This is an archived release.
Continued decline in operating profits
Operating profits for insurance brokers declined for the third year in a row. Compared with 2003 the operating income decreased while the operating expenses increased. This development resulted in an overall decline in operating profits from NOK 71 million to NOK 51 million. However, reduced net financial costs and reduced taxes led to a small improvement of the overall profit.
The commission and fee income declined by NOK 14 million, 1.4 per cent. The composition of commissions and fees are changed from 2003 due to changes in the insurance industry standard. From 1 September the non-life insurance companies are no longer paying commission to the brokers. Instead the customers have to pay for the services.
Personnel costs increased by NOK 16 million, 2.9 per cent. Write-offs and other expenses were reduced by NOK 10 million, 2.8per cent.
97.8 per cent of the operating income came from commissions and fees, the same as in 2003. All together the operating profit was NOK 981 million, a reduction from 2003 by 1.3 per cent. Operating costs were 929 million NOK in 2004, of which personnel costs constituted 62.1 per cent.
Insurance brokers are intermediary of insurance and information between customers and insurance companies. The statistics includes all insurance brokers that report to and are registered by "The Financial and Supervisory Authority of Norway".