Economic Results of Insurance Companies and Pension Funds

In January to September insurance companies (CZ-NACE 66.01 and 66.03) made pre-tax profits amounting to CZK 11,3 billion, which translates into an increase of 118,7 % compared to the corresponding period of the previous year.

In the first three quarters of 2004 gross premiums written stood at CZK 84,9 billion, accounting for 26,1 % of total revenues and growing by 9,7 % year-on-year. Insurance claims paid amounted to CZK 42,5 billion, making up 13,5 % of total expenses of the insurance companies. Costs of these insurance claims fell by 1,3 % year-on-year. Over the period of January to September total technical provisions for life insurance increased by CZK 10,1 billion to CZK 139,3 billion.

In the 1st to 3rd quarter of 2004 all of the 39 insurance companies employed a total of 15 105 employees (actual persons) on average, i.e., by 2,4 % less than in the first three quarters of 2003. In terms of full-time equivalent (fte) persons, the average registered number of employees was 14 997; the employment thus decreased by 2,4 % as well. The average monthly wage (related to the fte persons) was 30 534 CZK, increasing by 12,8 % on the first half-year of 2003.

In the first three quarters of 2004 there were concluded 5 009 539 non-life insurance contracts, by 2,6 % less than in the same period of the previous year. The number of life insurance contracts concluded during the first two quarters of 2004 is 904 368, which translates into an increase of 19,2 %.

Pension funds (CZ-NACE 66.02) made their profits amounting to CZK 2,2 billion in January to September of 2004 (a increase of 13,8% year-on-year). Total expenses of all of the 12 active pension funds reached CZK 2,2 billion, growing by 8,8 % year-on-year. Total revenues increased by 11,2 % year-on-year to CZK 4,4 billion. Financial expenses were 49,8 % of total expenses and financial revenues accounted for 90,7 % of total revenues.

The 1st to 3rd quarter of 2004 saw total technical provisions of pension funds growing by CZK 12,2 billion to CZK 89,1 billion as at 30th September. Contributions received from members and employers (excluding government contributions) stood at CZK 14,0 billion, increasing by 11,4 % year-on-year. Government contributions increased by 9,0 % on the first three quarters of 2004 and amounted to CZK 2,4 billion. Supplementary pension insurance benefits paid stood at CZK 5,6 billion, which is a year-on-year drop of 4,5 %.

There were 2 867 329 active supplementary pension insurance policy holders (members of pension schemes) in total on 30th September 2004. The number increased by 197 165 persons (7,4 %) year-on-year. Of the total, 2 787 586 persons received government contributions. The number of pension recipients dropped by 742 to 7 303 persons since the beginning of 2004.

All of the pension funds employed a total of 473 actual persons on average in the first half-year of 2004, by 1,1 % less than in the same period of 2003. This employment in terms of full-time equivalent stood at 466 persons and fell by 1,3 % year-on-year. The average monthly wage related to fte persons amounted to 38 008 CZK and was up by 16,6 % year-on-year.