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Published:
This is an archived release.
Financial crisis affects insurance companies
Non-life and life insurance companies had a marked weaker result in the fourth quarter of 2008, compared with the corresponding quarter of 2007. The main reason for this was the poor profits in the market for securities.
The value-adjusted profit for life insurance companies achieved a preliminary deficit of NOK 19.3 billion; a decrease of NOK 34.2 billion compared with the fourth quarter of 2007. This was mainly due to a decrease in the market for securities.
4th quarter 2008 | 4th quarter 2007 | ||||||||||||||||||||||||||||||||||||||
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Earned premiums, exclusive of transfers to other companies | 79 782 | 79 105 | |||||||||||||||||||||||||||||||||||||
Claims incurred | 65 640 | 70 193 | |||||||||||||||||||||||||||||||||||||
Profit/loss before tax and allocation to customers | -548 | 18 763 | |||||||||||||||||||||||||||||||||||||
Net income from financial assets | -23 122 | 48 053 | |||||||||||||||||||||||||||||||||||||
Value-adjusted profit/loss | -19 291 | 14 934 | |||||||||||||||||||||||||||||||||||||
Total assets decreased by NOK 2.4 billion from the previous quarter last year. This corresponds to a decline of 0.3 per cent. Investments in subsidiaries and other shares, participation and primary capital certificates made up 31.4 per cent of total assets; a decrease of 12 per cent compared to the corresponding quarter last year. Bonds made up 47 per cent; an increase of 8 per cent.
4th quarter 2008 | 4th quarter 2007 | ||||||||||||||||||||||||||||||||||||||
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Total assets | 734 290 | 722 692 | |||||||||||||||||||||||||||||||||||||
Investments in subsidiaries and other shares, participation and primary capital certificates |
264 593 | 291 158 | |||||||||||||||||||||||||||||||||||||
Holdings of bonds | 322 374 | 298 787 | |||||||||||||||||||||||||||||||||||||
Holdings of certificates | 24 621 | 16 146 | |||||||||||||||||||||||||||||||||||||
The non-life insurance industry achieved a preliminary profit of NOK 905 million in the fourth quarter of 2008. This is a decrease of NOK 2.7 billion compared with the fourth quarter of 2007. The technical account improved by NOK 4.1 billion compared with the fourth quarter of 2007.
4th quarter 2008 | 4th quarter 2007 | ||||||||||||||||||||||||||||||||||||||
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Earned premiums | 47 860 | 41 882 | |||||||||||||||||||||||||||||||||||||
Claims incurred | 34 077 | 30 014 | |||||||||||||||||||||||||||||||||||||
Profit/loss of ordinary activities | 905 | 3 606 | |||||||||||||||||||||||||||||||||||||
Net income from financial assets | -1 555 | 5 057 | |||||||||||||||||||||||||||||||||||||
Profit/loss of the technical account | 7 151 | 3 097 | |||||||||||||||||||||||||||||||||||||
Total assets in the non-life insurance industry increased by NOK 5.7 billion from the fourth quarter of 2007 to the same period in 2008, which gives a growth of 3.4 per cent. Bonds made up 29 per cent of total assets, while investments in subsidiaries and other shares, participation and primary capital certificates made up 20 per cent.
4th quarter 2008 | 4th quarter 2007 | ||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total assets | 171 858 | 166 156 | |||||||||||||||||||||||||||||||||||||
Investments in subsidiaries and other shares, participation and primary capital certificates |
33 760 | 42 995 | |||||||||||||||||||||||||||||||||||||
Holdings of bonds | 49 645 | 43 317 | |||||||||||||||||||||||||||||||||||||
Holdings of certificates | 15 681 | 8 710 | |||||||||||||||||||||||||||||||||||||
From January 2008, new annual account regulations for insurance companies adapted to the new International Financial Reporting Standards (IFRS) were introduced. New regulations for life insurance were introduced at the same time. Both changes have had an impact on the content and presentation of the insurance statistics, and cannot be compared with those from previous quarters. |
Tables
Contact
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Kjell Hammer
E-mail: kjell.hammer@ssb.no
tel.: (+47) 40 90 26 76
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Ola Tveita
E-mail: ola.tveita@ssb.no
tel.: (+47) 99 73 45 83