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Market data


All Business 12 months to September


Year-End 2015 2016 2017   2018 2019
Gross Written Premium ($) 5,260,803,452 5,345,220,23 5,727,157,999   6,320,894,581 6,820,298,460
Net Written Premium ($) 3,880,463,935 3,425,022,923 3,975,655,149   4,273,100,623 4,600,036,897
Net Earned Premium ($) 3,895,768,305 3,366,482,641 3,784,224,340   4,049,633,966 4,410,796,801
Net Claims Incurred ($) 2,546,016,620 1,968,592,517 2,710,849,427   2,412,636,982 2,300,034,410
Loss Ratio (%) 65.35% 58.48% 71.64%   59.58% 52.15%
Business Costs (Staff etc) ($) 1,367,165,689 1,186,539,400 1,236,198,791   1,242,779,943 1,325,061,078
Combined Ratio (%) 100.45% 93.72% 104.30%   90.27% 82.19%

Commercial Material Damage and Business Interruption 12 months to September


Year-End 2015 2016 2017 2018 2019
Gross Written Premium ($) 687,192,670 680,630,993 720,886,662 821,348,477 923,276,042
Net Written Premium ($) 346,431,648 357,611,986 375,638,036 439,060,052 504,556,262
Net Earned Premium ($) 369,677,595 360,357,963 365,001,083 392,999,915 456,514,539
Net Claims Incurred ($) 208,771,487 243,994,226 266,340,393 279,983,629 239,015,033
Loss Ratio (%) 56.47% 67.71% 72.97% 71.24% 52.36%

Domestic Buildings and Contents 12 months to September


Year-End 2015 2016 2017 2018 2019
Gross Written Premium ($) 1,522,053,535 1,560,818,092 1,653,980,584 1,785,251,411 1,864,492,475
Net Written Premium ($) 1,210,698,365 1,149,372,792 1,248,972,005 1,254,418,489 1,273,910,939
Net Earned Premium ($) 1,186,680,158 1,129,099,427 1,201,103,163 1,208,555,478 1,248,907,489
Net Claims Incurred ($) 634,005,780 624,059,237 716,800,290 703,854,646 609,379,099
Loss Ratio (%) 53.43% 55.27% 59.68% 58.24% 48.79%

Motor Commercial and Private 12 months to September


Year-End 2015 2016 2017 2018 2019
Gross Written Premium ($) 1,564,349,422 1,644,119,117 1,833,142,184 2,089,081,449 2,246,287,211
Net Written Premium ($) 1,477,793,120 1,422,592,371 1,568,885,993 1,664,815,382 1,733,682,657
Net Earned Premium ($) 1,444,274,566 1,377,217,656 1,475,665,889 1,564,914,747 1,671,167,121
Net Claims Incurred ($) 1,003,957,760 1,023,576,910 1,132,804,218 1,139,574,076 1,159,798,847
Loss Ratio (%) 69.51% 74.32% 76.77% 72.82% 69.40%

Marine Hull and Cargo 12 months to September


Year-End 2015 2016 2017 2018 2019
           
Gross Written Premium ($) 137,394,192 126,516,762 134,650,106 136,255,756 149,260,058
Net Written Premium ($) 107,813,364 93,028,019 101,443,977 97,977,744 105,442,174
Net Earned Premium ($) 108,805,543 92,816,802 99,540,458 98,062,171 376,198,764
Claims Incurred ($) 54,977,363 62,428,514 59,343,187 62,979,376 59,094,113
Loss Ratio (%) 50.53% 67.26% 59.62% 64.22% 58.96%

Liability Professional & Defamation, Directors & Officers and Public Product & Other 12 months to September


