Profits/Losses of Insurance Companies and Pension Funds
Commentary | Contents |
In January to September insurance companies (CZ-NACE 66.01 and 66.03) made pre-tax profits amounting to CZK 5,2 billion, which translates into an increase of 270,5% compared to the corresponding period of the previous year.
In the first three quarters of 2003 gross premiums written stood at CZK 77,4 billion, accounting for 27,9% of total revenues and growing by 12,2% year-on-year. Insurance claims paid amounted to CZK 43,1 billion, making up 15,8% of total expenses of the insurance companies. Costs of these insurance claims were up by 19,8% year-on-year. Over the period of January to September total technical provisions for life insurance increased by CZK 15,7 billion to CZK 126,4 billion.
In the first three quarters of 2003 all of the 39 insurance companies employed a total of 15 475 employees (actual persons) on average, i.e., by 0,3% less that in the first three quarters of 2002. In terms of full-time equivalent (fte) persons, the average registered number of employees was 15 369; the employment thus fell by 0,2%. The average monthly wage (related to the fte persons) was 27 078 CZK, increasing by 2,5 % on the first three quarters of 2002.
Pension funds (CZ-NACE 66.02) made their profits amounting to CZK 1,9 billion in the first three quarters of 2003 (a decrease of 1,0% year-on-year). Total expenses of all of the 12 active pension funds reached CZK 2,0 billion, falling by 15,4% year-on-year. Total revenues decreased by 9,0% year-on-year to CZK 4,0 billion. Financial expenses were 45,2% of total expenses and financial revenues accounted for 96,3% 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 three quarters of 2003 saw total technical provisions of pension funds growing by CZK 9,6 billion to CZK 73,2 billion as at 30 September. Contributions received from members and employers (excluding government contributions) stood at CZK 12,6 billion, increasing by 16,6% year-on-year. Government contributions increased by 2,9% on the first three quarters of 2002 and amounted to CZK 2,2 billion. Supplementary pension insurance benefits paid stood at CZK 5,9 billion, which is a year-on-year increase of 27,4%.
There were 2 670 164 active supplementary pension insurance policy holders (members of pension schemes) in total on 30 September 2003. The number increased by 65 673 persons (2,5%) year-on-year. Of the total, 2 578 357 persons received state contributions. The number of pension recipients increased by 1 065 year-on-year to 7 630 persons.
All of the pension funds employed a total of 479 actual persons on average in the first three quarters of 2003, by 13,1% less than in the same period of 2002. This employment in terms of full-time equivalent stood at 472 persons and fell by 12,6% year-on-year. The average monthly wage related to fte persons amounted to 32 598 CZK and was up by 14,1% year-on-year.