- The solvency margin stands at 301.2% and the coverage ratio at 113.9%
- The trend of concentration in the sector and improvement in the volume of premiums started in 2013 continues.
The insurance sector maintains high solvency and confirms the recovery of its business started in 2013. This is confirmed in the 2014 Sector Report, which was released today by the Directorate-General for Insurance and Pension Funds (DGSFP). This document includes the main data of the Spanish insurance market obtained from the information provided mainly by the entities that make up the sector. Along with this, it carries out a detailed analysis of the different functions carried out by the DGSFP, as well as the collaboration and participation activities in the different international forums.
In 2014, the trend of concentration in the sector continues, a phenomenon of recent years, as well as the recovery started in 2013 in the fall in the volume of premiums (-0.44% vs. -2.57%). This recovery is more pronounced in the Non-Life segment, which has a positive variation rate (1.14%). In this sector, there is an uneven variation by lines. While the Health and Death insurance lines continue to grow and with higher rates than the previous year (4.4% and 6%, respectively), the Auto and Multi-risk lines contracted (-3.3% and -0.4% respectively), as was the case in the previous year.
The technical-financial result of the Life branch worsens compared to the previous year (9.1% vs. 10.7%) due to the worsening of the technical result (-23.8% vs. -20%) and despite the improvement in the financial result (32.9% vs. 30.7%). In Non-Life, both the technical margin (5.8% vs. 5.1%) and the financial margin (4.8% vs. 4%) improved, producing a better technical-financial result (10.7% vs. 9 ,one%). The technical result is the one that comes from the exercise of the insurance activity and the financial result that results from the financial activity of the entity. With the sum of both, the technical-financial result is obtained.
The solvency ratios show a high solvency in the sector. They remain at surplus levels, although there is a slight decrease in both the coverage ratio (113.9% vs. 114%) and the solvency margin ratio (301.2% vs. 304%). Differentiating by sector, a different behavior is observed in Non-Life and in Life. Compared to the upward trend in Non-Life both in the coverage ratio (148.8% vs. 144.4%) and in the solvency margin ratio (402.3% vs. 395.9%), there is a slight decrease in the coverage ratio (108% vs. 108.6%), and a more pronounced decrease in the solvency margin (223.8% vs. 232%).
In relation to investments, the trend of progressive reduction of the weight of private fixed income in favor of public fixed income continues.
Regarding the pension plans and funds sector, during 2014 the process of decreasing the number of managing entities and, especially, depository entities, as well as the number of pension plans, continues. On the contrary, the increase in the number of pension funds continues.
In relation to the degree of development of pension plans and funds, it should be noted that the growth in managed assets continues (8.15% vs. 6.75%) as a consequence of the improvement in financial markets, the increase in contributions to pension plans (11.75% vs. -1.03%) and the reduction in benefits paid which, unlike the previous year, during 2014 decreased (-7.14% vs. 3.52%) . This reduction is also observed in the liquidity of consolidated rights for serious illness, long-term unemployment and cancellation of the mortgage in which there has been a decrease in the amount made liquid by these concepts (-8.35%) highlighting the assumption long-term unemployment. In this case, in 2014 a reduction was observed both in the number of beneficiaries who requested it (-20.2% vs. 1.8%) and in the amount charged for this concept (-6.8% vs. 7, 5%).
Finally, the insurance and reinsurance mediation sector has continued during this year to perform a fundamental task, both for the client and for the insurance and reinsurance companies, serving both as a basic mechanism in the distribution of insurance and as an information channel. adequate and transparency in favor of the client.
Link to the 2014 Sector Report: