Insurance industry’s profits fell by 20% in 2016

Insurance industry’s earnings declined sharply in 2016. According to data from the Financial Supervisory Authority, insurance companies’ profit fell to ALL 493 million, about 20% less compared to 2015.

The decline in profits came especially from the life insurance market, with the financial result of the companies shrinking to ALL 77 million, while the previous year was three times higher.

Meanwhile, in non-life insurances, profits increased by approximately 10%, to a net amount of ALL 416 million.

The increase in non-life earnings was mainly due to the significant increase in the technical result, which means profits from the insurance activity, excluding the balance of income and financial expenses or other items.

In essence, insurers have earned more from the received premiums.

As is the case last years, even in 2016 statistics confirm that insurers spent more on their operational and administrative needs than damages.

For the past year, the damage / prime ratio was less than 30%, while the cost / prime ratio was approximately 67%.

Out of eight non-life insurance companies, five of them closed 2016 with profit.

The company that secured the highest profits for the last year was Sigal, with ALL 366 million, followed by Albsig, Insig, Intersig and Atlantic.

Ansig, Eurosig and Sigma Interalbanian closed 2016 with losses.

Even in the life market, Sigal Life has secured the largest profits, with ALL 125 million.

Insig Life has also registered a modest profit, while SiCRED has closed 2016 with loss.

SCAN

*Material i përgatitur nga portali SCAN. Ripublikimi mund të bëhet vetëm kundrejt citimit të autorësisë dhe burimit origjinal.