The Irish Financial Regulator today published the Insurance Statistical Review for 2008. This publication gives detailed statistics and market data on the Insurance Industry in Ireland. The information is primarily sourced from the regulatory returns provided by insurance companies to the Financial Regulator. The report says underwriting profits dropped 83% and premium income, which measures the total value of the industry, fell 22% to €35.9 billion last year.

The Regulator says this year marks the first time that the  Insurance Statistical Review is produced in electronic format only.

Overview of the Volume of Business Written

Total Gross Premium income received by Head Offices and Branches in Ireland amounted to €35.90 billion in 2008 compared to €46.15 billion in 2007. In 2008, €28.50 billion of the total was generated by Life companies and €7.40 billion by Non-Life companies.

Life Assurance

Gross Premium written in Ireland by Life Assurance companies decreased by 26% to €28.50 billion from €38.59 billion in 2007. It comprised of €12.46 billion in Irish Risk business (€18.13 billion in 2007) and €16.04 billion in Foreign Risk business (€20.46 billion in 2007). The breakdown shows that Irish Risk business decreased by 31% and Foreign Risk business decreased by 22%.

Total Net Premium Income in respect of Irish Risk business amounted to €11.32 billion compared to €16.59 billion in 2007, a decrease of 32%. Total Foreign Risk Net Premium Income amounted to €14.95 billion compared to €19.42 billion in 2007, a decrease of 23%.

Non-Life Insurance

Gross Premium written in 2008 amounted to €7.40 billion (€7.56 in 2007). This comprises €3.86 billion Irish Risk business (€4.02 billion in 2007) and €3.54 billion Foreign Risk business written from Ireland (€3.54 billion in 2007). Therefore, Irish Risk premium written decreased by 4% on 2007 and Foreign Risk premium remained unchanged.

Net Premium Income in 2008 was €5.60 billion comprising €3.33 billion (€3.46 billion in 2007) for Irish Risk and €2.27 billion (€2.16 billion in 2007) for Foreign Risk business. Overall the total remained almost unchanged from 2007, whilst the breakdown shows that Irish Risk business decreased by 4% and Foreign Risk business increased by 5%.

Underwriting Result - Irish Market

In respect of Irish Risk business, the 2008 result showed a Net Underwriting Profit of €121.9 million, compared to a profit of €704.1 million in 2007. Of this, Irish authorised companies achieved an underwriting profit of €101.5 million while branches of companies authorised in other jurisdictions made a profit of €20.4 million. In 2008, the total income from investments attributable to the Underwriting Revenue Account was €95.5 million compared to €369.1 million in 2007.

Underwriting Result – Foreign Risk Market

There was a Net Underwriting Profit recorded in respect of Foreign Risk business written from Ireland of €126.2 million compared to a profit of €348 million in 2007. Of this, Irish authorised companies achieved an underwriting profit of €142.4 million while branches of companies authorised in other jurisdictions made a loss of €16.2 million. In 2008, the total income from investments attributable to the Underwriting Revenue Account was €86.7 million compared to €176.3 million in 2007.

In addition, business written outside of Ireland by branches of Irish authorised insurers located abroad showed a Net Underwriting Profit of €16.8 million compared to €94.6 million in 2007. In 2008, the total income from investments attributable to the Underwriting Revenue Account was €37.2 million compared to €60.1 million in 2007.

Breakdown by Class of Insurance

The breakdown of the Gross Written Premium related to Irish Risk written in Ireland between the various classes of insurance reveals that in 2008 Motor Insurance represented 37.62% of the market compared to 38.97% in 2007; Fire and Damage to Property represented 25.20% compared to 25.7% in 2007; Liability represented 18.38% compared to 19.68% in 2007; whilst Accident & Health business represented 15.20% compared to 11.42% in 2007.

The breakdown of the Gross Written Premium related to Foreign Risk business written in Ireland between the various classes of insurance shows that in 2008, Motor Insurance represented 17.11% of the market, down from 18.61% in 2007; Fire and Damage to Property represented 22.99% compared to 24.47% in 2007; Liability represented 18.71% compared to 20.19% in 2007; whilst Accident & Health business represented 19.56% compared to 17.48% in 2007.