Insurer Slovenská Poisťovňa lost 1.8 billion Sk in 1998

Slovenská Poisťovňa (SP), the biggest insurance company in Slovakia, posted a loss for the first time in its 29-year history in 1998. The company lost fully 1.8 billion Slovak crowns ($41 million), which it attributed to the need to write off provisions created against risky investments in the past.

SP management said it would be able to cover the loss from its basic capital without endangering the firm's solvency. SP's capital after deducting the loss would equal 1.27 billion crowns, while its share assets would remain unchanged at 1.5 billion crowns.

SP's biggest cost item last year was the creation of 10.5 billion crowns in technical reserves and 8.5 billion crowns of indemnity. The SP had to clear provisions and reserves for financial investments totaling 3.6 billion crowns into costs in 1998 because it had in the past engaged in disadvantageous entrepreneurial activities and entered into highly disadvantageous contracts. These provisions pertained in particular to securities, provided advance payments, loans, and property.

The SP has technical reserves of nearly 25 billion crowns for its obligations stemming from its insurance contracts. Of this sum, life insurance makes up 20.3 billion crowns. Nearly half of these funds are placed as time deposits and liquid securities.

SP held a 59% share of the Slovak insurance market in 1998 with 12.5 billion crowns in collected premiums in 1998. SP's total revenues came to 29.4 billion crowns last year, up 23% from 1997.

The majority owner of the SP is the National Property Fund (FNM-national privatization agency) holding 51% of shares.

Top stories

News digest: Ministry comes up with a plan to ease measures

Coalition to discuss longer lockdown. Slovakia lags behind in administering booster shots. Nearly half of Slovaks perceive the tax and levy reform negatively.

4 h
Igor Matovic

PM’s calls for “respect” are ignored by his own colleagues

Finance minister proposes massive handout without consulting PM.

8 h
Car poduction in Kia Slovakai in Teplička Nad Váhom

Automotive industry faces the biggest transformation in its history

Slovakia remains the world’s biggest car manufacturer per 1000 inhabitants.

12 h
Skryť Close ad