1999 Insurance Annual Report Published

Mr. Noel Treacy, T.D., Minister for Science, Technology and Commerce, today (Monday 18th December, 2000) announced the publication of the Insurance Annual Report - "The Blue Book" - for 1999.

The principal features of the Report are as follows:-

Volume of Business Total gross premium income received by head offices and branches in Ireland amounted to IR£10.59 billion in 1999, a 41% increase on 1998. Of the total, IR£7.40 billion (70%) was generated by life companies and IR£3.19 billion (30%) by non-life companies. Business written on a freedom of services basis into other EEA Member States accounted for IR£3.32 billion (31%) of the overall business written.

Non-Life Underwriting Results

• Total Irish risk net premium income increased by 11% to IR£1.62 billion while the cost of claims incurred increased by over 8% to IR£1.41 billion.
• Total Irish risk underwriting losses decreased from IR£210 million (14% of net premium) in 1998 to IR£201 million (12%) in 1999. Allowing for investment income, however, there was a technical profit of IR£20 million, up from IR£11 million in 1998.
• In Motor insurance, underwriting losses increased from IR£99 million (12% of net premium) in 1998 to IR£126 million (14%) in 1999. Taking into account investment income earned on reserves in this class there was a technical loss of IR£16 million, compared to a IR£16 million profit in 1998.
• Underwriting losses on Liability insurance decreased from IR£81 million (34% of net premium) in 1998 to IR£76 million (30%) in 1999.
• In Fire and Property insurance, underwriting losses decreased from IR£37 million (12% of net premium) in 1998 to IR£14 million (4%) in 1999.

Life Assurance Results Total new premiums written in Ireland showed an increase of 63% over 1998 rising from IR£3.63 billion to IR£5.90 billion, of which IR£3.31 billion related to Irish risk business compared with IR£2.23 billion in 1998. New single premium business written in Ireland increased by 70%, while new annual premium business increased by 9% in the same period.

Total gross premium income in 1999 increased by 49% from IR£4.96 billion to IR£7.4 billion. Of this, income in respect of Irish risk business amounted to IR£4.83 billion (IR£3.57 billion in 1998).

Minister Treacy said "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."

The 1999 Insurance Annual Report is available from the Government Publications Sales Office, Molesworth Street, Dublin 2 (Price IR£7.00). It will be available shortly on the Department’s website (www.djei.ie).