Economic Results of Insurance Companies and Pension Funds

In the first four quarters of 2004 gross premiums written stood at CZK 112,3 billion, accounting for 30,7 % of total revenues and growing by 6,3 % year-on-year. Insurance claims paid amounted to CZK 58,3 billion, making up 16,5 % of total expenses of the insurance companies. Costs of these insurance claims fell by 2,8 % year-on-year. Over the period of January to December total technical provisions for life insurance increased by CZK 11,9 billion to CZK 144,0 billion.

In the 1st to 4th quarter of 2004 all of the 40 insurance companies employed a total of 15 003 employees (actual persons) on average, i.e., by 2,7 % less than in the quarters of 2003. In terms of full-time equivalent (fte) persons, the average registered number of employees was 14 896; the employment thus decreased by 2,8 % as well. The average monthly wage (related to the fte persons) was 30 699 CZK, increasing by 10,7 % on the first half-year of 2003.

In the four quarters of 2004 there were concluded 4 457 743 non-life insurance contracts, by 33,4 % less than in the same period of the previous year. The number of life insurance contracts concluded during the four quarters of 2004 is 1 123 461, which translates into an decrease of 2,7 %.

Pension funds (CZ-NACE 66.02) made their profits amounting to CZK 3,5 billion in January to December of 2004 (a increase of 46,2% year-on-year). Total expenses of 12 active pension funds during the year 2004 reached CZK 3,0 billion, growing by 2,7 % year-on-year. Total revenues increased by 22,3 % year-on-year to CZK 6,4 billion. Financial expenses were 41,8 % of total expenses and financial revenues accounted for 93,0 % of total revenues.

The 1st to 4th quarter of 2004 saw total technical provisions of pension funds growing by CZK 17,0 billion to CZK 94,0 billion as at 31st December. Contributions received from members and employers (excluding government contributions) stood at CZK 19,4 billion, increasing by 12,8 % year-on-year. Government contributions increased by 9,8 % on the four quarters of 2004 and amounted to CZK 3,2 billion. Supplementary pension insurance benefits paid stood at CZK 7,4 billion, which is a year-on-year growth of 1,1 %.

There were 2 955 703 active supplementary pension insurance policy holders (members of pension schemes) in total on 31st December 2004. The number increased by 241 634 persons (8,9 %) year-on-year. Of the total, 2 886 150 persons received government contributions. The number of pension recipients dropped by 970 to 7 075 persons since the beginning of 2004.

All of the pension funds employed a total of 476 actual persons on average in the year of 2004, by 0,1 % more than in the same period of 2003. This employment in terms of full-time equivalent stood at 467 persons and fell by 0,5 % year-on-year. The average monthly wage related to fte persons amounted to 39 365 CZK and was up by 18,8 % year-on-year.