1998 Insurance Annual Report Published

Mr. Noel Treacy, T.D., Minister for Science, Technology and Commerce, today (Friday 17th December, 1999) announced the publication of the Insurance Annual Report - "The Blue Book" - for 1998.

The principal features of the Report are as follows:-

• Non-Life Underwriting Results
• Total Irish risk net premium income increased by 12% to £1.46 billion while the cost of claims incurred increased by over 11% to £1.30 billion.
• In Motor insurance, underwriting losses decreased from £114 million (16% of net premium) in 1997 to £99 million (12%) in 1998. Taking into account investment income earned on reserves in this class, however, there was technical profit of £16 million, compared to £31 million in 1997.
• Underwriting losses on Liability insurance increased slightly from £80 million (34% of net premium) to £81 million (34%).
• In Fire and Property insurance, underwriting losses increased from £1.6 million in 1997 to £37.3 million in 1998. The increased losses were partly due to the severe storm and flood damage to property in 1998.
• Total Irish risk underwriting losses increased from £184 million (14% of net premium) in 1997 to £210 million (14%) in 1998. Allowing for investment income, however, there was a technical profit of £11 million, down from £74 million in 1997.

Total gross premium income in 1998 increased by 51% from £3.29 billion to £4.96 billion. Of this, income in respect of Irish risk business amounted to £3.57 billion (£2.60 billion in 1997).

Minister Treacy said that Dublin is now firmly established as one of the top ten domiciles in the world for captive insurance companies. Major corporations with captives in Dublin include BMW, Ericsson, Coca Cola, McDonald's, Seagrams, Volvo, IBM, H.J. Heinz and others.