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Statement on Insurance Ireland’s 2017 Factfile: From 2013-2017 Irish insurers made underwriting losses of €1.1 billion in motor and business insurance

 

  • Irish general insurers had underwriting losses in motor of €757 million and €349 million in business insurance from 2013-2017
  • The business markets were still loss making in 2017 with underwiring losses of €47 million
  • In 2017, insurers made €3.50 on every €100 of motor insurance premium
  • In 2017, at a Non-Life market level, insurers made €4 for every €100 of premium income
  • In 2017, in business insurance, insurers paid out €112 for every €100 of premium income
  • In 2016, the return on premium for the Non-Life sector - before tax - was €15.8 million in a market of €3.25 billion, which is a 0.49% return, while in 2017 the return was €227 million, 6.5% in a market of €3.51 billion

                                                             

Kevin Thompson, CEO of Insurance Ireland said, “Insurance Ireland publishes its Factfile every year to provide insight into the market. Our 2017 Factfile shows the recovery in the Non-Life insurance market has not been uniform with business insurance underwriting losses of €47 million in 2017. In the five years to 2017, total underwriting losses in business insurance were €349 million and in motor insurance they were €757 million. Motor insurance returned to underwriting profitability in 2017 to bring the Non-Life market to an overall underwriting profit of €126.5 million for the year, with a further €101 million in investment income. This represents a 6.5% return in a market of €3.51 billion, up from a return of 0.5% in 2016. Insurers must maintain underwriting discipline in what is still a volatile market as key claims reforms have not been delivered and this must be addressed as a matter of urgency. Like all businesses, insurers want stability and claims cost reform is the means to deliver this for policyholders.”

 

Notes:

Business insurance is Employers’ Liability (EL) and Public Liability (PL).

The reference to €3.50 profit on every €100 of motor insurance premium relates to the Combined Operating Ratio for motor of 96.5%.

The reference to €4 profit on every €100 of premium relates to the Combined Operating Ratio for the Non-Life market of 95.9%.

The reference to €112 paid out on every €100 of business insurance premium relates to the Combined Operating Ratio for the liability markets (EL & PL) of 111.8%.

 

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