Insurance company AIG Israel’s net profit in 2001 was NIS 2 million, compared with a loss of NIS 18.8 million in 2000, according to the company’s financial statements, published today. This is the first year in which AIG Israel made a profit, following heavy losses in its first four years of activity in Israel.
The non-life insurance operation generated a profit of NIS 5.2 million, compared with a loss of NIS 12.2 million in 2000. Gross premiums and fees in non-life insurance totaled NIS 213 million, 45% higher than in 2000. Last year, the company had revenues from an investment of NIS 11 in non-life insurance, a 54% increase partly attributable to the interest rate cut at the end of the year.
Auto insurance accounted for 81% of the company’s non-life insurance operations last year, generating a profit of NIS 4.7 million in property insurance, and a NIS 1.9 million loss in compulsory insurance. Apartment insurance yielded a profit of NIS 2.6 million. Personal accident insurance generated a profit of NIS 2.6 million, and other insurance types generated a loss of NIS 2.9 million.
The company lost NIS 3.4 million in life insurance, compared with a loss of NIS 5.5 million in 2000. Gross premiums in life insurance totaled NIS 5.5 million last year, compared with NIS 2.15 million in 2000.
AIG Israel is jointly owned in equal parts by US insurance concern AIG and the Aurec group.
Published by Israel's Business Arena on 8 April, 2002