18.8.2004
“At present Tapiola is developing its services in order to offer customers improved insurance, financial and risk management services. Regarding customer segments and products Tapiola also aims to have a pricing which corresponds with the risks”, says President Asmo Kalpala.
“Tapiola Bank, which opened for the public in February, offers Tapiola’s 1.1 million individual customers highly competitive bank services. The bank business has started well and the number of customers has exceeded our expectations.”
Mutual Tapiola is owned by the policyholders, thus the surplus is used to offer benefits to the owners, that is to say the customers. Tapiola General’s combined ratio (describing the actual underwriting performance of a non-life insurance company) of 102.8 (100.2 calculated in accordance with IAS) is exceptionally good considering that Tapiola General’s present bonuses and rebates increase the combined ratio by about 8 percentage units. This means that Tapiola General annually distributes about 35 million euro bonuses and rebates.
The total return of the life insurance capital in Tapiola will be 4.5-5 per cent in 2004. The transfers to additional benefits resulting from the semi-annual result make good returns possible even in the future.
In the transfer of the statutory insurances between the insurance companies, Tapiola was able to maintain its position. Concerning the transfer of workers' compensation insurances and statutory employee pension insurances submitted by companies, Tapiola was the second best in the country. The premium income from major clients increased. Performance as a motor vehicle insurer was proficient. Especially the number of motor vehicles insured in Tapiola will continue to increase more than the business in general.
The result of Tapiola Group’s insurance companies the first half of 2004 and before the valuation differences increased to 189.8 (152.6) million euro. The figure in the brackets is from the same period last year. Taking the valuation differences into consideration, the total result was 146.7 (211.2) million euro.
The combined result of Tapiola’s six business areas including fund, investment and bank business amounted to 141.1 (209.5) million euro.
The turnover increased by 3.4 per cent reaching 1,333.7 (1,293.0) million euro.
The solvency capital increased by 97.6 million euro amounting to 2,279.8 million euro (2,182.1 million euro by the end of 2003).
The result of the groups of companies in Tapiola General reached 76.2 (54.7) million euro. The premium income rose by 10.5 per cent to 361.7 (293.2) million euro. The increase has been extra significant in vehicle insurances and Tapiola has maintained its position as the second largest motor vehicle insurer. The turnover rose by 4.0 per cent to 376.8 (362.2) million euro. The combined ratio improved and was 102.8 (106.8) per cent – 100.2 (104.2) per cent calculated in accordance with the international IAS standard. The total net investment income increased by 21.2 per cent to 87.8 (72.5) million euro. The six month return on capital employed was 4.2 (3.9) per cent. The solvency of 231.9 per cent is among the best in the business (by the end of 2003 the solvency was 226.0 per cent).
The overall result of Tapiola Pension was 53.1 (130.6) million euro. The result before the valuation differences reached 76.8 (75.2) million euro. The premium income increased by 2.8 per cent amounting to 528.6 (514.2) million euro. The net return from investment in profit and loss account rose by 14.5 per cent to 174.6 (152.4) million euro. The net return on investments at current value was 150.9 (202.2) million euro. The six month return on capital employed was 2.7 (4.1) per cent. The solvency increased and exceeded the minimum requirement by a factor of 2.6, the same factor as by the end of last year.
The result for the group of companies comprising of Tapiola Life and Tapiola Corporate Life increased to 36.8 (22.7) million euro. The premium income increased by 5.9 per cent to 88.4 (83.5) million euro. The turnover rose by 8.5 per cent to 207.2 (191.0) million euro. The increase of efficiency in the life insurance business started in the beginning of 2003 decrease the expense ratio to 119.3 (157.1) per cent. The net return from investment in profit and loss account increased by 23.6 per cent to 81.6 (66.1) million euro. The six month return on capital employed was 3.1 (3.7) per cent for Tapiola Life and 3.2 (3.9) per cent for Tapiola Corporate Life. The solvency ratio was 14.7 per cent (15.3 per cent by the end of 2003) and exceeded the minimum requirement by a factor of about 3.
The assets managed by Tapiola Asset Management Ltd increased to 3,582.5 million euro (3,322.0 million euro by the end of 2003).
The fund capital of Tapiola Fund Management Company Ltd rose to 633.8 million euro (528.8 million euro by the end of 2003). The amount of unit holders increased to 9,041 (6,777 by the end of 2003).
The business of Tapiola Bank Ltd has started well. The total funds on deposits amounts to 48.0 million euro and the credit portfolio to 111.5 million euro. The bank has about 18,000 customers.
ADDITIONAL INFORMATION
www.tapiola.fi/Tapiola-ryhmä/Taloudellisia tietoja (in Finnish)