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 Scheme | (AF.7) Financial Derivatives and Employee Stock Options | (AF.8) Other Accounts Receivable | Total | |
| 2012 | 21.249522606 | 65.51165482 | 3.674577984 | 110.196454948 | 28.352334966 | 2.234791903 | 15.461649443 | 246.68098667 |
| 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 | 21.638360974 | 73.153205195 | 2.167612932 | 163.781314108 | 33.733395556 | 1.648726952 | 20.356454404 | 316.479070121 |
| 2016 | 21.176625336 | 71.696538672 | 3.514152938 | 177.11912369 | 35.336815628 | 1.669487419 | 22.219611769 | 332.732355452 |
| 2017 | 22.572230413 | 70.166512538 | 3.638919551 | 194.053124026 | 31.918460314 | 1.451743848 | 20.67858054 | 344.47957123 |
| 2018 | 21.783467144 | 70.65285499 | 3.864193453 | 189.127776456 | 31.389535081 | 1.404410102 | 22.912207099 | 341.134444325 |
Get the data: StatBank (IFI03)
The size of the balance sheet of the insurance corporations sector increased every year during the period between 2012 and 2017, and remained broadly unchanged between 2017 and 2018 at just over €340bn.
Assets were largely made up of debt securities (AF.3) and equity (AF.5), which combined comprise over 76% of total balance sheet assets in 2018.
| (AF.4) Loans | (AF.5 + AF.7) Equity, Investment Fund Shares/Units, Financial Derivatives and Employee Stock Options | (AF.6) Insurance, Pensions and Standardised Guarantee Scheme | (AF.8) Other Accounts Receivable | Total | |
| 2012 | 4.156360982 | 28.393421616 | 206.737798196 | 14.21869126 | 253.506272054 |
| 2013 | 3.505970667 | 25.770851255 | 212.162375226 | 15.45817392 | 256.897371068 |
| 2014 | 3.819802856 | 28.056630784 | 246.517968104 | 16.122261743 | 294.516663487 |
| 2015 | 4.086419985 | 30.909782145 | 267.42485943 | 18.351096791 | 320.772158351 |
| 2016 | 4.096789789 | 34.21901754 | 279.524449766 | 19.143689967 | 336.983947062 |
| 2017 | 3.218050501 | 34.843268508 | 292.94407299 | 17.993355681 | 348.99874768 |
| 2018 | 3.35321786 | 36.905777229 | 285.746634204 | 20.061487248 | 346.067116541 |
Get the data: StatBank (IFI03)
The increase in liabilities between 2012 and 2018 was mainly driven by insurance, pensions and standardised guarantee schemes (AF.6), which rose by €79bn between 2012 and 2018 and accounts for 83% of the total liabilities in 2018. The other instruments play a minor role in the development of the liabilities.
| Total Assets (Rest of the World) | Total Assets (Ireland) | |
| 2012 | 192.366626982 | 54.314359688 |
| 2013 | 205.958553449 | 48.25359127 |
| 2014 | 240.012752532 | 50.978672587 |
| 2015 | 264.536258353 | 51.942811767 |
| 2016 | 279.569642651 | 53.162712802 |
| 2017 | 291.943662133 | 52.535909095 |
| 2018 | 288.75989451 | 52.374549815 |
Assets held abroad rose by €96.4bn between 2012 and 2018, accounting for more than 80% of total assets in 2018. The assets held in Ireland have ranged between €48.3bn and €54.3bn in the period 2012 to 2018.
| Total Liabilities (Rest of the World) | Total Liabilities (Ireland) | |
| 2012 | 143.075729604 | 110.43054245 |
| 2013 | 152.696310969 | 104.201060099 |
| 2014 | 178.892050616 | 115.62461287 |
| 2015 | 198.531760378 | 122.240397973 |
| 2016 | 210.601118533 | 126.382828529 |
| 2017 | 222.383504522 | 126.615243158 |
| 2018 | 220.670887659 | 125.396228883 |
From 2012 to 2018 both the liabilities held in Ireland and the liabilities held abroad have increased, with foreign liabilities at a higher rate. The share of liabilities held abroad in 2018 is 64% or €125.4bn.
