The customer growth in Tapiola has been significant. Last year the amount of household customers increased by about 20,000 to 793,058. The amount of corporate customers and organizations was 32,868 at the end of 2004 and their share of the premium income is 58%. At the end of February 2005, Tapiola Bank had more than 30,000 customers.
Tapiola increased the customer benefits and developed its services. The bonuses and rebates to customers amounted to EUR 66.2 million (2003 EUR 55.4 million).
The growth is reflected in different business areas. Year 2004 was the tenth year of growth in Tapiola General, and it is now the second largest insurer of motor vehicles. Measured in registrations, Tapiola General is the market leader. In transfers of worker’s compensation insurance Tapiola General clinched second place 2004, and in October Tapiola Pension reached its best result ever in transfers of employee pension insurance. The new saving and investment business areas started well and the volume development exceeded the goals.
Tapiola Group strengthened its market position. Tapiola General’s market share increased to 17.5% (16.7%) and Tapiola Pension’s to 15.4% (15.1%). The life insurance companies’ market share in premium income was 6.9% (6.7%).
The amount of employees has increased evenly along with the service development and the growth of insurance portfolio with about 90 employees annually the last 10 years. At present, Tapiola employs about 2,400 employees. From the 2004 result EUR 2.5 million was transferred to the personnel fund.
The return on investments was good. The return on Tapiola General’s investments amounted to 8.5% (10.4%), Tapiola-Pension’s to 7.2% (7.0%), Tapiola Life’s to 7.8% (7.4%) and Tapiola Corporate Life’s to 7.1% (7.0%).
The results 2004 were excellent and the companies’ solvency was high-class. The operating profit of the Tapiola General group including Tapiola Bank reached EUR 102.4 million (EUR 37.6 million). Tapiola Pensions total result was record high amounting to EUR 228.1 million (EUR 209.9 million). The life insurance companies’ operating profit was EUR 63.0 million (EUR 7.6 million).
Tapiola Bank opened for the public in February 2004. By the end of the year it had 26 523 customers. The credit portfolio reached EUR 156 million and deposits EUR 173 million. The interest in Tapiola Bank exceeded all expectations. 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. Tapiola Bank’s loss under the accounting period amounted to EUR 10.8 million, which is less than expected. Costs of founding will also show in the books the following three years.
The fund capital managed by Tapiola Fund Management Company Ltd increased to EUR 730.2 million (EUR 528.8 million). The amount of unit holders reached 10,167 (6,777) and the company’s operating profit was EUR 0.8 million (EUR 0.2 million). The market share in fund business was 2.3% (2.4%).
Assets under management by Tapiola Asset Management Ltd increased to EUR 3,865.8 million (EUR 3,322 million).