2010, the company changed its name to CIG Pannonia Life Insurance Ltd. Later that year, the insurer commenced operations as a public limited company. The company's shares have been listed on the Budapest Stock Exchange. The first trading day was November 8, 2010. [5]

Between 2011 and 2015 CIG started its 100% non-life subsidiary, which focuses on domestic SMEs, Institutions of the state and local authorities, companies, professional chambers and associations. [5] Throughout the years the subsidiary grew and stayed profitable. On the other hand, 2015 was the year when CIG broke up with Brokernet, setting up an all-time low at 135 HUF. This event disappointed many individual investors and speculants. [6] As a result, the stock became an unpopular investment in 2016. Between 2016 and 2018 the company attracted another institutional investor, the Konzlum Plc. They bought a 24.85% stake in CIG pushing up the stock price between 400 and 500 HUF. [6]

Regional expansion

The first step of the company's regional expansion was the launch of the sale of its products in Romania in May 2009. Later, in September 2010, the company began its sales activities in Slovakia as well. On 1 September 2010, the Company became a public limited company and is now called CIG Pannónia Life Insurance Plc. (CIG Pannónia Életbiztosító Nyrt.). The subscription procedure in October 2010 was highly successful and drew massive public interest. Later, after the initial public offering, the Company requested to be listed on the Budapest Stock Exchange and from 2011 listed on BSE's prime market. [7] [8]

In April 2012 CIG started a cross-border service in Poland in the non-life segment. Followed by the Baltic States in 2013. The company launched their cross-border service in the non-life segment in Italy in September 2014 and in Spain in September 2017. [5]

Products and business model

The main products include unit-linked life insurance and pension insurance, but CIG also sells traditional life insurance, funeral insurance, endowment and term life insurance and health insurance. Its subsidiary operates the property insurance business not only in Hungary but also in many European countries through cross-border services. [9]

CIG is primarily active in the life insurance sector. The most profitable products are pension insurance and unit-linked insurance. [10]

Owners and management

Former Minister of Finance and chairman of the central bank Zsigmond Járai was appointed to chair the supervisory board, which represents the owners. Béla Horváth, former top executive of various Hungarian insurance companies, was appointed as the chairman of the board of directors. The position of the CEO has been filled by dr. Ottó Csurgó since 18 April 2012, who is also the CEO of CIG Pannónia First Hungarian General Insurance Plc. The company is heir in spirit to the First Hungarian General Insurance Company (Első Magyar Általános Biztosító Társaság) founded in 1857 by Henrik Lévay. In those days, as well as nowadays, Hungary lacked an insurance company run by Hungarian management, focusing on the Hungarian market and supported and privately financed by recognized and credible Hungarian personalities. Back then, just like today, it was necessary to have a professional leader with an intimate knowledge of the local economy and the opportunities of the insurance market, who had the organisational expertise necessary to build an entire new insurance company, who had significant past achievements and could convince major supporters to back the cause of founding a new insurance company.

In September 2020, the company liquidated its Hungarian subsidiary, CIG Pannónia Pénzügyi Közvetítő Zrt, [11] in which Hungarikum Alkusz Kft, owned by Erik Keszthelyi and Lőrinc Mészáros, subsequently acquired a 25% stake. [12] From 1 October 2020, István Fedák took over as CEO, replacing Gabriella Kádár, [13] [14] who had previously held the position for 6 years. [15] From January 2021, Zoltán Polányi became chairman of the board of directors and the other CEO alongside Fedák. [16]

In October 2021, CIG Pannónia announced that Hungarikum Biztosítási Alkusz Kft. had acquired 55.5 percent of the voting shares in the listed company, making it the majority shareholder. [16] In September 2022, Hungarikum increased its ownership by a further one and a half percent. [17]

Related Research Articles

<span class="mw-page-title-main">Magyar Telekom</span> Hungarian telecommunications service

Magyar Telekom Nyrt. is one of the leading Hungarian telecommunications service provider company. It is a subsidiary of Deutsche Telekom.

<span class="mw-page-title-main">Wizz Air</span> Low-cost airline of Hungary

Wizz Air Holdings plc is a Hungarian ultra low-cost carrier group registered in Jersey. The company includes the subsidiaries Wizz Air Hungary, Wizz Air Malta, Wizz Air Abu Dhabi and Wizz Air UK. The airlines serve numerous cities across Europe, as well as some destinations in North Africa, the Middle East, South, and Central Asia. As of 2023, the airline group has its largest bases at Budapest Ferenc Liszt International Airport, Bucharest Henri Coandă International Airport and London Luton Airport and flies to 194 airports. The holding company is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.