| Life-Insurance | Non-life Insurance | Reinsurance | Total | |
| 2009 | 63 | 151 | 130 | 344 |
| 2010 | 64 | 145 | 126 | 335 |
| 2011 | 63 | 141 | 120 | 324 |
| 2012 | 63 | 133 | 106 | 302 |
| 2013 | 59 | 126 | 90 | 275 |
| 2014 | 54 | 108 | 67 | 229 |
| 2015 | 50 | 107 | 72 | 229 |
| 2016 | 53 | 110 | 68 | 231 |
| 2017 | 51 | 113 | 77 | 241 |
| 2018 | 52 | 105 | 72 | 229 |
The number of insurance companies has declined from 344 in 2009 to 229 in 2018. This reduction can be mainly attributed to a decrease in the number of reinsurance and non-life insurance companies, which reduced by 58 and 46 companies respectively between 2009 and 2018, with the majority of the decrease occurring between 2009 and 2014. The number of insurance companies remained relatively steady in the recent five years.
| Gross Premiums Earned | Other Services Produced | Gross Claims Incurred | Capital Gains and Provisions | Portfolio Investment Income | Production Value | |
| 2009 | 37.655 | 1.876 | -27.28 | -5.377 | 4.664 | 11.539 |
| 2010 | 39.144 | 2.045 | -29.949 | -4.03 | 4.717 | 11.928 |
| 2011 | 38.87 | 1.673 | -40.078 | 6.349 | 4.122 | 10.936 |
| 2012 | 41.695111576 | 1.650519868 | -37.716398853 | 2.958520813 | 3.898879876 | 12.48663328 |
| 2013 | 44.83557541236 | 2.11356268357 | -34.82626283908 | -3.726241321 | 3.637162778 | 12.03379671385 |
| 2014 | 47.07836807637 | 1.65233801815 | -34.83621732805 | -4.00031161918 | 3.52484371943 | 13.41902086672 |
| 2015 | 54.48215354436 | 1.88304274737 | -38.27383111826 | -7.03151388116 | 3.35989544712 | 14.41974673943 |
| 2016 | 48.120488754 | 2.08022910927 | -37.2730539268 | -1.31043451581 | 2.87134809002 | 14.48857751068 |
| 2017 | 52.692570985 | 2.40963373009 | -39.4530762394 | -3.9333127153 | 3.10516206068 | 14.82097782107 |
| 2018 | 50.579266127 | 2.30048625711 | -37.18704233614 | -2.6789857766 | 2.26649076098 | 15.28021503235 |
Source publication: Business in Ireland 2017
During the period 2009 to 2018 the production value of this sector increased from €11.5bn to €15.3bn , with increases seen in every year except for 2011 and 2013. Gross premiums earned and gross claims incurred have the greatest influence on the production value with 2018 values of €50.6bn and €37.2bn respectively.
| Reinsurance Services | Other Intermediate Consumption | Production Value | Value Added at Factor Cost | |
| 2009 | -1.622 | -6.644 | 11.539 | 3.273 |
| 2010 | -1.358 | -6.772 | 11.928 | 3.799 |
| 2011 | -1.501 | -6.901 | 10.936 | 2.533 |
| 2012 | -2.304332024 | -6.798489309 | 12.48663328 | 3.38381194700001 |
| 2013 | -2.90925319322 | -6.6081569853 | 12.03379671385 | 2.51638653533 |
| 2014 | -3.09169587437 | -6.40719688291 | 13.41902086672 | 3.92012810944 |
| 2015 | -3.54458376165 | -7.72014583449 | 14.41974673943 | 3.15501714329 |
| 2016 | -3.235094554 | -7.86912021253 | 14.48857751068 | 3.38436274415001 |
| 2017 | -2.8766179354 | -8.3692029747 | 14.82097782107 | 3.57515691097 |
| 2018 | -3.456365197 | -8.169006081 | 15.28021503235 | 3.65484375435001 |
Value added is calculated as the residual after subtracting the gross value of reinsurance services received and other intermediate consumption from the production value.
