The Financial Sector in Figures: Non-life Insurance Companies
- Danish non-life insurance companies reported a total result before taxes of DKK 12.2 bn. in 2024, which is DKK 1.2 bn. higher than in 2023.
- The improvement of the result is primarily driven by a stronger underwriting result. Both the loss ratio and expense ratio were lower in 2024, while gross premiums grew by DKK 4.2 bn. to a total of DKK 83.1 bn.
- Net investment return amounted to DKK 3.9 bn. in 2024, which is lower than in 2022 and 2023.
- The profitability of the companies still varies considerably, both in terms of the underwriting results and investment return. None of the companies had a net negative investment return in 2024, whereas three companies reported a negative result before taxes.
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Overall, the non-life insurance companies had 2.4 times more capital than the solvency capital requirement. There is considerable variation in the companies’ surplus coverage.
Figure 1: Earnings
Figure 2: Contributions to changes in Return on Equity
Figure 3: Companies’ individual profitability in 2024
Figure 4: Combined ratio
Definitions, combined ratio:
Loss ratio (gross) \(:=\) \(\frac{\text{Claims expenses }}{\text{Premium income - Bonuses and premium discounts}} * 100\)
Expense ratio (gross) \(:=\) \(\frac{\text{Insurance operating expenses}}{\text{Premium income - Bonuses and premium discounts}} * 100\)
Loss ratio (net) \(:=\) \(\frac{\text{Claims expenses f.o.a.}}{\text{Premium income f.o.a. - Bonuses and premium discounts}} * 100\)
Expense ratio (net) \(:=\) \(\frac{\text{Insurance operating expenses f.o.a.}}{\text{Premium income f.o.a. - Bonuses and premium discounts}} * 100\)
Combined ratio \(:=\) \(\text{Loss ratio + Expense ratio}\)
Figure 5: Loss ratioes by line of business
Figure 6: Capital requirements
Table 1: Summary of income statement
| Selected result items (DKK mn.) | 2020 | 2021 | 2022 | 2023 | 2024 | 2020-2024 | 2023-2024 |
|---|---|---|---|---|---|---|---|
| Gross premiums | 69,618 | 75,188 | 74,978 | 78,931 | 83,094 | 19.4 | 5.3 |
| Ceded insurance premiums | 4,042 | 4,319 | 4,709 | 5,089 | 4,604 | 13.9 | -9.5 |
| Premium income, f.o.a. | 65,125 | 69,570 | 70,363 | 73,796 | 77,299 | 18.7 | 4.7 |
| Claims expenses, f.o.a. | 44,453 | 46,622 | 48,365 | 52,124 | 53,694 | 20.8 | 3.0 |
| Operating expenses, f.o.a. | 10,741 | 11,425 | 12,330 | 12,802 | 13,196 | 22.9 | 3.1 |
| Underwriting result | 8,898 | 10,019 | 8,649 | 8,217 | 9,876 | 11.0 | 20.2 |
| Investment return (after technical interest) | 2,622 | 4,423 | -4,359 | 3,724 | 3,911 | 49.2 | 5.0 |
| Result, before taxes | 12,133 | 13,879 | 3,195 | 10,962 | 12,153 | 0.2 | 10.9 |
| Taxes | 2,190 | 2,554 | 742 | 2,472 | 2,784 | 27.2 | 12.7 |
| Result, after taxes | 9,943 | 11,325 | 2,454 | 8,491 | 9,369 | -5.8 | 10.3 |
Table 2: Summary of balance sheet
| Selected balance sheet items (DKK mn.) | 2020 | 2021 | 2022 | 2023 | 2024 | 2020-2024 | 2023-2024 |
|---|---|---|---|---|---|---|---|
| Provisions for insurance and investment contracts | 96,965 | 100,160 | 95,893 | 99,375 | 99,038 | 2.1 | -0.3 |
| Debts | 22,719 | 16,914 | 18,834 | 21,458 | 19,818 | -12.8 | -7.6 |
| Own funds | 80,561 | 61,654 | 79,213 | 76,389 | 77,267 | -4.1 | 1.1 |
| Total liabilities | 206,484 | 186,904 | 205,418 | 207,434 | 205,893 | -0.3 | -0.7 |
Table 3: Key figures
| Key figures (percent) | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Loss ratio, gross | 68.2 | 67.0 | 68.3 | 69.7 | 68.7 |
| Expense ratio, gross | 16.4 | 16.4 | 17.3 | 17.0 | 16.8 |
| Loss ratio, net | 69.3 | 68.5 | 69.8 | 71.4 | 70.1 |
| Expense ratio, net | 16.8 | 16.8 | 17.8 | 17.5 | 17.2 |
| Combined ratio, net | 86.1 | 85.3 | 87.6 | 88.9 | 87.3 |
| Minimum capital requirement coverage (MCR ratio) | 7.2 | 6.7 | 6.4 | 6.5 | 6.4 |
| Solvency capital requirement (SCR ratio) | 2.7 | 2.5 | 2.4 | 2.4 | 2.4 |
| Return on equity, before taxes | 15.1 | 22.5 | 4.0 | 14.4 | 15.7 |
| Return on equity, after taxes | 12.3 | 18.4 | 3.1 | 11.1 | 12.1 |
About the statistic
“The Financial Sector in Figures: Non-life insurance companies” summarizes financial statements and key figures for non-life insurance companies under Danish supervision. Captive insurance companies are not included in the figures. The figures cover 42 companies for the year 2024.
Non-life insurance companies offer contracts in which they assume financial risks from the policyholder in exchange for a premium, for example, home contents and motor insurance.