Economic Results of Insurance Companies and Pension Funds

In the first half-year of 2005 gross premiums written stood at CZK 60,9 billion, accounting for 31,8 % of total revenues and falling by 0,3 % year-on-year. Insurance claims paid amounted to CZK 26,9 billion, making up 14,5 % of total expenses of the insurance companies. Costs of these insurance claims fell by 13,0 % year-on-year. Over the period of January to the end of June, total technical provisions for life insurance increased by CZK 11,8 billion to CZK 155,7 billion.

In the 1st half-year of 2005 all of the 43 insurance companies employed a total of 14 492 employees (actual persons) on average, i.e., by 5,1 % less than in the corresponding period of 2004. In terms of full-time equivalent (fte) persons, the average registered number of employees was 14 363; the employment thus decreased by 5,2 % as well. The average monthly wage (related to the fte persons) was 32 405 CZK, increasing by 5,5 % on the first half-year of 2005.

During the first two quarters of 2005 there were concluded 2 351 563 non-life insurance contracts, by 1,7 % more than in the same period of the previous year. The number of life insurance contracts concluded during the observed period of 2005 is 457 364, which translates into a decrease of 25,3 %.

In the 1st half-year of 2005 pension funds (CZ-NACE 66.02) made their profits amounting to CZK 2,2 billion (an increase of 78,9 % year-on-year). Total expenses of 11 active pension funds during the period from January to the end of June reached CZK 1,7 billion, rising by 10,6 % year-on-year. Total revenues increased by 41,4 % year-on-year to CZK 3,9 billion. Financial expenses were 44,8 % of total expenses and financial revenues accounted for 98,8 % of total revenues.

The 1st half-year of 2005 saw total technical provisions of pension funds growing by CZK 9,7 billion to CZK 103,6 billion. Contributions received from members and employers (excluding government contributions) stood at CZK 10,8 billion, increasing by 16,9 % year-on-year. Government contributions increased by 13,2 % in the observed period of 2005 and amounted to CZK 1,8 billion. Supplementary pension insurance benefits paid stood at CZK 4,7 billion, which is a year-on-year growth of 25,9 %.

There were 3 140 644 active supplementary pension insurance policy holders (members of pension schemes) in total on 30th June 2005. The number increased by 184 941 persons (6,3 %) since the beginning of the year. Of the total, 3 105 634 persons received government contributions. The number of pension recipients dropped by 1 397 to 5 678 persons since the beginning of 2005.

All of the pension funds employed a total of 469 actual persons on average in the first quarter of 2005, by 0,8 % less than in the same period of 2004. This employment in terms of full-time equivalent stood at 453 persons and fell by 1,5 % year-on-year. The average monthly wage related to fte persons amounted to 38 822 CZK and was up by 6,2 % year-on-year.