The rising value of shares and other investments considerably improved the return on investment figures for the insurance companies. The pension insurance companies that have published their annual report early all show more than 10% returns on investment.
Life insurance companies enjoyed the biggest growth, with income from premiums rising about 17% to about EUR 3 billion. The increase in the income from premiums and improved returns on investment also increased the quantity of life insurance savings, which totalled EUR 30.3 billion by the end of the 2009. This was about 10% more than the previous year.
The improved results for the insurance companies was made possible by the recovery of the financial markets, according to the Federation of Finnish Financial Services. Piia-Noora Kauppi, managing director of the Federation of Finnish Financial Services, believes that people are taking out insurance to secure their own and their families’ finances during difficult economic circumstances.
The effects of the recession were visible in the business insurance sector, where the income from premiums from accident insurance was 6% lower than the year before. On the other hand, the slowing down of the economy also reduced the number of workplace accidents, which boosted the profitability of the insurance companies.