Non-life insurance companies had a decrease in total profit of a total of 12.3 per cent compared to the second quarter last year. One of the main reasons is realised losses on financial assets.
Life insurance companies had a profit of NOK 3.5 billion after the first half year of 2016. This is a decrease of 7.9 per cent compared with the same period in the previous year. Compared with the second quarter of 2015, the profit on ordinary activities decreased by 13.9 per cent in the same period in 2016.
Increase in shares in securities funds for life insurance
Life insurance companies’ total assets increased by 6.4 per cent compared to the corresponding quarter last year. Bonds and certificates made up 37.6 per cent of total assets. Shares in mutual funds increased by 6.5 per cent. As a proportion of total assets, mutual funds accounted for 35.6 per cent.
Increase in technical account for non-life insurance
The balance of the technical account increased by a total of 52.3 per cent, and amounted to NOK 5.0 billion at the end of the second quarter of 2016. The profit of ordinary activities amounted to NOK 7.1 billion; an increase of 5.5 per cent. Non-life insurance companies’ earned premiums written increased by 1.8 per cent. Gross claim payment decreased by 2.2 per cent.
Increase in bonds and certificates
The non-life insurance companies’ assets increased by 4.6 per cent in second quarter of 2016 compared to the corresponding quarter in 2015. The holdings of shares in security funds decreased by 4.2 per cent compared to the second quarter last year. As a share of total assets, this amounts to 12.7 per cent, which is a decrease of 1.2 percentage points compared to the previous year. Bonds and certificates as a share of total assets amounted to 39.7 per cent; an increase of 1.0 percentage point from the previous year.
Source: SSB / Norway Today