Figures from the insurance industry show that recession had a significant impact on companies' sales and profits last year.
According to the Irish Insurance Federation's Factfile, total income from insurance premiums last year was €13.4 billion, down 26% from the €18.2 billion in 2007.
Income from life insurance premiums also dropped 26% last year, and the IIF said this trend had continued in the first six months of this year.
The value of funds managed by life assurance companies dropped by 22.5% last year to €63.5 billion, as the value of their stock market investments plunged by 42%. Due to the turmoil in stock markets, life assurance firms were investing a much bigger proportion - almost 30% - of funds in bonds by the end of last year.
Insurance companies' profit from non-life insurance - which includes motor insurance - fell by 79% to €228m last year. Premium income was down 7.7% to €3.3 billion, with motor insurance premiums down 11.7%.
Non-life profits showed an even bigger fall - 86.4% to €94m - when investment income was stripped out. The Factfile blamed an increase in claims for the lower profits, with the number of new claims rising 14% and the cost of these claims growing by 23% to €2.1 billion.
Motor insurance premiums began rising again last year for the first time since 2004. In the non-life segment, Hibernian led the way by premiums written, followed by FBD, Allianz and Quinn.
