Loss in excess of CZK 2bn for Czech health insurers in Q1 2010

2010-07-28

The total costs of health insurance companies in the first quarter 2010 exceeded their total revenues by more than CZK 2bn (€79.4m), whereas for the corresponding period of last year the loss was only CZK 820m (€32.6m). The total revenues from insurance premiums and paid-in penalties came to CZK 52.3bn (€2,077m) and the total costs were CZK 54.3bn (€2,157m).
The total loss forecast by the health insurance companies for 2010 is CZK 8.03bn (€319m), in comparison with the loss of CZK 16.8bn (€667.3m) reported in 2009.
Total insurance premiums, including those paid by the state, came to CZK 51.1bn (€2,030m), a year-on-year reduction of 0.55%, despite the fact that the monthly premiums paid by the state increased from CZK 677 (€27) to CZK 723 (€29) per person. There was a 4.2% reduction in written premiums in comparison with the corresponding period of 2009, to CZK 38.8bn (€1,541m). According to the Central Statistic Office this reduction was prompted by the higher unemployment rate and the lower incomes of policy holders, which directly affected insurance premiums.