Insurance industry profits top €1 billion - regulator

The insurance industry pulled in €26

The insurance industry pulled in €26.7 billion in premiums in 2004, a 22 per cent increase on last year, according to figures released by the Financial Regulator today.

The Regulator revealed that of the total revenue raised, €19.35 billion, or 72.5 per cent, was generated by life companies and €7.34 billion, 27.5 per cent, by non-life companies.

Irish non-life insurers' profits from underwriting policies rose 65 per cent to €689 million in 2004 and investment returns added a further €375 million to earnings, according to the Regulator.

The figures are contained in the regulator's annual statistical report on the insurance industry. Motor insurers profits rose 55 per cent per cent on 2003.

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Motor premiums accounted for 40 per cent of the market compared to 43.47 per cent in 2003.

The Progressive Democrats transport spokesman John Minihan said the figures show the Irish motorist has saved €700 million over the last two years because of reforms introduced by his party in Government.

"The Personal Injuries Assessment Board (PIAB) is proving hugely successful, and the 'compo culture' which pushed up prices for all consumers, has been tackled," he said.

The PIAB's first annual report released on Tuesday said it expected that more than €60 million will be saved in litigation costs on the first 15,000 claims processed by the board.

Public liability dropped slightly to 21.1 per cent from 22.06 per cent and fire and damage represented 26.18 per cent compared to 26.57 per cent in 2003.

In addition, international business by Irish insurers within the EU shows that underwriting profit doubled to €96 million.

The foreign risk business underwritten from Ireland largely in the IFSC earned an underwriting profit of €414 million, according to the survey.