Insurance sector profits up two and half times over

Insurance companies in the Portuguese market generated profits of €449 million in the first nine months of 2015, and up 268% year-on-year, the ASF – the insurance sector supervisory authority reported Thursday.

The ASF said that of the 46 companies under its supervision, 33 turned in positive results with the solvency margin coverage rate standing at 204%, with a value in the region of €3.4 billion, at the end of the third quarter.

This varied between the 208% rate in effect at life only insurance companies, 250% at non-life firms with insurance companies operating in both branches turning in an average ratio of 180%.

In overall terms, the direct production of insurance over the nine month period fell by 6.6% in year-on-year terms and driven by an 11.2% fall in the life sector with the non-life insurance sector registering 7.3% growth boosted by the entry of a new company into the market.

The ASF report stated that the quarterly cost of insurance policy liabilities had “remained relatively stable at around €560 million, with the overall evolution highly influenced by the life branch.”

Furthermore, Adelino Cardoso, Director of Communications at the insurance company Mútua dos Pescadores, told Lusa on Thursday that the sinking of a trawler with the loss of five lives would result in an insurance payout in the region of €1.4 million.

Cardoso said that the total was made up of around €1 million for compensation in relation to the loss of life with the remaining €400,000 due to the owner of the vessel.

The insurance company director added that pension payments would begin immediately and prior to official notification, with an initial €50,000 also due to be released although he was unable to confirm what would happen to the trawler itself that remains at the site of the accident, by the southern wall of the port of Figueira da Foz.

The trawler Olívia Ribau went down on October 6 with seven crew on board with two rescued by the maritime police and the loss of five lives.

JLS/AJG/KAR //KAR.

Lusa