Year-End 2015 2016 2017 2018 2019
Gross Written Premium ($) 468,311,462 481,262,837 521,877,213 553,667,536 614,601,218
Net Written Premium ($) 338,478,576 330,448,687 358,875,086 366,211,203 403,593,216
Net Earned Premium ($) 339,225,156 320,109,298 343,539,963 356,371,538 376,198,764
Net Claims Incurred ($) 78,081,999 112,861,384 100,322,242 114,795,055 147,256,363
Loss Ratio (%) 23.02% 35.26% 29.20.% 32.21% 39.14%

Earthquake Domestic, Commercial M.D., Business Interruption and Marine Cargo 12 months to September


Year-End 2015 2016   2017 2018 2019
Gross Written Premium ($) 560,528,347 513,288,251   554,701,233 621,395,116 712,986,291
Net Written Premium ($) 226,368,484 -81,596,028   177,202,600 287,214,134 341,415,779
Net Earned Premium ($) 261,986,321 -73,258,527   157,686,791 275,669,622 325,014,849
Net Claims Incurred ($) 457,937,219 -204,420,440   363,309,158 40,281,584 -37,340,918
Loss Ratio (%) 174.79% 279.04%   230.40% 14.61% -11.49%

Other Personal Accident, Travel, Livestock and Other 12 months to September


Year-End 2015 2016 2017 2018 2019
Gross Written Premium ($) 320,973,824 338,584,183 307,920,017 313,894,836 309,395,165
Net Written Premium ($) 172,880,378 153,565,096 144,637,452 163,403,619 237,435,870
Net Earned Premium ($) 185,118,966 160,140,022 141,686,993 153,060,495 232,773,395
Net Claims Incurred ($) 108,285,012 106,092,686 71,929,939 71,168,616 122,831,873
Loss Ratio (%) 58.49% 66.25% 50.77% 46.50% 52.77%

Gross Written Premiums of Business Classes 12 months to September


Year-End 2015 2016 2017 2018 2019
Commercial ($) 687,192,670 680,630,993 720,886,662 821,348,477 923,276,042
Domestic ($) 1,522,053,535 1,560,818,092 1,653,980,584 1,785,251,411 1,864,492,475
Motor ($) 1,564,349,422 1,644,119,117 1,833,142,184 2,089,081,449 2,246,287,211
Marine ($) 137,394,192 126,516,762 134,650,106 136,255,756 149,260,058
Liability ($) 468,311,462 481,262,837 521,877,213 553,667,536 614,601,218
Earthquake ($) 560,528,347 513,288,251 554,701,233 621,395,116 712,986,291
Other ($) 320,973,824 338,584,183 307,920,017 313,894,836 309,395,165
Total ($) 5,260,803,452 5,345,220,235 5,727,157,999 6,320,894,581 6,820,298,460


Premiums


Gross written premium is calculated as the actual premium less all premium refunds and rebates. Premiums are recorded gross (ie no deduction for commissions and brokerage incurred in writing the income). Inclusions:

  • inward treaty and facultative reinsurance
  • all policy administration fees related to instalment billing and any other policy charges related to the writing and/or renewal of the policy.

Exclusions:

  • GST, FSL, and EQC charges.

Gross earned premium is gross written premium plus unearned gross premium at the beginning of the quarter less unearned gross premium at the end of the quarter.

Net written premium is gross written premium less outward treaty and facultative reinsurance premium.

Net earned premium is net written premium plus unearned net premium at the beginning of the quarter less unearned net premium at the end of the quarter.


Class of Business


Total includes the total for All Commercial Lines and All Personal Lines

All Commercial Lines includes Commercial Business Interruption, Commercial Material Damage, Commercial Motor, Earthquake: Business Interruption, Earthquake: Commercial Material Damage, Earthquake: Marine Cargo, Liability: Total, Livestock, Marine Cargo, Marine Hull: Commercial, and Other Business.

All Personal Lines includes Domestic Buildings and Contents, Earthquake: Domestic, Marine Hull: Private, Personal Accident, Travel and Private Motor.

Commercial Business Interruption excludes Company Earthquake.