The value added for Insurance Corporations ranged between €2.5bn and €3.9bn during the period with slight variations year-on-year.
| Life Insurance | Non-life Insurance | Reinsurance | |
| 2009 | 0.505 | 1.164 | 1.604 |
| 2010 | 1.046 | 0.994 | 1.759 |
| 2011 | 0.416 | 1.234 | 0.883 |
| 2012 | 0.924796307000001 | 1.325347273 | 1.133668367 |
| 2013 | 1.006241383 | 0.957438357430003 | 0.55270679504 |
| 2014 | 1.35174173641 | 0.999737669070004 | 1.56864870468 |
| 2015 | 0.956727947050002 | 1.06353988619 | 1.13474931005 |
| 2016 | 1.23194249213 | 1.00983807227 | 1.14258218757 |
| 2017 | 1.22414122738 | 1.14416937059 | 1.206846313 |
| 2018 | 1.12405875447 | 1.24042253094 | 1.290362469 |
In 2018, all three types of insurance corporations contributed a similar amount of gross value added to the €3.7bn total. This is also the case between 2015 and 2017. During the earlier years, the share each insurance type contributed to the GVA experienced significant fluctuations from year to year.
| Life Insurance | Non-life Insurance | Reinsurance | All Insurance Companies | |
| 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 | 424 | 432 | 37 | 893 |
| 2017 | 500.838380271746 | 414.948652396304 | 38.0051152714557 | 953.792147939505 |
| 2018 | 500.838380271746 | 414.948652396304 | 38.0051152714557 | 953.792147939505 |
The annual personnel costs for the entire insurance sector experienced little change between 2009 and 2015. Between 2015 and 2016 the costs increased by €87.4bn due to a sharp increase in the personnel costs of life insurance corporations. At the same time the personnel costs of non-life insurances declined, but by less than the increase in life insurance costs. The total personnel costs of the insurance corporations sector grew from €806m in 2015 to €954m in 2018. Personnel costs of reinsurance are not significant in relation to the total costs of the insurance corporations sector and stayed relatively constant throughout the observed period.
| Life Insurance | Non-life Insurance | Reinsurance | All Insurance Companies | |
| 2009 | 0.117 | 0.826 | 1.565 | 2.508 |
| 2010 | 0.678 | 0.649 | 1.71 | 3.037 |
| 2011 | 0.071 | 0.874 | 0.84 | 1.785 |
| 2012 | 0.657877759000001 | 0.923387640999999 | 1.091910944 | 2.67317634400001 |
| 2013 | 0.730816281000001 | 0.549458590430003 | 0.51687402426 | 1.79714889555 |
| 2014 | 1.10532455141 | 0.507093006070004 | 1.5304117444 | 3.14282930116 |
| 2015 | 0.694463580050002 | 0.558266631189999 | 1.09666377772 | 2.35301714329 |
| 2016 | 0.807942492129998 | 0.577838072269999 | 1.10558218757 | 2.49136274415001 |
| 2017 | 0.723302847108257 | 0.729220718193696 | 1.16884119772854 | 2.6213647630305 |
| 2018 | 0.623220374198252 | 0.825473878543696 | 1.25235735372854 | 2.7010516064105 |
Gross operating surplus is calculated as the value added at factor costs excluding personnel costs.
The gross operating surplus of the insurance sector was highly volatile between 2009 and 2015 and slowly and constantly increased since. The strongest variations can be seen for re-insurance and life insurance.
During the period 2009 to 2018 the reinsurance sector had the highest share in gross operating surplus in the insurance corporations sector, with the exception of 2011 and 2013, when non-life insurance and life insurance comprised higher proportions of gross operating surplus, respectively.
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