Annual Malta insurance gross premiums hits €1.7 billion

Malta's local insurance sector collectively hit the €1.7 billion mark (€1,748,797,392) on the annual gross premiums in 2013, up from €1.6 billion (€1,656,762,793) in 2012.

This represents an increase of over 439% since 2008.

In 2011, the figure stood at €1,252,630,650, while in 2010, this stood at € 670,182,354.

The figure emerged from the Malta Insurance Management Associations (MIMA) Annual Market Survey 2013, which was unveiled on Tuesday morning.

According to the survey the total number of international insurance undertakings managed by MIMA members is 62, 4 of which are self-managed, totaling 66 international insurance undertakings.

This has grown steadily from 20 insurance undertakings in 2008.

Of these 66, 37 undertakings are undertakings that insure third parties (such as conventional insurance companies), 11 are pure affiliates and 18 are protected cell companies.

All 66 undertakings passport services throughout the European Union.

Pure affiliates are insurance companies that insure only other companies within the same group, while protected cell companies are Insurance companies that create cells within their own corporate entity and write risks through them in a way that protects other cells, and the Core.

While in 2008 the number of undertakings stood at 20, this increased to 38 in 2009, 41 in 2010, 50 in 2011, and 59 in 2012.

These 62 insurance undertakings also paid €95,073,875 in tax in 2013, as compared to € 80,753,798 in 2012, € 70,140,897 in 2011, and € 45,428,412 in 2010.

The Total Cash and Investments held by the said 62 managed insurance undertakings in 2013 stood at €3,816,785, 285, while in 2012 it stood at €3,507,198,369, and in 2011 the figure was €1,170,113,929.

The survey was welcomed by Parliamentary Secretary for Competitiveness and Economic Growth Edward Zammit Lewis, who welcomed the growth and stability that the local financial services and insurance sectors represent.

He said that the survey is a "very valid undertaking as it provides an insight into the depth of this growing insurance industry."

"The new government is committed to seeing financial services develop as a strong pillar of our economy and the appointment of a Parliamentary Secretary for the promotion of this industry among others," Zammit Lewis said.

He noted that the survey found that the insurance industry is growing healthily, and said that the government is pleased to confirm its continuing support for the industry and the MIMA.

He said that this would be done to ensure that the whole of the financial services industry is supported "in all aspects."

Zammit Lewis also emphasised the importance of ensuring that the local educational sector is able to educate and provide skilled professionals who are able to enter the sector and help it develop.

"We need to ensure that our educational systems and educational institutions continue to generate the right kind of graduates with the right qualifications for this demanding industry, so that we will continue to generate the best quality of jobs for all," he emphasised.

He also noted that the financial services sector is an example of how the country can be led through consensus politics, pointing towards how the laws regulating the sector were approved in parliament with the support of both sides of the house.