Commercial Material Damage includes Fire, Material Damage, Industrial/Commercial Special Risks, Contractors' All Risks, Rural Risks (other than rural dwellings and their contents) and Office Policy, but excludes Company Earthquake.

Commercial Motor

Domestic Buildings and Domestic Contents includes rural dwellings but exclude earthquake.

Earthquake: Other includes all Earthquake business not included elsewhere.

Earthquake: Total includes Earthquake: Business Interruption, Earthquake: Commercial MD, Earthquake: Domestic and Earthquake: Other.

As far as possible all premiums relating to earthquake cover and all claims arising from earthquakes are to be recorded under one of the Earthquake categories.

Liability: Total includes all liability lines of business (Directors & Officers; Professional & Defamation; Public& Product; Statutory & Employer; Fidelity; Employment Practice; Bailee and Other)

Livestock excludes Bloodstock (see Other Business).

Marine Cargo excludes Company Earthquake.

Marine Hull: Total both Marine Hull lines of business (Commercial; Private).

Other Business includes Consumer Credit, Commercial/Trade Export Credit, Bonds, Mortgage Guarantee, Bloodstock, Computers, Engineering and all other business not included elsewhere.

Personal Accident

Personal Motor

Travel: Total includes all travel business.


Claims


Total number of claims is the total number of claims reported during the quarter.

Gross claims incurred include :

  • gross claims paid plus outstanding and IBNR claims at end of quarter less outstanding and IBNR claims at beginning of quarter;
  • all third party costs incurred in connection with claims (eg legal fees, assessors fees, claims adjustors fees etc);
  • indirect claims handling costs (ie internal costs incurred in processing and settling claims);
  • recoveries received and owing from third parties on all claims incurred.

Net claims incurred are gross incurred claims less all reinsurance claim recoveries related to those gross incurred claims.


Expenses


Staff costs

Include all payments and accruals for salaries for full-time equivalent staff, including contractors, and costs of all staff benefits and FBT. (Full-time equivalent staff = staff engaged for thirty hours or more per week).

Other costs; Include all other expenses charged against the New Zealand operation. Do not include staff costs, indirect claims handling costs and internal legal and assessors costs etc, as these are included in staff costs and claims incurred (discussed above). Internal claims settlement costs (transferred) include only the amount attributed to the claim.

Internal claims settlement costs

Shown as a credit the total amount of indirect claims handling costs incurred that have been transferred to the cost of claims above. This includes the proportion of staff and other costs related to indirect claims handling costs that under FRS 35 are included in the claims figures above.

Commissions

Net commissions and brokerage incurred (ie gross commissions/brokerage incurred in acquiring business less commissions recovered from treaty and facultative reinsurance arrangements.)

Note:

  • All definitions follow the FRS 35 definitions.
  • Accident Insurance Business (ie Workers Compensation) is NOT included in the data for this report.

Formula


Frequency per $1000 premium Total Number of Claims
Gross written Premium / 1000
Gross average claim size Gross claims incurred
Total number of claims
Gross loss ratio Gross claims incurred
Gross earned premium
Net average claim size Gross earned premium
Net claims incurred
Net loss ratio Net claims incurred
Net earned premium
Expense ratio Total management costs
Total net earned premium
Combined ratio Total net claims incurred + Total management costs
Total net earned premium
(where total management costs = staff costs + other costs + internal claims settlement costs + commission/brokerage costs)
Proportion of business retained Net written premium
Gross written premium
Proportion of claims cost recovered 1 - Net claims incurred
Gross claims incurred
Frequency  
Quarterly equals includes total figures for the entire quarter
Yearly equals includes total figures for the entire year or rolling twelve month figures, except where the full year's data is incomplete. Then figures are estimated, where Yearly equals (Q1+Q2+Q3+Q4)/n*4, where n is the number of quarters for which a company submitted data.

Natural disaster data

Data on the cost of severe weather events and other natural disasters can be found under Natural disasters or by clicking here.