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Financial & Insurance Activities Sector

Financial & Insurance Activities Sector

Turnover in Bank and Insurance exceeded €69 billion in 2020

Online ISSN: 2009-6895
CSO statistical publication, , 11am

Statistics on the Financial & Insurance Activities sector (NACE K) are presented in this chapter. The statistics were not collected via the Structural Business Surveys mentioned throughout this publication but were collected and analysed by the CSO's Balance of Payments Division who engage directly with the Financial & Insurance Activities sector and its regulators on the provision of these statistics. 

The Financial & Insurance Activities sector has traditionally used different terms to describe variables like production value, gross value added, and operating surplus. As part of a broad legislative proposal, agreed EU definitions for the Financial & Insurance Activities sector are currently being developed and should be in use in the coming years. The objective behind producing these statistics is to complete the coverage of the Business Economy in Ireland and to allow meaningful comparisons with other business sectors such as Industry and Services.

The Financial & Insurance Activities sector is described by NACE Section K. It includes:

K64 - Financial Services Activities, except Insurance and Pension Funding is dominated by credit institutions which in Ireland are banks and credit unions. However, it also includes activities of holding companies, obtaining and redistributing funds other than for the purpose of insurance, pension funding, or compulsory social security among other financial services activities.

K65 - Insurance, Reinsurance and Pension Funding includes life insurance companies, non-life insurance companies, and reinsurance companies, as well as pension funds. This group includes underwriting annuities, insurance policies, and investing premiums to increase the portfolio of financial assets.

K66 - Activities Auxiliary to Financial Services and Insurance Activities is the most diverse category and includes all financial auxiliaries including brokerage firms, insurance agents, and fund management activities. These services are closely related to financial service activities but are not themselves providing financial services.

The business operations data presented for the Financial & Insurance Activities sector in this report covers banks, life insurance, non-life insurance, and reinsurance. The detailed calculations of the main indicators for these enterprises are presented here. The calculations are based on the accounting framework where the income and expenses for the reference year 2020 are analysed in detail. See Tables 8.1 and 8.2.

Interest Receivable and Payable by Banks

  • Interest received increased by 19.4% in 2019 compared with 2018, whereas it decreased by 17.3% in 2020
  • Interest payable and similar charges increased by 44.5% over the period 2018-2019, but decreased by 37.7% between 2019 and 2020
  • Net interest income from securities decreased by 45.7% over the period 2018 to 2020, while net interest received from loans and deposits increased by 6.2% over the same period
  • All income increased by 14.2% between 2018 and 2019 but decreased by 12.3% between 2019 and 2020, making all income in 2020 to be almost identical to that in 2018
Interest payable
linked to securities
Interest payable
linked to loans and deposits
Interest receivable
from securities
Interest receivable
from loans and deposits

Value of Production for Banks

  • Profit linked to loans and deposits decreased by 2.9% in 2020. Annual decreases were also recorded in production value (-1.7%) and other income (-1.1%) in 2020
  • Profit linked to securities rose from €285m in 2019 to €327m in 2020, an increase of 14.7%
X-axis labelProfit linked to loans and depositsProfit linked to securitiesOther incomeValue of production

Gross Premiums Earned and Gross Claims Incurred by Insurance Companies

  • Gross premiums earned by insurance companies increased by 4.2% between 2019 and 2020, while gross claims incurred increased by 6.0% in the same period
  • Fees receivable increased by 11.8% over the period 2018-2019 and decreased by 0.2% between 2019 and 2020
  • Investment income on insurance reserves (Technical a/c) decreased by 4.0% between 2018 and 2020
  • Production for all insurance companies amounted to almost €10.8bn in 2020, a decrease of 40.3% on the previous year
  • Gross operating surplus for insurance companies in 2020 had a negative value of -€3.37bn, compared with a surplus of €3.38bn in 2019
X-axis labelGross premiums earnedGross claims incurred
8.1 Production account and generation of income for all banks, 2018 - 2020

8.2 Production account and generation of income for all insurance companies, 2018 - 2020

8.3 Summary of main indicators for banks and insurance, 2020