This is an archived release.
Negative result for insurance brokers
Norwegian insurance brokers experienced a deficit and reduced equity in 2003. Falling operating revenue and net investment income are the main reasons for the negative result.
Insurance brokers act as intermediaries between insurance companies and customers. The statistics includes insurance brokers registered by Kredittilsynet, the financial supervisory authority of Norway.
Commission income decreased by NOK 88 million (9.5 per cent), and ended at NOK 834 million. The decrease is a result of changes in insurance industry standards, as non-life insurance companies no longer pay commission to brokers. These services are now paid by the customers.
Operating profit was NOK 71 million in 2003, down from NOK 85 million in the previous year. Reduced operating revenue is the main reason for the reduced profit. At the same time, income from investment fell and the investment charges rose. This resulted in a 62.8 per cent drop in profit on ordinary activities (NOK 76 million). Profit on ordinary activities was NOK 45 million.