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Published:
This is an archived release.
Lower profits in insurance industry
The development in the marked of securities during the second quarter in 2006 caused a decline in the income from the financial assets in both the life- and non-life insurance companies. This contributed to a weaker profit compared with the first quarter.
There has occurred an error in our calculation of the premiums and claims occurred in the profit/loss account, both for the life- and non-life insurance companies. The tables which are attached are correct, the error has only occurred in tables in the article. We have corrected the mistake, and changed the definition of the variables from gross to net variables. Even though the figures are changed, the variable trend is unchanged. |
The earned premiums increased by 6 per cent since the second quarter of 2005, while the claims incurred increased by 37 per cent. For the first time in over three years, the life insurance industry achieved unrealised losses, by NOK 4.6 billion. The net income from the financial assets was 28 per cent lower since the same period last year. The profit was higher than in the first quarter, but this is mainly because of the NOK 5.7 billion from the revaluation reserve that was recorded as an income.
| Life insurance. Profit and loss account. NOK million |
| 2nd quarter 2006 | 2nd quarter 2005 | ||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earned premiums, exclusive of transfers to other companies | 36 619 | 34 467 | |||||||||||||||||||||||||||||||||||||
| Claims incurred | 24 434 | 17 827 | |||||||||||||||||||||||||||||||||||||
| Profit/loss before tax and allocation to customers | 9 098 | 6 295 | |||||||||||||||||||||||||||||||||||||
| Net income from financial assets | 12 428 | 17 250 | |||||||||||||||||||||||||||||||||||||
| Value-adjusted profit/loss | 3 777 | 8 558 | |||||||||||||||||||||||||||||||||||||
The total assets increased by NOK 4 billion since the first quarter. This is a substantial lower growth compared with the last quarters. The bonds amounted to 49 per cent of the total assets, while the share of the investments in subsidiaries and other shares, participation and primary capital certificates amounted to 30 per cent. The stock of the certificates continued to fall, and represents now only 4 per cent of the total assets.
| Life insurance. Balance sheet. NOK million |
| 2nd quarter 2006 | 2nd quarter 2005 | ||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | 638 636 | 567 595 | |||||||||||||||||||||||||||||||||||||
| Investments in subsidiaries and other shares, participation and primary capital certificates | 192 805 | 146 242 | |||||||||||||||||||||||||||||||||||||
| Holdings of bonds | 311 207 | 278 183 | |||||||||||||||||||||||||||||||||||||
| Holdings of certificates | 24 225 | 39 281 | |||||||||||||||||||||||||||||||||||||
The non-life insurance industry has also experienced a decline in the net income from the financial assets. This decline amounted to 36 per cent since the same period last year. This, combined with a larger growth in the claims incurred than in the earned premiums, gave the non-life insurance companies a weaker profit compared to the same period last year.
| Non-life insurance. Profit and loss account. NOK million |
| 2nd quarter 2006 | 2nd quarter 2005 | ||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earned premiums | 21 291 | 20 146 | |||||||||||||||||||||||||||||||||||||
| Claims incurred | 14 303 | 13 319 | |||||||||||||||||||||||||||||||||||||
| Profit/loss of ordinary activities | 3 032 | 4 688 | |||||||||||||||||||||||||||||||||||||
| Net income from financial assets | 2 371 | 3 697 | |||||||||||||||||||||||||||||||||||||
| Profit/loss of the technical account | 2 264 | 2 246 | |||||||||||||||||||||||||||||||||||||
The total assets increased by only one per cent since the first quarter, and amounted to NOK 140 billion at the end of the second quarter. The bonds amounted to 21 per cent of the total assets, while the share of the investments in subsidiaries and other shares, participation and primary capital certificates amounted to 32 per cent. The stock of the certificates continued to fall, and has decreased by 6 percentage pointes since the second quarter of 2005. As a share of the total assets, the certificates now represent 9 per cent.
| Non-insurance. Balance sheet. NOK million |
| 2nd quarter 2006 | 2nd quarter 2005 | ||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | 140 282 | 128 035 | |||||||||||||||||||||||||||||||||||||
| Investments in subsidiaries and other shares, participation and primary capital certificates | 29 137 | 19 490 | |||||||||||||||||||||||||||||||||||||
| Holdings of bonds | 44 740 | 37 903 | |||||||||||||||||||||||||||||||||||||
| Holdings of certificates | 12 313 | 18 835 | |||||||||||||||||||||||||||||||||||||
Tables
Contact
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Kjell Hammer
E-mail: kjell.hammer@ssb.no
tel.: (+47) 40 90 26 76
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Ola Tveita
E-mail: ola.tveita@ssb.no
tel.: (+47) 99 73 45 83