Insurance Sector Expands Further
30 October 2008
Figures released by the MFSA today show an overall expansion in insurance business of 41% over one year. Total gross premiums written in 2007 amounted to €764 million, a €223 million increase from the previous year.
The largest volume increase was for non-life risks based outside Malta, which expanded by €161 million. This was followed by a significant increase in life insurance business written in Malta, which went up by €82 million. This translates into an increase of 56% in this segment of the market over one year, compared to modest increases registered over previous years. By contrast, the figures for life insurance risks based outside Malta show a decrease of euro;10 million, while the local non-life business sector remained static.
In the general business sector, the insurance of risks based outside Malta accounted for €418.7 million in GPW, whereas risks based in Malta accounted for €90.1 million. The largest class of business in the sector is the fire and other property damage class, followed by general liability and motor insurance. At the end of the year, the reinsurance share of the business stood at €172 million or 44.6%, with the remainder being retained by licence holders. The highest incidence of reinsurance is in the general liability class, standing at 57.9%.
In the life insurance sector, €228 million in GPW related to risks based in Malta, while risks based outside Malta accounted for the remaining €37.1 million. Over €172 million was derived from single premiums, while €97 million came from regular premiums. Reinsurance GPW for the sector was just over €27 million.
The full results for 2007 have been published in the insurance section on the MFSA website.
