Economic Results of Insurance Companies and Pension Funds

In the first quarter of 2005 gross premiums written stood at CZK 32,2 billion, accounting for 34,3 % of total revenues and falling by 4,8 % year-on-year. Insurance claims paid amounted to CZK 12,6 billion, making up 14,2 % of total expenses of the insurance companies. Costs of these insurance claims fell by 17,9 % year-on-year. Over the period of January to the end of March, total technical provisions for life insurance increased by CZK 4,4 billion to CZK 148,4 billion.

In the 1st quarter of 2005 all of the 41 insurance companies employed a total of 14 499 employees (actual persons) on average, i.e., by 6,0 % less than in the corresponding period of 2004. In terms of full-time equivalent (fte) persons, the average registered number of employees was 14 376; the employment thus decreased by 6,1 % as well. The average monthly wage (related to the fte persons) was 33 272 CZK, increasing by 8,6 % on the first quarter of 2005.

During the first quarter of 2005 there were concluded 1 190 037 non-life insurance contracts, by 6,8 % more than in the same period of the previous year. The number of life insurance contracts concluded during the observed period of 2005 is 221 402, which translates into a decrease of 22,9 %.

In the 1st quarter of 2005 pension funds (CZ-NACE 66.02) made their profits amounting to CZK 1,2 billion (an increase of 138,8 % year-on-year). Total expenses of 11 active pension funds during the period from January to the end of March reached CZK 0,7 billion, dropping by 8,8 % year-on-year. Total revenues increased by 52,0 % year-on-year to CZK 1,9 billion. Financial expenses were 36,3 % of total expenses and financial revenues accounted for 98,4 % of total revenues.

The 1st quarter of 2005 saw total technical provisions of pension funds growing by CZK 3,8 billion to CZK 97,8 billion. Contributions received from members and employers (excluding government contributions) stood at CZK 5,4 billion, increasing by 14,0 % year-on-year. Government contributions increased by 15,5 % in the observed period of 2005 and amounted to CZK 0,9 billion. Supplementary pension insurance benefits paid stood at CZK 2,4 billion, which is a year-on-year growth of 26,3 %.

There were 3 027 909 active supplementary pension insurance policy holders (members of pension schemes) in total on 31st March 2005. The number increased by 255 673 persons (9,2 %) year-on-year. Of the total, 2 960 541 persons received government contributions. The number of pension recipients dropped by 1 110 to 5 965 persons since the beginning of 2005.

All of the pension funds employed a total of 467 actual persons on average in the first quarter of 2005, by 2,3 % less than in the same period of 2004. This employment in terms of full-time equivalent stood at 450 persons and fell by 4,7 % year-on-year. The average monthly wage related to fte persons amounted to 38 320 CZK and was up by 12,7 % year-on-year.