This chapter looks at the trends in the Insurance Corporations sector (S.128), which includes life, non-life and reinsurance activity. This sector consists of all financial corporations and quasi-corporations which are principally engaged in financial intermediation as a consequence of the pooling of risks mainly in the form of direct insurance or reinsurance.
| (AF.2) Currency and Deposits | (AF.3) Debt Securities | (AF.4) Loans | (AF.5) Equity and Investment Fund Shares/Units | (AF.6) Insurance, Pensions and Standardised Guarantee Schemes | (AF.7) Financial Derivatives and Employee Stock Options | (AF.8) Other Accounts Receivable | Total | |
| 2012 | 7.682671702 | 29.506191269 | 3.674577984 | 110.196454948 | 28.352334966 | 2.234791903 | 15.461649443 | 197.108672215 |
| 2013 | 20.051257278 | 63.737949531 | 1.97396805 | 124.732142626 | 26.698126357 | 1.61859869 | 15.400102187 | 254.212144719 |
| 2014 | 19.379156638 | 70.452679906 | 2.008147148 | 147.843769556 | 31.990929033 | 2.315997503 | 17.000745335 | 290.991425119 |
| 2015 | 21.645610794 | 73.589898113 | 2.167612932 | 163.781459104 | 36.312519021 | 1.648726952 | 21.322492919 | 320.468319835 |
| 2016 | 21.384575336 | 71.720778663 | 3.369978938 | 177.117975692 | 35.324523628 | 1.669487419 | 21.996519769 | 332.583839445 |
Get the data: StatBank
The size of the balance sheet assets of the Insurance Corporations sector increased by €135bn between 2012 and 2016. This was mainly drive by an increase in Equity (AF.5). The share of Loans (AF.4) decreased after 2012 from €3.7bn to €2bn in 2013, increasing to €3.4bn in 2016. The size of the balance sheet increased by €36.8bn in 2014, mainly due to an increase in Equity (AF.5). Together Debt Securities (AF.3) and Equity (AF.5) comprise 75% of the total balance sheet in 2016.
| (AF.4) Loans | (AF.5) Equity and Investment Fund Shares/Units | (AF.6) Insurance, Pensions and Standardised Guarantee Schemes | (AF.7) Financial Derivatives and Employee Stock Options | (AF.8) Other Accounts Receivable | Total | |
| 2012 | 4.156360982 | 28.100268496 | 206.737798196 | 0.29315312 | 14.21869126 | 253.506272054 |
| 2013 | 3.505970667 | 25.4659239 | 212.162375226 | 0.304927355 | 15.45817392 | 256.897371068 |
| 2014 | 3.819802856 | 27.927810767 | 246.517968104 | 0.128820017 | 16.122261743 | 294.516663487 |
| 2015 | 4.086419985 | 31.169076594 | 270.003982895 | 0.16445753 | 19.337434802 | 324.761371806 |
| 2016 | 4.096789789 | 33.57599355 | 279.258055766 | 0.70609399 | 19.195325967 | 336.832259062 |
Get the data: StatBank
Insurance and Standardised Guarantee Schemes (AF.6) account for 83% of the total liabilities in 2016. The size of total liabilities has increased by €83bn between 2012 and 2016. Most of this increase can be attributed to increase in Insurance (AF.6) and Equity (AF.5) which increased by €72.5bn and €5.5bn respectively.
| Total Assets (Rest of the World) | Total Assets (Ireland) | |
| 2012 | 192.366626982 | 54.314359688 |
| 2013 | 205.95855345 | 48.25359127 |
| 2014 | 240.012752534 | 50.978672587 |
| 2015 | 268.523699236 | 51.944620598 |
| 2016 | 279.752020644 | 52.831818802 |
| Total Liabilities (Rest of the World) | Total Liabilities (Ireland) | |
| 2012 | 143.075729604 | 110.43054245 |
| 2013 | 152.696310968 | 104.201060099 |
| 2014 | 178.103050615 | 116.41361287 |
| 2015 | 202.51662394 | 122.244747865 |
| 2016 | 210.458666533 | 126.373592529 |
Figures 7.3 and 7.4 above show the distribution of assets and liabilities of Insurance Corporations by residency. Of total assets an average of approximately 80% were held abroad. This share of assets held by the rest of the world has increased steadily from 2012 to 2016, comprising 78% in 2012 to 84% in 2016.
