CIG Pannónia Életbiztosító : 2022 Consolidated Financial Statements IFRS

I N S U R A N C E

I N S U R A N C E

2022

ANNUAL REPORT

I N S U R A N C E

KEY INDICATORS IN 2022

1,208	32,346
billion HUF	billion HUF
Result after	Insurance premium
taxation	income

200%	8,872
consolidated	billion HUF
capital adequacy	Shareholder's
under Solvency II
equity

Key indicators in 2022	2

I N S U R A N C E

CONTENTS

Presidential welcome	4
History	7
Information for shareholders	14
Corporate governance	25
Life insurance products	31
Non-life insurance products	37
Our motor vehicle insurance products	41
Our business goals for the financial year 2023	43

I. CONSOLIDATED FINANCIAL
STATEMENTS	47
Consolidated Statement of Comprehensive Income	48
Consolidated statement of financial position	50
Consolidated Changes in Equity 2022	52
Consolidated Statement of Cash Flows	54
Notes to the consolidated financial statements	56

II. CONSOLIDATED BUSINESS

REPORT255

3

I N S U R A N C E

PRESIDENTIAL

WELCOME

Ladies and Gentlemen!

Dear Shareholders!

In the last 2-3 years, most letters to shareholders of listed companies have begun with the extraordinary events and previously unknown or long forgotten risks that the previous period had brought into our lives: the pandemic and the restrictions it brought, the war in our neighborhood and sanctions, the dramatic increase in energy prices and runaway inflation were all such, just to name a few.

Presidential welcome	4

I N S U R A N C E

Risk and the resulting uncertainty are, however, at the core of an insurer's life. The most basic service that an insurer provides is that it "stands at risk" to protect its customers by providing predictable, stable cover for future, uncertain events. The expectations of our contractors are clear: we must provide certainty in the face of growing uncertainty.

Looking at our results for the financial year 2022, CIG Pannónia Life Insurance Plc - as an insurer and at group level - met this expectation in absolute terms. The fact that the consolidated premium income of the insurer increased by 42% year-on-year to HUF 32.3 billion, while the number of policies managed by the CIG Pannónia Group increased by 30% to 94 thousand, can hardly be seen as anything other than the trust of our customers in our company. The significant increase in the number of contracts managed by CIG EMABIT Ltd. in 2022 is particularly worth mentioning, as we have managed to increase the initial portfolio of a few hundred contracts to more than sixteen thousand through the trust of our clients.

We have done a lot for this trust: in March 2022, our LakóTárs Extra home insurance product was among the first to receive the Certified Consumer Friendly Home Insurance certification from the Hungarian National Bank. We have made great progress in our claims settlement process: in the fourth quarter of 2022, we settled fully documented claims in an average of 5.3 days. In addition to speed, our customers are increasingly satisfied with the courtesy and helpfulness of our colleagues and the quality of customer service.

In addition to retail customers, we were not idle in the corporate segment either. In 2022, many large companies and organizations honored us with their trust and took out group insurance with our company. Among these, I would highlight our strategic agreement with the MKB Health Fund, through which more than 100,000 customers joined our solidarity insurance product.

We have also expanded the range of our product partners: after our strategic cooperation with Magyar Bankholding since 2021, which has been increasingly stable and unique also in the international environment, we entered into another long-term strategic alliance in May, this time with Euroleasing Financial Services Ltd.

Our constantly improving performance was rewarded by the market environment as well: the number of our brokerage partners increased from 20 to 217. Our important goal for CIG Pannónia Life Insurance Plc. is to become a widely recognized and even preferred partner among insurance brokers.

In the past year, we have also paid special attention to the capital market transparency, and to the sustainability and improvement of company management: it was just recently in the news, that the aggregate transparency score of CIG Pannónia Life Insurance Plc achieved the highest increase among BUX members in 2022.

We consider it a serious recognition that in November our company was awarded the title "Financial Enterprise of the Year" at the Figyelő TOP200 gala.

We are also proud to have been chosen in 2022 by a number of prominent insurance professionals, who newly joined our Company. We are pleased that we have been able to retain our talent in the difficult market environment. By today the most and best of our team forms a stable group, whose quality rivals that of any of our competitors. Allow me therefore, on behalf of the Board of Directors, to thank our colleagues for their work, per- severance, and loyalty.

As outlined in our annual report, the objectives of the company's new strategy announced in 2021 were met also in the last year. With the consistent implementation of the strategy, the restart phase of the insurance company can be considered completed. The

Presidential welcome	5