Economic Results of Insurance Companies and Pension Funds

In January to March 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 226,2% compared to the corresponding period of the previous year.

In the first quarter of 2004 gross premiums written stood at CZK 33,7 billion, accounting for 30,4% of total revenues and growing by 11,1% year-on-year. Insurance claims paid amounted to CZK 15,4 billion, making up 14,5% of total expenses of the insurance companies. Costs of these insurance claims were down by 3,5% year-on-year. Over the period of January to March total technical provisions for life insurance increased by CZK 5,6 billion to CZK 134,8 billion.

In the first quarter of 2004 all of the 38 insurance companies employed a total of 15 420 employees (actual persons) on average, i.e., by 0,4% more than in the first quarter of 2003. In terms of full-time equivalent (fte) persons, the average registered number of employees was 15 309; the employment thus increased by 0,4%. The average monthly wage (related to the fte persons) was 30 537 CZK, increasing by 17,0% on the first quarter of 2003.

Pension funds (CZ-NACE 66.02) made their profits amounting to CZK 0,5 billion in the first quarter of 2004 (a decrease of 8,5% year-on-year). Total expenses of all of the 12 active pension funds reached CZK 0,7 billion, growing by 59,4% year-on-year. Total revenues increased by 22,1% year-on-year to CZK 1,3 billion. Financial expenses were 58,0% of total expenses and financial revenues accounted for 98,7% of total revenues.

The first quarter of 2004 saw total technical provisions of pension funds growing by CZK 3,0 billion to CZK 80,0 billion as at 31st March. Contributions received from members and employers (excluding government contributions) stood at CZK 4,7 billion, increasing by 9,7% year-on-year. Government contributions increased by 6,1% on the first quarter of 2003 and amounted to CZK 0,8 billion. Supplementary pension insurance benefits paid stood at CZK 1,9 billion, which is a year-on-year drop of 2,2%.

There were 2 772 236 active supplementary pension insurance policy holders (members of pension schemes) in total on 31 March 2004. The number increased by 122 068 persons (4,6%) year-on-year. Of the total, 2 665 458 persons received state contributions. The number of pension recipients increased by 548 year-on-year to 8 593 persons.

All of the pension funds employed a total of 478 actual persons on average in the first quarters of 2004, by 2,2% less than in the same period of 2003. This employment in terms of full-time equivalent stood at 472 persons and fell by 1,5% year-on-year. The average monthly wage related to fte persons amounted to 33 901 CZK and was up by 2,5% year-on-year.