From 2012 to 2016 the total liabilities held in Ireland has increased (from €110.4bn to €126.4bn), while the total liabilities held abroad has also increased (from €143.1bn to €210.5bn). Over the period 2012 to 2016, total liabilities abroad comprise an average of approximately 60% of the share of total liabilities of Insurance Corporations.
| Life Insurance | Non-life Insurance | Reinsurance | |
| 2008 | 59 | 156 | 117 |
| 2009 | 63 | 151 | 130 |
| 2010 | 64 | 145 | 126 |
| 2011 | 63 | 141 | 120 |
| 2012 | 63 | 133 | 106 |
| 2013 | 59 | 126 | 90 |
| 2014 | 54 | 108 | 67 |
| 2015 | 50 | 107 | 72 |
| 2016 | 53 | 110 | 68 |
The number of insurance companies has declined from 332 in 2008 to 231 in 2016. This reduction can be mainly attributed to a decline in the number of reinsurance companies, which fell from 117 in 2008 to 68 in 2016. Non-life insurance companies formed the largest category of insurance companies, while the number of life insurance companies has remained mostly stable.
| Gross Premiums Earned | Other Services Produced | Gross Claims Incurred | Capital Gains and Provisions | Portfolio Investment Income | Production Value | |
| 2008 | 39.261 | 1.67 | -24.475 | -7.783 | 2.868 | 11.541 |
| 2009 | 37.655 | 1.876 | -27.28 | -5.377 | 3.761 | 10.635 |
| 2010 | 39.144 | 2.045 | -29.949 | -4.03 | 4.131 | 11.341 |
| 2011 | 38.87 | 1.673 | -40.078 | 6.349 | 3.622 | 10.436 |
| 2012 | 41.695111576 | 1.650519868 | -37.716398853 | 2.958520813 | 3.39543861 | 11.983192014 |
| 2013 | 44.83557541236 | 2.11356268357 | -34.82626283908 | -3.726241321 | 3.255799399 | 11.65243333485 |
| 2014 | 47.07836807637 | 1.65233801815 | -34.83621732805 | -4.00031161918 | 3.15840891003 | 13.05258605732 |
| 2015 | 54.52604092231 | 2.01819411898 | -38.38277960926 | -6.96950578716 | 2.78996191832 | 13.98191156319 |
| 2016 | 47.743952754 | 2.04198110927 | -37.0155179268 | -1.15325422981 | 2.35787230008 | 13.97503400674 |
Source publication: Business in Ireland
Get the data: StatBank
Figure 7.6 above shows the trend in value added and production value from 2008 to 2016. Production value is calculated from gross premiums earned, gross claims incurred, portfolio investment income, capital gains and provisions, and other services produced. Usually the gross claims incurred, and the capital gains and provisions reduce the production value. Typically, gross premiums earned, portfolio investment income and other service produced have a positive value.
In the period 2008 to 2016 the production value of this sector showed a slight increase from €11.5bn to €14bn. The share of gross premiums increased from €39.3bn to €47.7bn during 2008-2016. In the same period gross claims incurred reached €40.1bn in 2011 and have reduced since.
| Gross Value of Reinsurance Services | Other Intermediate Consumption | Production Value | Value Added at Factor Cost | |
| 2008 | -2.925 | -6.278 | 11.541 | 2.338 |
| 2009 | -1.622 | -6.644 | 10.635 | 2.369 |
| 2010 | -1.358 | -6.772 | 11.341 | 3.211 |
| 2011 | -1.501 | -6.901 | 10.436 | 2.034 |
| 2012 | -2.304332024 | -6.798489309 | 11.983192014 | 2.880370681 |
| 2013 | -2.90925319322 | -6.6081569853 | 11.65243333485 | 2.13502315633 |
| 2014 | -3.09169587437 | -6.40719688291 | 13.05258605732 | 3.55369330004 |
| 2015 | -3.53264947464 | -7.72130076545 | 13.98191156319 | 2.7279613231 |
| 2016 | -3.111446554 | -7.84505416953 | 13.97503400674 | 3.01853328321 |
Get the data: StatBank
Value added is calculated as the residual in production value after the subtracting gross value of reinsurance services received and other intermediate consumption.