<span class="mw-page-title-main">OTP Bank</span> Hungarian financial services provider

OTP Bank Group is the largest commercial bank of Hungary and one of the largest independent financial service providers in Central and Eastern Europe, with banking services for private individuals and corporate clients. The OTP Group comprises subsidiaries in the field of insurance, real estate, factoring, leasing and asset management, investment and pension funds. Besides Hungary, OTP Group operates in 11 countries of the region via its subsidiaries: in Albania, in Bulgaria, in Croatia, in Romania, in Serbia, in Slovenia, in Ukraine, in Moldova, in Montenegro, in Russia, and in Uzbekistan.

<span class="mw-page-title-main">Gedeon Richter (company)</span> Hungarian pharmaceutical company

Gedeon Richter Plc. is a European multinational pharmaceutical and biotechnology company headquartered in Budapest. It is the largest pharmaceutical company in Central and Eastern Europe, with an expanding direct presence in Western Europe, China, Northern America and Latin America. Richter has the largest R&D unit in Central and Eastern Europe and operations in over 100 countries.

<span class="mw-page-title-main">Budapest Stock Exchange</span> Stock exchange in Budapest, Hungary

Budapest Stock Exchange(BSE) (Hungarian: Budapesti Értéktőzsde (BÉT)) is the 2nd largest stock exchange in Central and Eastern Europe by market capitalization and liquidity. It is located at 55 Krisztina Boulevard, Budapest, Hungary, in the Buda Centre of the Hungarian National Bank Previously, from 1864, during the Austro-Hungarian Empire it was located in the Budapest Stock Exchange Palace building, until a large trading floor was necessary. The exchange is controlled by listed issuers, by Hungarian private investors and by the central bank. The BSE is member of the World Federation of Exchanges and the Federation of European Securities Exchanges.

<span class="mw-page-title-main">MOL (company)</span> Hungarian Oil and Gas Public Limited Company

MOL Plc., also known as MOL Group, is a Hungarian multinational oil and gas company headquartered in Budapest, Hungary. Members of MOL Group include among others the Croatian and Slovak formerly state-owned oil and gas companies, INA and Slovnaft. MOL is Hungary's most profitable enterprise, with net profits of $770 million in 2019. The company is also the third most valuable company in Central and Eastern Europe and placed 402 on the Fortune Global 500 list of the world's largest companies in 2013.

<span class="mw-page-title-main">MKB Bank</span> State-controlled bank in Hungary

MKB Bank, initially Magyar Külkereskedelmi Bank, was a Hungarian state-owned bank founded in 1950. It was privatized in the mid-1990s, then renationalized in the 2010s. It eventually merged in the early 2020s with Budapest Bank and Takarékbank to form Magyar Bank Holding, branded MBH Bank, thus creating the second-largest commercial bank in Hungary behind OTP Bank. The complex three-way merger was announced in 2020 and completed in 2023.

<span class="mw-page-title-main">CIB Bank</span> Bank in Hungary

CIB Bank is the second-biggest commercial bank in Hungary, after the 1 January 2008 merger with Inter-Európa Bank. This follows the 2007 merger of their respective Italian parent companies, Banca Intesa and Sanpaolo IMI to form Intesa Sanpaolo.

<span class="mw-page-title-main">K&H Bank</span> Bank in Hungary

K&H Bank is one of the biggest commercial banks in Hungary, owned by the Brussels-based KBC Group since 1999.

<span class="mw-page-title-main">Healthcare in Hungary</span>

Hungary has a tax-funded universal healthcare system, organized by the state-owned National Health Insurance Fund. While healthcare is considered universal, several reasons persist preventing Hungarian nationals to access healthcare services. For instance, a Hungarian citizen who lived abroad but is unable to show contributions to another country's healthcare system will not be able to access the Hungarian healthcare system free of charge. However, to the OECD, 100% of the total population is covered by universal health insurance, which is absolutely free for children, mothers or fathers with babies, students, pensioners, people with low income, handicapped people, priests and other church employees. In 2022 the cost of public health insurance is 8,400 HUF per month which is the equivalent of $23.69. The healthcare system underwent significant changes which also resulted in improving life expectancy and a very low infant mortality rate. According to the OECD Hungary spent 7.8% of its GDP on health care in 2012. Total health expenditure was $US1,688.7 per capita in 2011, US$1,098.3governmental-fund (65%) and US$590.4 private-fund (35%).

Zsigmond Járai is a Hungarian politician, who served as Minister of Finance between 1998 and 2000. He was the President of the Budapest Stock Exchange between 1996 and 1998. After his ministership he was appointed President of the Hungarian National Bank. Járai was succeeded by András Simor in 2007.

<span class="mw-page-title-main">Christopher Mattheisen</span>

Christopher Mattheisen is an American businessman and economist. He was the managing director of Microsoft Hungary from March 4, 2019. From 2006 to 2018, he was the CEO of Hungarian telecommunications company Magyar Telekom.

