The combined net income from insurance companies under the supervision of nearly quintupled ASF (390%) to EUR 378 million last year, which compares with profit of EUR 77 million in 2014, informed the supervisor.
“the overall net result was positive, amounting to EUR 378 million, which will be a good contribution to the sector’s capitalization strengthened,” reads the information note released by the Supervisory Authority of Insurance and Pension Funds (ASF).
Since the solvency margin coverage ratio stood at the end of 2015 by 238%, representing an increase of 32 percentage points over the end of 2014.
“a comfortable coverage rate of the solvency margin of insurance companies supervised by the ASF demonstrates the soundness of the insurance industry as well as their level of preparedness to meet the demands capital resulting from the entry into force on 1 January 2016, the new solvency regime (solvency II) “, stressed the entity led by José Almaça.
the level of solvency of an insurance company translates the existence of financial capacity of that company to meet its commitments, including the safety margin required to address adverse events less likely.
in the fourth quarter of 2015, direct insurance production for the activity in Portugal of insurance companies under the supervision of the ASF presented, overall, a decrease of 6.6% over the same period of 2014, largely explained by the Life segment. During the reference period, the cost of claims increased by 9.3%, also heavily influenced by redemptions in life insurance, according to the ASF.
The coverage ratio of technical reserves recorded a slight fall 0.3 percentage points, rising from 105.8% in December 2014 to 105.5% at the end of 2015.
During the quarter there was a reduction in the value of investment portfolios insurance companies 2.6%, compared to the amounts under management at the end of 2014, making a total amount of 49.5 billion euros.
Turning to the issue of the profits of the sector is note that the net result of insurance companies operating in the Portuguese market had amounted to 432 million euros in the first six months of the year, and there was a net loss in terms combined in the second half of the year of 54 million euros .
According revealed in September ASF, in 2015 half of the turn, the 47 insurance companies operating in Portugal and under their supervision, 37 showed positive results.
Refer was found that there are no details on the total of the 2015 fiscal year.
DN // ATR
Lusa / end