Profits of the insurers have fallen more than 40% in first half – Business Journal – Portugal

Profits of the insurers have fallen more than 40% in first half – Business Journal – Portugal

Despite the drop in profits, production insurance increased by 18.5% in the first half of this year compared to 2013, totaling 6.6 billion. The Retirement Savings Plans (PPR) rose by 67% during this period.

Corporate profits insurers fell 42% in the first half of this year over the same period. The net result of the industry came down from 440 million euros to 257 million.

The data was released this Monday, August 18, at the Insurance Institute of Portugal (ISP) and show that This decline took place after the profits have increased 177% in the first half of last year compared to the same period.

It is noteworthy, however, that the 42 insurance companies under the supervision of ISP, 34 showed profits during the first half of this year.

Regarding the coverage rate of the solvency margin of insurance companies, this “remains at a comfortable level,” says the ISP. The financial capacity of these companies to meet their commitments reached approximately 229% in the first six months. In Life, the coverage rate was 233%, the rate increased to 290% in non-life.

Despite the drop in profits, production insurance increased by 18.5 % in the first half, amounting to EUR 6.6 billion.

This increase was decisive production insurance Life segment, which rose by 26.9% compared to 2013 This was the second consecutive increase in the first half, after last year’s Life business has grown 49% over the period to 3900 million.

is also underline the positive evolution of the Retirement Savings (PPR), which rose 67% compared to 2013 This type of product weighed nearly a quarter in the structure of the Life segment, accounting for 22.5% of total production in the first six months of 2014.

Featured for the increased weight of PPR in the same period over the past three years. In 2011, PPR weighed 14% in Life, with this weight increase to the current 22.5%.

It claims costs decreased by 1% to € 4115 million YoY . This is due to the fall of redemptions, which fell by 7.8% in the first half. Still lower than those achieved in previous years, such as the reduction of 40.7% in 2013 and 35.2% decline in 2012.

On the contrary, the Non-Life recorded a decline 0.8% to EUR 1.6 billion. Here, there were decreases in the production of insurance Automobile, Transport and Goods transposed and almost all forms of branch Fire and other damage.

sinistos costs fell by 5.1% during the first half, thus resuming the trend of previous years to 2013.

The decline is mainly due to the behavior of the branch Fire and other damage, with a decrease of 32% due to the reduction of the amounts paid and release of provision for sinistos, amounting to more than EUR 12 million.