ECB European Central Bank : Euro area insurance corporation and pension fund statistics

Statistics on Euro Area Insurance Corporations and Pension Funds: Third Quarter 2015

PRESS RELEASE 6 January 2016

Statistics on Euro Area Insurance Corporations and Pension Funds: Third Quarter 2015

In the third quarter of 2015, the total financial assets of euro area insurance corporations and pension funds decreased to €9,037 billion, from €9,069 billion in the previous quarter. Over the same period, the amount outstanding of insurance technical reserves, which are the main liabilities of insurance corporations and pension funds, increased to €7,524 billion, from

€7,447 billion. This increase was partly due to an increase in transactions by €42 billion.

Selected balance sheet items of insurance corporations and pension funds

(EUR billions; not seasonally adjusted; amounts outstanding at the end of the period; transactions during the period)

Amounts outstanding
2014	201	5	Amounts outstanding	Transactions1
Q4	Q1	Q2	2015 Q3
Total financial assets	8,850	9,431	9,069	9,037	n.a.
Insurance technical reserves2	7,259	7,648	7,447	7,524	42
net equity of households in life insurance reserves	3,764	3,912	3,874	3,886	25
net equity of households in pension fund reserves	2,595	2,799	2,640	2,716	15
prepayments of insurance premiums and reserves for outstanding claims	894	932	933	922	1
1 Transactions are available only for euro area insurance technical reserves.
2 Insurance technical reserves contain the provisions against policyholders or beneficiaries set aside by insurers and pension funds to meet future obligations. This item also includes prepayments of insurance premiums, which are related to non-life insurance and to reinsurance, and reserves for outstanding claims, which are the amounts expected to be paid out in settlement of claims, including disputed claims.

European Central Bank Directorate General Communications

Global Media Relations Division, Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany Tel.: [phone], e-mail: [e-mail], website: www.ecb.europa.eu

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PRESS RELEASE / 6 January 2016

Statistics on Euro Area Insurance Corporations and Pension Funds: Third Quarter 2015

Regarding the breakdown of the assets of the aggregated balance sheet of euro area insurance corporations and pension funds, holdings of debt securities accounted for 41% of the sector's total financial assets at end-September 2015. The second largest category of holdings were investment fund shares/units, which contributed 27% to the total financial assets. Finally, shares and other equity accounted for 11% of the total financial assets.

Turning to transactions in the main breakdowns of the insurance technical reserves, the net equity of households in life insurance reserves increased by €25 billion in the third quarter of 2015. The net equity of households in pension fund reserves increased by €15 billion in the same quarter, while transactions in prepayments of insurance premiums and reserves for outstanding claims increased by €1 billion.

Regarding the contributions of the two sub-sectors, insurance corporations' total financial assets accounted for €6,898 billion at end-September 2015, representing 76% of the aggregated balance sheet of the insurance corporations and pension funds sector, while the pension funds' total financial assets amounted to €2,139 billion.

For media queries, please contact Andrea Zizola, tel.: [phone].

Notes:

Further predefined tables, statistical data and methodological notes, as well as the advance release calendar, are available on the ECB's website at http://www.ecb.europa.eu/stats/money/icpf/html/index.en.html.

European Central Bank Directorate General Communications

Global Media Relations Division, Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany Tel.: [phone], e-mail: [e-mail], website: www.ecb.europa.eu

Reproduction is permitted provided that the source is acknowledged.

Table 1. Assets and liabilities of euro area insurance corporations and pension funds

(EUR billions; not seasonally adjusted; amounts outstanding at the end of the period 1) )

