Profits/Losses of Insurance Companies and Pension Funds
Commentary | Contents |
In January to March insurance companies (CZ-NACE 66.01 and 66.03) made pre-tax profits amounting to CZK 1,6 billion, which translates into a decrease of 2,6% compared to the corresponding period of the previous year. Total revenues and total costs of these companies were 45,3% and 45,7% down year-on-year.
In the first quarter of 2003 gross premiums written stood at CZK 30,4 billion, accounting for 31,7% of total revenues and growing by 8,0% year-on-year. Insurance claims paid amounted to CZK 15,9 billion, making up 16,9% of total expenses of the insurance companies. Costs of these insurance claims were up by 65,4% year-on-year. Over the period of January to March total technical provisions for life insurance increased by CZK 2,9 billion to CZK 113,6 billion.
In the first quarter of 2003 all of the 38 insurance companies employed a total of 15 355 employees (actual persons) on average, i.e., by 0,4% less that in the first quarter of 2002. In terms of full-time equivalent (fte) persons, the average registered number of employees was 15 239; the employment thus fell by 0,3%. The average monthly wage (related to the fte persons) was 26 118 CZK, falling by 5,1% on the first of 2002.
Pension funds (CZ-NACE 66.02) made their first quarter gross profits amounting to CZK 0,6 billion (an increase of 18,8% year-on-year). Total expenses of all of the 13 active pension funds reached CZK 0,5 billion, falling by 41,5% year-on-year. Total revenues decreased by 18,9% year-on-year to CZK 1,0 billion. Financial expenses were 32,3% of total expenses and financial revenues accounted for 98,5% of total revenues.
(A methodical change in the bookkeeping system of pension funds was made in 2002 – gross premium written (contributions receivable) and expenses on insurance claims (pensions payable) were excluded from revenues and expenses. For this reason the total and financial revenues and expenses for 2001 and 2002 are not comparable.)
The first quarter of 2003 saw total technical provisions of pension funds growing by CZK 2,5 billion to CZK 66,1 billion as at 31 March. Contributions received from members and employers (excluding government contributions) stood at CZK 4,3 billion, increasing by 25,1% year-on-year. Government contributions increased by 2,9% on the first quarter of 2002 and amounted to CZK 0,7 billion. Supplementary pension insurance benefits paid stood at CZK 2,0 billion, which is a year-on-year increase of 28,2%.
There were 2 650 168 active supplementary pension insurance policy holders (members of pension schemes) in total on 31 March 2003. The number increased by 93 455 persons (3,7%) year-on-year. Of the total, 2 556 536 persons received state contributions. The number of pension recipients increased by 3 838 year-on-year to 7 730 persons.
All of the pension funds employed a total of 489 actual persons on average in the first quarter of 2003, by 13,8% less than in the first quarter of 2002. This employment in terms of full-time equivalent stood at 479 persons and fell by 13,4% year-on-year. The average monthly wage related to fte persons amounted to 33 372 CZK and was up by 17,2% year-on-year.