The volume of total contributions to autonomous pension funds for EU Member States for which data are available, reached 84 bio euro in 2000, growing by 62% over the period 1997-2000. The total expenditure of these funds in the EU2 increased by 47% during the same period.
The number of insurance enterprises in the EU decreased by around 10% from 1996 to 2000, whereas the total gross premiums written increased by nearly 50% during the same period. This reflects the continuing concentration in the sector.
These figures come from the report Special Feature on Pension funds, published today by Eurostat, the Statistical Office of the European Communities in Luxembourg. The feature combines statistical information for both pension funds and insurance services. The publication covers the EU Member States, Norway, Iceland and Switzerland. The data refer to the reference years 1997 to 2000 for pension funds and 1996 to 2000 for the insurance market.
Pension funds: highest growth in contributions and expenditure in Spain
Pension funds aim to provide employees and self-employed persons with supplementary pension benefits in addition to compulsory social security. Faced with the ageing of the European population, pension funds are considered as one of the possible answers to the financial difficulties experienced by the welfare protection systems.
Over the period 1997-2000 and among the Member States for which data are available2, only two registered a decrease in the number of members of pension funds: Denmark (-10%) and Finland (-22%). The highest growths were observed in Spain (84%), Austria (60%) and Italy (58%).
Between 1997 and 2000, the volume of total contributions increased in all the countries for which data are available except in Finland (-54%), Denmark (-29%), Belgium (-12% between 1997 and 1999) and Austria (-4%). Spain (308%), Sweden (245%) and Italy (117%) experienced the largest increases. In 2000 the highest contributions in absolute terms were observed in the United Kingdom (32 billion euro), Germany (18 bn euro), Spain (15 bn euro) and the Netherlands (13 bn euro).
Total expenditure on pensions represents the 'raison d´Ãªtre' of complementary pension funds and thus, the main part of their expenditure. This increased in all the Member States for which data are available2 between 1997 and 2000 except in Denmark (-19%). Spain (597%), Sweden (329% between 1998 and 2000), Austria (140%) and Italy (125%) recorded the highest increases.
Investments increased by 20% in the EU from 1997 to 2000
The fundamental economic efficiency of pension funds comes from their ability to get the best returns on the contributions from members to pay benefits to retired persons, thus the importance of improving the performance and the security of their investments.
At EU2 level, the total amount of investments increased by around 20% between 1997 and 2000. Austria (160%), Italy (88%), Spain (80%) were the Member States which registered the highest growth of total investments. In 2000, the highest level of investment in absolute terms was found in the United Kingdom (1 028 bn euro) and the Netherlands (454 bn euro).
Life insurance gross premiums written: highest growth in Italy and United Kingdom
The number of insurance enterprises in the EU decreased by 10.5% from 1996 to 2000. In 2000 there were 3 495 enterprises, of which 56% were active in the non-life insurance sector, 25% active in life insurance enterprises and the remaining 19% active in specialist reinsurance enterprises and composite insurance enterprises.
Non-life insurance enterprises have been through the largest process of concentration, resulting in a decrease of 12.2% between 1996 and 2000. The biggest reductions were observed in Italy (-22.0%), Spain (-19.6%) and Denmark (-18.9%). Only in Ireland (12.3% between 1996 and 1999), Sweden (5.7%) and Luxembourg (4.3%) did the number of non-life insurance enterprises increase.
The number of life insurance enterprises registered a 7.