2014 Q4	2015 Q1	2015 Q2	2015 Q3
Total financial assets Currency and deposits of which: Deposits with euro area MFIs of which: Deposits with non-euro area residents Loans To euro area residents MFIs General government Other financial intermediaries Insurance corporations and pension funds Non-financial corporations Households To non-euro area residents Debt securities Issued by euro area residents MFIs General government Other financial intermediaries Insurance corporations and pension funds Non-financial corporations Issued by non-euro area residents Shares and other equity Quoted shares of which: Issued by euro area MFIs Unquoted shares Investment fund shares/units of which: Issued by euro area residents Money market fund shares of which: Issued by euro area MFIs Prepayments of insurance premiums and reserves for outstanding claims 2) of which: Euro area residents Other accounts receivable/payable and financial derivatives Non-financial assets	8,850 738 693 43 515 479 19 144 31 87 58 140 36 3,606 2,971 699 1,747 281 14 230 635 923 382 17 541 2,362 2,233 101 97 298 264 307 162	9,431 756 699 55 536 499 20 152 35 92 59 141 36 3,785 3,098 712 1,847 288 14 236 687 988 432 19 556 2,576 2,433 106 102 310 274 375 163	9,069 735 679 54 521 485 19 151 23 90 60 142 37 3,631 2,954 699 1,731 279 14 231 677 978 424 19 554 2,506 2,377 102 98 311 275 283 164	9,037 720 667 51 528 491 19 151 27 90 61 143 37 3,673 2,992 692 1,773 279 13 234 681 966 414 18 552 2,450 2,329 102 98 314 279 284 165
Total liabilities Loans Debt securities Shares and other equity Quoted shares Unquoted shares Insurance technical reserves Net equity of households in life insurance reserves Net equity of households in pension fund reserves Prepayments of insurance premiums and reserves for outstanding claims 3) Other accounts receivable/payable and financial derivatives Net worth 4)	8,472	8,968	8,683	8,747
	292	311	303	294
	60	62	61	59
	569	610	587	590
	159	186	161	159
	410	424	425	430
	7,259	7,648	7,447	7,524
	3,764	3,912	3,874	3,886
	2,595	2,799	2,640	2,716
	894	932	933	922
	291	337	284	280
	539	626	549	454

Source: ECB.

1. Figures may not add up due to rounding.

2. Includes reinsurance.

3. Prepayments of insurance premiums are related to non-life insurance and to reinsurance. Reserves for outstanding claims are the amounts expected to be paid out in settlement of claims, including disputed claims.

4. The net worth is calculated as the difference between total assets (financial and non-financial) and liabilities, and may also reflect statistical discrepancies.

S 1

ECB

Insurance corporations and pension funds

January 2016

Table 2. Assets and liabilities of euro area insurance corporations and euro area pension funds

(EUR billions; not seasonally adjusted; amounts outstanding at the end of the period 1) )

Insurance corporations		Pension funds
2015 Q2	2015 Q3	2015 Q2	2015 Q3
Total financial assets	6,893	6,898	2,176	2,139
Currency and deposits	536	524	199	196
Loans	464	467	57	61
Debt securities	3,093	3,127	538	545
Shares and other equity	702	711	271	255
Investment fund shares/units	1,537	1,511	970	939
Money market fund shares	91	92	11	10
Prepayments of insurance premiums and reserves	283	286	27	30
for outstanding claims
Other accounts receivable/payable and financial derivatives	182	180	102	102
Non-financial assets	123	124	40	41
Total liabilities	6,629	6,626	2,053	2,122
Loans	273	272	30	22
Debt securities	61	59	0	0
Shares and other equity	577	580	10	10
Net equity of households in life insurance reserves	3,874	3,886	0	0
Net equity of households in pension fund reserves	700	702	1,940	2,013
Prepayments of insurance premiums and reserves	930	918	4	4
for outstanding claims
Other accounts receivable/payable and financial derivatives	213	208	70	72
Net worth	387	396	163	58

1) For footnotes, see Table 1.

Chart 1: Net equity of households in life insurance reserves: breakdown by type of policy

Chart 2: Net equity of households in pension fund reserves: breakdown by type of plan

(percentage of total; end-December 2014) (percentage of total; end-December 2014) 2.7% Hybrid schemes

15.3% Defined contribution schemes

18.8% Unit-linked

81.2% Non-unit-linked

82.0% Defined benefit schemes

Source: ECB.

Note: Unit-linked insurance contracts do not guarantee a return to the policyholder, but rather offer a return which depends on the performance of the underlying portfolio. In a defined-contribution pension scheme, the participant's contributions are determined in advance, but the level of pension payments is not.

In a defined-benefit scheme, future pension payments are determined in advance, based, for example, on the wage history and years of service of a participant. A hybrid scheme is a combination of the two previous types of pension scheme described above.

S 2

ECB

Insurance corporations and pension funds January 2016