2005-08-17
The companies of Tapiola Group performed well 2005-01-01 – 2005-06-30 and the group had a stronger growth than the business. As a mutual group Tapiola uses the profit for benefits, service development and maintaining a first class insurance cover.
The expense ratios show that the development and steady increase of personnel have not reduced efficiency. The personnel increased with 73 employees during the period and the annual increase the last ten years has been about 90 employees.
All companies have excellent solvency.
The future challenge for Tapiola is to continue the strong growth in all business sectors.
Result
The total half year result for Tapiola Group’s six business sectors was EUR 364.1 million (EUR 147.4 million the same period 2004). The good result was bolstered by the heavy increase of valuation gain regarding investments, which previous year had the opposite effect decreasing the excellent result 2004.
The customer increase has been strong. The third millionth insurance contract was signed in July. At present Tapiola has 802,425 household customers and 31,809 corporate customers. The fund company has 12,468 unit holders and the bank 37,700 customers.
Especially the growth in the non-insurance business is gratifying. Tapiola General has continued growing and is now the second largest motor vehicle insurer. Tapiola General was also successful in the transfers of workers’ compensation insurance. In the transfers of employee pension insurance Tapiola Pension clinched a second place in Self-Employed Persons Pensions Act insurances but lost some Employees Pensions Act insurances to other companies. The development of Tapiola Life is reflected in the increase of life insurance savings. Tapiola Bank will continue to grow 2005.
The group’s turnover increased 6.6 per cent reaching EUR 1,296.5 million (EUR 1,216.0 million).
The investment profit was good. Tapiola General’s investment income was 5.9% (4.2%), Tapiola Pension’s 5.3% (2.7%), Tapiola Life’s 5.5% (3.1%) and Tapiola Corporate Life’s 5.1% (3.2%).
Tapiola Bank Ltd’s credit portfolio was EUR 202 million and total funds on deposits EUR 220 million. There is still a strong interest in the bank. Especially the facts that interest rate is paid on the daily balance and benefits are based on engagement rather than large depositions or loans have appealed to the customers. In June the bank opened an equity service offering stock trading and safekeeping. Tapiola Bank’s loss was EUR 4.6 million and costs of founding will still be booked a few years to come.
Tapiola Fund Management Company Ltd’s fund capital rose to EUR 848.3 million (EUR 730.2 million by the end of 2004).
Assets managed by Tapiola Asset Management Ltd increased to EUR 4,345.7 million (EUR 3,865.8 million by the end of 2004).
ADDITIONAL INFORMATION
www.tapiola.fi/tulos (in Finnish)