Increased profit for insurance brokers in 2005
In 2005, overall profit for insurance brokers was NOK 66 million, an increase from NOK 8 million in 2004. Operating profit increased from NOK 51 million to NOK 89 million, while net financial income went up from NOK -17 million to NOK 6 million.
The commission and fee income declined by NOK 18 million (2 per cent), while other operating income increased by NOK 32 million (152 per cent). The composition of commissions and fees has changed from 2003 due to changes in the business standard of the insurance industry. 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 rose by NOK 5 million (1 per cent), while write-offs and other expenses were reduced by NOK 29 million (8 per cent).
Operating income and costs
95 per cent of the operating income came from commissions and fees, while this was 98 per cent in 2004. All together the operating income was NOK 994 million, an increase of 1 per cent from 2004. Operating costs were NOK 905 million in 2005, of which personnel costs represented 64 per cent. In 2004 personnel costs represented 62 per cent.
Insurance brokers are intermediaries of insurance contracts between customers and insurance companies. The statistics includes all insurance brokers that are registered with and reports toThe Financial and Supervisory Authority of Norway.