Hungarian Development Bank Private Limited Company or Hungarian Development Bank, in short, is a credit institution fully owned by the government of Hungary.

TakarékBank was a banking and financial services corporation in Hungary and the central institution for more than 60 co-operative banks and their 1,100 branch offices. In 2023, it merged with MKB Bank to form MBH Bank.

<span class="mw-page-title-main">Zsolt Hernádi</span> Hungarian businessman (born 1960)

Zsolt Hernádi is a Hungarian businessman and the Chairman-CEO of MOL Plc., the Hungarian Oil & Gas company, since 2001.

<span class="mw-page-title-main">Éva Hegedüs</span> Hungarian economist

Éva Hegedüs is an economist, the founding Chairman-CEO and shareholder through E.P.M. Ltd. of Gránit Bank.

<span class="mw-page-title-main">Lőrinc Mészáros</span> Hungarian businessman and former politician

Lőrinc Mészáros is a Hungarian businessman, and former politician, who served as Mayor of the Hungarian village Felcsút between 2011 and 2018. With an estimated wealth of 436 billion forint ($1.3 billion) as of 2022, he is, according to Forbes, the third richest person in Hungary. Several media outlets refer to him as "oligarch".

Opus Global is a Hungarian industrial conglomerate and asset management company, headquartered in Budapest, Hungary. Opus Global's subsidiaries play a significant role in Hungary's strategically important industries.

<span class="mw-page-title-main">Erik Keszthelyi</span> Insurance professional, businessman

Erik Keszthelyi is a Hungarian economist and owner of Hungarikum Biztosítási Alkusz, the largest Hungarian-owned insurance broker, which also owns a majority stake in CIG Pannonia. He is also the 47th richest person in Hungary as of 2023.

<span class="mw-page-title-main">József Vida (banker)</span> Hungarian economist (born 1973)

József Vida is a Hungarian economist, chairman of the board of Opus Global, former CEO of Takarékbank, and, as of 2023, with 15 billion HUF the 98th richest Hungarian.

References

  1. ↑ "Annual Report 2017" (PDF).
  2. ↑ "Our founders". www.cigpannonia.hu. Archived from the original on 2019-12-05. Retrieved 2019-12-05.
  3. ↑ "CIG Pannónia signs strategic cooperation agreement with Brokernet". Budapest Business Journal. Archived from the original on 2019-12-05. Retrieved 2019-12-05.
  4. ↑ "Achievements". www.cigpannonia.hu. Archived from the original on 2012-05-13. Retrieved 2019-12-05.
  5. 1 2 3 "Annual Report 2017" (PDF). CIG Pannonia Life Insurance Plc. 2018-03-12. Archived (PDF) from the original on 2019-12-20. Retrieved 2019-12-20.
  6. 1 2 "CIG Pannonia, the Hungarian Insurance Company as a Value Investment - GuruFocus.com". www.gurufocus.com. Retrieved 2020-01-16.
  7. ↑ "Stock Ticker Symbol Lookup - MarketWatch". www.marketwatch.com. Retrieved 2019-12-05.
  8. ↑ "0CK Profile & Executives - CIG Pannonia Life Insurance PLC - Bloomberg". www.bloomberg.com. Archived from the original on 2014-04-21.
  9. ↑ "Company profile". Bet site. Retrieved 2020-03-19.
  10. ↑ "CIG Pannonia, the Hungarian Insurance Company as a Value Investment - GuruFocus.com". www.gurufocus.com. Retrieved 2020-03-19.
  11. ↑ "Beszántja pénzügyi közvetítő cégét a CIG Pannónia". Portfolio.hu (in Hungarian). Retrieved 2022-09-12.
  12. ↑ "Közel 25%-os tulajdonrészt szerzett a Hungarikum Alkusz a CIG Pannóniában". Portfolio.hu (in Hungarian). Retrieved 2022-09-12.
  13. ↑ "Új vezérigazgató a CIG EMABIT élén". Portfolio.hu (in Hungarian). Retrieved 2022-09-12.
  14. ↑ "Távozik a CIG Pannónia vezérigazgatója, meg is van a leendő utódja". Portfolio.hu (in Hungarian). Retrieved 2022-09-12.
  15. ↑ "CIG Pannónia Életbiztosító Nyrt (BUSE:CIGPANNONIA) Stock Price & Quote Analysis". Simply Wall St. Retrieved 2022-09-12.
  16. 1 2 "Vezetőség | CIG Pannónia Biztosító". www.cigpannonia.hu. Retrieved 2022-09-12.
  17. ↑ "EGYÉB TÁJÉKOZTATÁS a szavazati jogot biztosító részvények bejelentés szerinti – határértéket el nem érő – változásáról". Default (in Hungarian). Retrieved 2022-09-12.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.