- The solvency margin stands at 301.2% and the coverage ratio at 113.9%
- The trend of concentration of the sector and improvement of 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 stated in the Sector Report 2014, which has been made public today by the General Directorate of 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 developed by the DGSFP, as well as the activities of collaboration and participation in the different international forums.
In 2014 the trend of concentration of the sector continues, a phenomenon of recent years, as well as the recovery initiated 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 branches. While the branches of Health and Deaths continue to grow and with rates higher than those of the previous year (4.4% and 6% respectively), the Automobile and Multi-risk branch contracted (-3.3% and -0.4% respectively), as was the case in the previous year.
The technical-financial result of the Life branch worsens with respect to the previous year (9.1% vs. 10.7%) due to the worsening of the technical result (-23.8% versus -20%) and despite the improvement in the financial result (32.9% versus 30.7%). In Non-Life, both the technical margin (5.8% vs. 5.1%) and the financial margin (4.8% vs. 4%) improve, producing a better technical-financial result (10.7% vs. 9 ,one%). The technical result is that which 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 both in the coverage ratio (113.9% vs. 114%) and in the solvency margin ratio (301.2% vs. 304%). Differentiating by sectors shows a different behavior in Non-Life and Life. Against 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 for Vida a slight decrease in the coverage ratio (108% vs. 108.6%), and a more marked 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.
With regard to the sector of pension plans and funds, during 2014 the process of decreasing the number of management 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.
Regarding the degree of development of pension plans and funds, it should be noted that the growth of managed assets continues (8.15% vs. 6.75%) as a result of the improvement of financial markets, of the increase in contributions to pension plans (11.75% vs. -1.03%) and the reduction in benefits paid that, unlike the previous year, decreased in 2014 (-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 of long-term unemployment. For this case, in 2014 there is a reduction both in the number of beneficiaries who requested it (-20.2% vs. 1.8%) and in the amount charged for this concept (-6.8% versus 7, 5%).
Finally, the insurance and reinsurance mediation sector has continued during this year performing 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 as an information channel. adequate and transparency in favor of the client.
Link to the 2014 Sector Report: