Business indicators in monetary intermediation, insurance and pension funding

Data on structural business statistics indicators are used to assess the financial situation, number of employees and other indicators of enterprises of the sectors of monetary intermediation, insurance and pension funding.

Definitions

Purchase of fixed assets (land, buildings, costs of unfinished construction, equipment and machinery, etc. with the term of exploitation of more than one year).

Surplus generated by economic activities after the labour factor input has been recompensed.

It is the balance available to the enterprise which allows it to recompense the providers of own investment and repay debts, to pay taxes and eventually to finance all or a part of its investment.

According to Statistical Classification of Economic Activities (NACE Rev. 2) the following fields are included:

According to the Statistical Classification of Economic Activities (NACE Rev. 2), the following fields are included:

Total remuneration in cash or in kind which employer pays to an employee as a reward for the work done.

Personnel costs also include employer's social security contributions.

Employees working on the basis of work or enterprise agreement both at main job, and at secondary job, including self-employed natural persons, employers, working family members and persons engaged in entrepreneurship and not employing others.

For the statistics on insurance and reinsurance activities (NACE Rev. 2 65.1 and 65.2), the production value is defined as gross premiums earned plus total portfolio investment income plus other services produced minus gross claims incurred, excluding claims management expenses plus capital gains and provisions.

For the statistics on pension funding (NACE Rev. 2 65.3), the production value is defined as turnover less insurance premiums payable plus investment income plus other income plus insurance claims receivable less total expenditure on pensions less net change in technical provisions.
 

For the statistics on central banking (NACE Rev. 2 64.11), the production value is defined as interest receivable and similar income less interest payable and similar charges plus commissions receivable plus income from shares and other variable-yield securities plus net profit or net loss on financial operations plus other operating income.

For the statistics on other monetary intermediation (NACE Rev. 2 64.19), the production value is defined as interest receivable and similar income less interest payable and similar charges plus commissions receivable plus income from shares and other variable-yield securities plus net profit or net loss on financial operations plus other operating income.
 

For the statistics on insurance service activities (NACE Rev. 2 65.1 and 65.2), the corresponding title of this characteristic is ‘Gross premiums written’. This characteristic is defined in Article 35 of Directive 91/674/EEC. For the layout of the profit and loss account (technical account): Article 34, I. 1(a) of Directive 91/674/EEC for non-life insurance business and Article 34, II. 1(a) of Directive 91/674/EEC for life insurance business.

For the statistics on pension funding (NACE Rev. 2 65.3), the corresponding title of this characteristic is ‘Total pension contributions’. This characteristic shall comprise all pension contributions, due during the financial year, in respect of pension contracts, such as all mandatory contributions, other regular contributions, voluntary additional contributions, incoming transfers, other contributions.
 

For the statistics on insurance and reinsurance activities (NACE Rev. 2 65.1 and 65.2), the value added at factor costs is defined as production value minus gross value of reinsurance services received minus commissions minus other external expenditure on goods and services.

For the statistics on pension funding (NACE Rev. 2 65.3), the value added at factor costs is defined as production value less total purchases of goods and services.
 

For the statistics on central banking (NACE Rev. 2 64.11) and other monetary intermediation (NACE Rev. 2 64.19), the value added at factor costs is defined as production value less total purchases of goods and services.

Data availability

Dissemination format and Release calendar

Classifications

Data are classified and published using Statistical Classification of Economic Activities in the European Community (NACE Rev. 2).


A Classification Catalogue with classification codes and their explanations has been published on the CSB website.

Data collection

Source data

The survey includes data of the Bank of Latvia and the Financial and Capital Market Commission (FCMC).

Statistical population

All economically active enterprises operating in the sectors of Monetary Intermediation and Insurance and Pension Funding.

Statistical processing

Calculation methods

The indicators are calculated by using the information provided by the Bank of Latvia and the Financial and Capital Market Commission (FCMC).

 

Turnover

For the statistics on insurance and reinsurance activities (NACE Rev. 2 65.1 and 65.2), ‘Gross premiums written’ is calculated as follows:

gross direct premiums written;

+ gross reinsurance premiums accepted, written premiums. 

 

For the statistics on pension funding activities (NACE Rev. 2 65.3), ‘Turnover’ (total pension contributions) is calculated as follows:

pension contributions receivable from members;

+ pension contributions receivable from employers;

+ incoming transfers;

+ other pension contributions;

or:

pension contributions to defined benefit schemes;

+ pension contributions to defined contribution schemes;

+ pension contributions to hybrid schemes.

 

Production value

For the statistics on other monetary intermediation (NACE Rev. 2 64.19), ‘Production value’ is calculated as follows:

interest receivable and similar income;

- interest payable and similar charges;

+ commissions receivable;

+ income from shares and other variable-yield securities;

+ net profit or net loss on financial operations;

+ other operating income.

 

For the statistics on insurance and reinsurance activities (NACE Rev. 2 65.1 and 65.2), ‘Production value’ is calculated as follows:

For life insurance:

gross premiums written;

+ gross change in the provision for unearned premiums;

+ investment income;

- value readjustments on investments;

- gains on the realisation on investments;

- income from participating interests;

+ [(total gross technical provision – total net technical provisions)/ total net technical provisions) × (investment income – value readjustments on investments – gains on the realisation of investments – income from participating interests);

+ other technical income, net amount;

+ other income;

- gross claims payments;

- gross change in the provision for outstanding claims;

+ external and internal claims management expenses;

+ gains on the realisation on investments;

+ unrealised gains on investments;

- losses on the realisation on investments;

- unrealised losses on investments;

- gross change in life insurance provision;

- bonuses and rebates, net amount;

- change in fund for future appropriations;

- net changes in other technical provisions, not shown under other headings.

 

For non-life insurance and reinsurance:

gross premiums written;

+ gross change in the provision for unearned premiums;

+ investment income;

- value readjustments on investments;

- gains on the realisation on investments;

- income from participating interests;

+ [(total gross technical provision – total net technical provisions)/ total net technical provisions) × (investment income – value readjustments on investments – gains on the realisation of investments – income from participating interests);

+ other technical income, net amount;

+ other income;

- gross claims payments;

- gross change in the provision for outstanding claims;

+ external and internal claims management expenses;

+ gains on the realisation on investments;

- losses on the realisation on investments;

- bonuses and rebates, net amount;

- change in the equalisation provision;

- net changes in other technical provisions, not shown under other headings.

 

For the statistics on pension funding activities (NACE Rev. 2 65.3), ‘Production value’ is calculated as follows:

turnover;

- insurance premiums payable;

+ investment income;

+ other income;

+ insurance claims receivable;

- total expenditure on pensions;

- net change in technical provisions.

Value added is the margin between production value and total purchase of goods and services.

Total purchase of goods and services

For statistics on other monetary intermediation (NACE Rev. 2 64.19), the total purchases of goods and services is defined as commissions payable plus other administrative expenses plus other operating charges.

For statistics on insurance and reinsurance activities (NACE Rev. 2 65.1 and 65.2), the total purchases of goods and services is defined as the gross value of reinsurance services received plus total of commissions as referred to in Article 64 of Council Directive 91/674 plus any other external expense on goods and services (excluding personnel costs).

Personnel costs are calculated as follows: wages and salaries + social insurance costs.

Gross investment in tangible goods is gross capital investment in purchase of land, gross capital investment in existing buildings and constructions, gross capital investment in construction and reconstruction of buildings and gross capital investment in equipment and appliances.

Number of persons employed is expressed as an average annual indicator.

Data revision

Published data, if they are not marked as provisional, are final and are not reviewed, excluding cases when significant mistakes are found in enterprise reports.

Comparability

Comparability over time

Data on business indicators in the sectors of financial and insurance activities are available from 2013.

International comparability

Eurostat

Structural business statistics indicators for the EU member states are published on Eurostat homepage–section: Data/ Database/ Industry, trade and services/ Structural Business Statistics (sbs).
http://ec.europa.eu/eurostat

Confidentiality

Confidentiality of the information provided by respondents is protected by the Section 17 of the Statistics Law stipulating rights and obligations of the Central Statistical Bureau of Latvia and other state authorities producing official statistics. Read more

Contact person on methodology

Vārds Uzvārds Telefona numurs Amats E-pasts
Ilona Kallione 67366893 daļas vadītājs Ilona.Kallione@csb.gov.lv

Last update

11.07.2016.

Explanation of symbols

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Magnitude zero

0

Less than half of the unit employed

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Data not available or too uncertain for presentation

X

Figure not applicable because column heading and stub line make entry impossible, absurd or meaningless

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Data not released for confidentiality reasons

If data are absolute numbers

0

Magnitude zero