Figure 7.7 above shows that value added for Insurance Corporations ranged between €2bn-€3.6bn across the period with slight variations year-on-year.
| Life Insurance | Non-life Insurance | Reinsurance | All Insurance Companies | |
| 2008 | 326 | 410 | 34 | 770 |
| 2009 | 388 | 338 | 39 | 765 |
| 2010 | 368 | 345 | 49 | 762 |
| 2011 | 346 | 360 | 43 | 749 |
| 2012 | 266.918548 | 401.959632 | 41.757423 | 710.635603 |
| 2013 | 275.425102 | 407.979767 | 35.83277078 | 719.23763978 |
| 2014 | 246.417185 | 492.644663 | 38.23696028 | 777.29880828 |
| 2015 | 262.264367 | 505.273255 | 38.08553233 | 805.62315433 |
| 2016 | 288.023602 | 365.994635 | 32.33052101 | 686.34875801 |
Get the data: StatBank
The annual personnel costs for the entire Insurance sector remained around the same level until 2015. Between 2015 and 2016 the costs decreased from €805m to €686m. This reduction was driven by a decrease in personnel costs in the non-life insurance sector.
The non-life insurance sector comprises largest proportion of total personnel costs, contributing €366m of total personnel costs in 2016. The share of life insurance sector increased in 2016, contributing €288m of the total personnel costs.
| Life Insurance | Non-life Insurance | Reinsurance | All Insurance Companies | |
| 2008 | 1.079 | 0.285 | 0.205 | 1.569 |
| 2009 | -0.044 | 0.686 | 0.963 | 1.605 |
| 2010 | 0.586 | 0.551 | 1.314 | 2.451 |
| 2011 | -0.026 | 0.724 | 0.587 | 1.285 |
| 2012 | 0.557000824000001 | 0.790898305999998 | 0.821825947999999 | 2.16973507800001 |
| 2013 | 0.659678129000001 | 0.404586425429999 | 0.35151830026 | 1.41578551655 |
| 2014 | 1.01218030941 | 0.448312745070001 | 1.315792163 | 2.77639449176 |
| 2015 | 0.595230819050002 | 0.393246826189999 | 0.786363090919997 | 1.77486753283001 |
| 2016 | 0.886794716129998 | 0.566606817269999 | 0.899283706619999 | 2.35268523220001 |
Get the data: StatBank
Gross operating surplus is calculated as the value added at factor costs excluding personnel costs. Figure 7.9 shows the gross operating surplus trends vary considerably over the period. In the period of 2009 to 2015 the reinsurance sector had the highest level of gross operating surplus in the Insurance sector with the exception of 2011 and 2013, when non-life insurance and life insurance comprised higher proportions of gross operating surplus. The total operating surplus in 2016 was €2.4bn up only slightly from 2015 with the reinsurance sector accounting for approximately 40% of the total.
| Value Added (Life Insurance) | Value Added (Non-life Insurance) | Value Added (Reinsurance) | |
| 2008 | 1.404 | 0.695 | 0.239 |
| 2009 | 0.344 | 1.024 | 1.002 |
| 2010 | 0.954 | 0.896 | 1.363 |
| 2011 | 0.319 | 1.084 | 0.63 |
| 2012 | 0.823919372000001 | 1.192857938 | 0.863593370999999 |
| 2013 | 0.935103231 | 0.812566192430003 | 0.38735373304 |
| 2014 | 1.25859749441 | 0.940957408070004 | 1.35413839828 |
| 2015 | 0.857495186050002 | 0.898520081189999 | 0.83676788725 |
| 2016 | 1.17353031813 | 0.890809452269999 | 0.95419352063 |
Get the data: StatBank
Figure 7.10 shows the total value added by the Insurance sector classified by the type of insurance company. In 2016, of the €3bn total, life insurance represents 39% while reinsurance and non-life insurance consists of 32% and 28% of total value added, respectively. In 2008 total value added stood at €2.3bn, of which life insurance accounted for 60%. This share reduced sharply to 15% in 2009 and increased in subsequent years, remaining around the 30% level, only reducing to 16% in 2011.
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