Economic Results of Insurance Companies and Pension Funds

In four quarters of 2005 gross premiums written stood at CZK 117,1 billion, accounting for 30,3 % of total revenues and rising by 4,1 % year-on-year. Insurance claims paid amounted to CZK 54,3 billion, making up 14,5 % of total expenses of the insurance companies. Costs of these insurance claims fell by 7,7 % year-on-year. Over the period of January to the end of December, total technical provisions for life insurance increased by CZK 19,6 billion to CZK 162,9 billion.

In the period from the beginning of 2005 till the end of December all of the 43 insurance companies employed a total of 14 423 employees (actual persons) on average, i.e., by 3,8 % less than in the corresponding period of 2004. In terms of full-time equivalent (fte) persons, the average registered number of employees was 14 281; the employment thus decreased by 4,1 % as well. The average monthly wage (related to the fte persons) was 32 385 CZK, increasing by 5,6 % on all four quarters of 2005.

During four quarters of 2005 there were concluded 4 691 767 non-life insurance contracts, by 5,2 % more than in the same period of the previous year. The number of life insurance contracts concluded during the observed period of 2005 is 825 875, which translates into a decrease of 26,5%.

In four quarters of 2005 pension funds (CZ-NACE 66.02) made their profits amounting to CZK 4,6 billion (an increase of 43,3 % year-on-year). Total expenses of 11 active pension funds during the period from January to the end of December reached CZK 3,9 billion, rising by 37,4 % year-on-year. Total revenues increased by 40,5 % year-on-year to CZK 8,5 billion. Financial expenses were 46,6 % of total expenses and financial revenues accounted for 98,5 % of total revenues.

Four quarters of 2005 saw total technical provisions of pension funds growing by CZK 18,5 billion to CZK 112,8 billion. Contributions received from members and employers (excluding government contributions) stood at CZK 23,2 billion, increasing by 19,7 % year-on-year. Government contributions increased by 14,3 % in the observed period of 2005 and amounted to CZK 3,7 billion. Supplementary pension insurance benefits paid stood at CZK 9,5 billion, which is a year-on-year growth of 27,6 %.

There were 3 293 907 active supplementary pension insurance policy holders (members of pension schemes) in total on 31st December 2005. The number increased by 338 204 persons (11,4 %) since the beginning of the year. Of the total, 3 239 560 persons received government contributions. The number of pension recipients dropped by 2 361 to 4 714 persons since the beginning of 2005.

All of the pension funds employed a total of 468 actual persons on average in all quarters of 2005, by 1,6 % less than in the same period of 2004. This employment in terms of full-time equivalent stood at 450 persons and fell by 3,4 % year-on-year. The average monthly wage related to fte persons was up by 6,2 % year-on-year and amounted to 39 416 CZK.