21 August 2006
PRESSRELEASE
Tapiola Pension’s total result during the first half of 2006 showed a deficit as expected. This is a result of a high technical rate of interest and demanding investment markets. The total result was EUR -50.1 million (EUR 195.1 million during the same period in 2005).
The loading profit is still on an excellent level. The operating expenses were EUR 6.0 million (EUR 6.1 million) lower than the premium expense loading and amounted to 75.4 percent (73.6%) of the premium expense loading.
The effect of the new administrative model for the authorized pension companies creates some uncertainty for the future utilization of the synergy within the Tapiola Group.
The solvency margin amounted to 21.1 percent (24.1% in 12/2005) of the technical provisions in solvency accounting. The solvency margin was 2.1-fold (2.6-fold 12/2005) the solvency limit.
Tapiola Pension’s premiums written rose by 1.2 percent to EUR 595.6 million (EUR 588.5 million). The premiums written from basic employee pension insurances grew by 0.5 percent to EUR 517.7 million (EUR 515.1 million). The premium income from insurances in accordance with the minimum cover stipulated in the Self-Employed Persons Pensions Act grew by 6.1 percent to EUR 76.4 million (EUR 72.0 million).
Tapiola Pension showed loss in transfers of employee pension insurances (difference between insurances transferred to and from the company) during the three first quarters of the year. The loss was EUR 9.8 million of which about half results from transfers to competitors due to acquisitions. In transfers of insurances based on the Self-Employed Persons Pensions Act the net result during the three first quarters was 261 new insurances, which is the second best result in the business.
The estimated yearly employee pension insurance total payroll insured by Tapiola Pension increased by 5.3 percent reaching EUR 4,946.0 million (EUR 4,695.0 million). The reported income for insurance based on the Self-Employed Persons Pensions Act increased by 8.3 percent amounting to EUR 780.8 million (EUR 721.2 million).
In the end of the period Tapiola Pension had 109,493 pensioners (108,347 in 12/2005).
Claims incurred increased by 5.8 percent being EUR 492.9 million (EUR 465.7 million).
Tapiola Pension’s investment income at current value during the first half of 2006 was 1.0 percent (5.3%). Investments at current value reached EUR 7,108.9 million (EUR 6,784.4 million in 12/2005). The net investment income at current value was EUR 72.7 million (EUR 328.0 million).
Additional information
Olli-Pekka Laine, Managing Director, Tapiola Pension, tel. +358 9 453 2619
Markku Paakkanen, Director, Financial and Data Administration Services, tel. +358 9 453 2500
www.tapiola.fi/tulos (in Finnish)