Profits/Losses of Insurance Companies and Pension Funds
Commentary | Contents |
In January to December insurance companies (CZ-NACE 66.01 and 66.03) made pre-tax profits amounting to CZK 5,5 billion, which translates into an increase of 25,8% compared to the corresponding period of the previous year.
In the four quarters of 2003 gross premiums written stood at CZK 104,1 billion, accounting for 26,9% of total revenues and growing by 15,1% year-on-year. Insurance claims paid amounted to CZK 58,6 billion, making up 15,3% of total expenses of the insurance companies. Costs of these insurance claims were down by 1,1% year-on-year. Over the period of January to December total technical provisions for life insurance increased by CZK 18,4 billion to CZK 129,2 billion.
In the four quarters of 2003 all of the 39 insurance companies employed a total of 15 482 employees (actual persons) on average, i.e., by 0,2% less that in the four quarters of 2002. In terms of full-time equivalent (fte) persons, the average registered number of employees was 15 381; the employment thus increased by 0,3%. The average monthly wage (related to the fte persons) was 27 685 CZK, increasing by 1,0% on the four quarters of 2002.
Pension funds (CZ-NACE 66.02) made their profits amounting to CZK 2,4 billion in the four quarters of 2003 (a decrease of 14,1% year-on-year). Total expenses of all of the 12 active pension funds reached CZK 3,1 billion, falling by 10,9% year-on-year. Total revenues decreased by 12,3% year-on-year to CZK 5,4 billion. Financial expenses were 49,8% of total expenses and financial revenues accounted for 96,8% 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 four quarters of 2003 saw total technical provisions of pension funds growing by CZK 13,3 billion to CZK 77,0 billion as at 31 December. Contributions received from members and employers (excluding government contributions) stood at CZK 17,2 billion, increasing by 16,8% year-on-year. Government contributions increased by 3,5% on the four quarters of 2002 and amounted to CZK 3,0 billion. Supplementary pension insurance benefits paid stood at CZK 7,4 billion, which is a year-on-year increase of 8,5%.
There were 2 714 069 active supplementary pension insurance policy holders (members of pension schemes) in total on 31 December 2003. The number increased by 93 974 persons (3,6%) year-on-year. Of the total, 2 599 240 persons received state contributions. The number of pension recipients increased by 2 444 year-on-year to 8 045 persons.
All of the pension funds employed a total of 475 actual persons on average in the four quarters of 2003, by 11,6% less than in the same period of 2002. This employment in terms of full-time equivalent stood at 469 persons and fell by 10,9% year-on-year. The average monthly wage related to fte persons amounted to 33 267 CZK and was up by 4,6% year-on-year.