Life and non-life insurance companies, accounts, 2004

Life insurance: Increased profits

The profit before tax and allocation to customers increased by 36 per cent in 2004, and amounted to NOK 9.9 billion. The adjusted result decreased by NOK 2 billion, which mainly was caused by lower appropriations to the revaluation reserve and additional transfers. The net income from the financial assets decreased by 10.8 per cent form 2003, and amounted to NOK 32 billion by the end of 2004.

The earned premiums, exclusive of transfers to other companies increased by 23.2 per cent, which to a large extent was caused by the reduction in the minimum guaranteed interest rate from 4 to 3 per cent. The claims incurred increased by almost NOK 3 billion, which is equivalent to 12.9 per cent.

The positive development in the national and international security market during 2004 is reflected in the value of the total assets for the life insurance industry, which grew by 11.4 per cent in 2004. It amounted to NOK 537 billion by the end of 2004. Investments in subsidiaries and other shares, participation and primary capital certificates increased by NOK 35 billion and amounted to 25.1 per cent of the total assets.

The value of the holdings of bonds increased by 8.4 per cent, while the value of the holdings of certificates decreased by an equivalent proportion. Both the holdings of bonds and certificates decreased their shares of the total assets by 1.4 percentage points since 2003, and amounted to 50.2 and 6.3 per cent of the total assets.

The profit of the technical account increased for the non-life insurance industry in 2004 compared with 2003.The profit amounted to almost NOK 1 billon, and by that increased by 29.9 per cent. The earned premiums increased by 4.3 per cent in 2004, while the claims incurred decreased by 6.1 per cent. This is probably the main cause for the strengthened profit of the technical account.

The profit of the ordinary activities amounted to NOK 2.5 billion. This is lower compared with the profit in 2003, but still much better than the previous years. The net income form the financial assets amounted to NOK 3.7 billion. This is a reduction compared with 2003, when the corresponding figure was NOK 8.1 billion.

Also for the non-life insurance industry the total assets increased, more precisely by 9.3 per cent. The value of all the securities increased, and the holdings of bonds, which is the largest holding, increased by 11.1 per cent since 2003. The holdings of bonds amounts to 26.7 per cent of the total assets, while 16.9 per cent were the holdings certificates by the end of 2004. The holdings of certificates as a share of the total assets increased by 4.3 per cent in 2004. Investments in subsidiaries and other shares, participation and primary capital certificates amounted to 13.9 per cent of the total assets, and increased its value by 10.7 per cent.

Tables

Published tables