Insurance premiums grow 335% in four years
Between 2004 and 2007, premiums for general insurance business grew from €116.8 million to €508.8 million (or 335 per cent in four years) while the life insurance sector practically doubled to €265.1 million, according to the Malta Financial Services...
Between 2004 and 2007, premiums for general insurance business grew from €116.8 million to €508.8 million (or 335 per cent in four years) while the life insurance sector practically doubled to €265.1 million, according to the Malta Financial Services 2008 Annual Report.
The report points out that at the end of 2007, the overseas insurance market accounted for 60 per cent of total gross premiums written in the general and life business sectors.
Audited figures with respect to the volume and segmentation of business for 2008 have to be submitted to the MFSA by June 30 and the figures available were those received for 2007. The trends, however, continue to confirm the extent of business growth that is taking place, the report states.
Between 2004 and 2008 the insurance sector grew from 12 domestic insurance companies servicing the local market to 41 insurance companies providing insurance services across 27 EU countries and beyond.
In 2008 the number of newly licensed (re)insurance companies amounted to 11. Protected Cell Company services also took off in 2008, with three PCCs operating 10 cells by the end of the year.
Figures for 2007 published by the MFSA in the course of the year showed an overall expansion in insurance business of 41 per cent over 2006. Total gross premiums written in 2007 amounted to €764 million, a €223 million increase over the previous year. The gross technical provisions at the end of 2007 for non-life insurance stood at €471.6 million while those for the life insurance sector stood at €1,136 million.
In the general business sector the insurance of risks based outside Malta accounted for gross premiums written of €418.7
million and an increase of €159.4 million over 2006. In contrast the local non-life business sector remained static, expanding by only €1 million to €90.1 million.
At the end of 2007 the reinsurance share of the business stood at €172 million or 44.6 per cent, with the remainder being retained by licence holders. The highest incidence of reinsurance is in the General Liability Class, standing at 57.9 per cent. The largest class of business in the non-life sector was the fire and other property damage class, followed by general liability and motor insurance.
2007 also showed a significant increase in life insurance business written in Malta which went up by €82 million to €228 million. This translates to an increase of 56 per cent over one year, compared to modest increases registered in previous years. The figures for life insurance risks based outside Malta decreased by €10 million to €37.1 million.
Over €172 million were derived from single premium policies, while €97 million came from regular premiums. Reinsurance ceded was €6.3 million. Gross claims paid in the general business sector amounted to €283.9 million. Over 86 per cent of these claims related to risks situated outside Malta. The reinsurers share was of €82.4 million or 29 per cent of the total.
The highest amount of claims paid was in the fire and other damage to property class which accounted for €219.4 million. Of these only €7.8 million were due in respect of risks situated in Malta. The second largest amount of claims paid was in the motor insurance class, where a total of €31 million was paid, €26.2 million of which was in respect of risks situated in Malta.
The total cost of claims incurred during 2007, excluding claims management costs, were €218.8 million. Claims management costs amounted to €8.7 million.
Total long term business claims in 2007 amounted to €63.9 million. Of these, reinsurance ceded amounted to €2.4 million. In relation to the greater part of these claims, €54.4 milllion, Malta was the country of commitment.
The report points out that at the end of 2007, the overseas insurance market accounted for 60 per cent of total gross premiums written in the general and life business sectors.
Audited figures with respect to the volume and segmentation of business for 2008 have to be submitted to the MFSA by June 30 and the figures available were those received for 2007. The trends, however, continue to confirm the extent of business growth that is taking place, the report states.
Between 2004 and 2008 the insurance sector grew from 12 domestic insurance companies servicing the local market to 41 insurance companies providing insurance services across 27 EU countries and beyond.
In 2008 the number of newly licensed (re)insurance companies amounted to 11. Protected Cell Company services also took off in 2008, with three PCCs operating 10 cells by the end of the year.
Figures for 2007 published by the MFSA in the course of the year showed an overall expansion in insurance business of 41 per cent over 2006. Total gross premiums written in 2007 amounted to €764 million, a €223 million increase over the previous year. The gross technical provisions at the end of 2007 for non-life insurance stood at €471.6 million while those for the life insurance sector stood at €1,136 million.
In the general business sector the insurance of risks based outside Malta accounted for gross premiums written of €418.7
million and an increase of €159.4 million over 2006. In contrast the local non-life business sector remained static, expanding by only €1 million to €90.1 million.
At the end of 2007 the reinsurance share of the business stood at €172 million or 44.6 per cent, with the remainder being retained by licence holders. The highest incidence of reinsurance is in the General Liability Class, standing at 57.9 per cent. The largest class of business in the non-life sector was the fire and other property damage class, followed by general liability and motor insurance.
2007 also showed a significant increase in life insurance business written in Malta which went up by €82 million to €228 million. This translates to an increase of 56 per cent over one year, compared to modest increases registered in previous years. The figures for life insurance risks based outside Malta decreased by €10 million to €37.1 million.
Over €172 million were derived from single premium policies, while €97 million came from regular premiums. Reinsurance ceded was €6.3 million. Gross claims paid in the general business sector amounted to €283.9 million. Over 86 per cent of these claims related to risks situated outside Malta. The reinsurers share was of €82.4 million or 29 per cent of the total.
The highest amount of claims paid was in the fire and other damage to property class which accounted for €219.4 million. Of these only €7.8 million were due in respect of risks situated in Malta. The second largest amount of claims paid was in the motor insurance class, where a total of €31 million was paid, €26.2 million of which was in respect of risks situated in Malta.
The total cost of claims incurred during 2007, excluding claims management costs, were €218.8 million. Claims management costs amounted to €8.7 million.
Total long term business claims in 2007 amounted to €63.9 million. Of these, reinsurance ceded amounted to €2.4 million. In relation to the greater part of these claims, €54.4 milllion, Malta was the country of commitment.