SIGNAL SEES GAINS IN NON-LIFE, BUT LIFE PREMIUMS FALL

Germany-based insurer Signal Iduna has reported a 24.3% increase in net profit to 70m euro. Profit in property and liability business rose 44%, while profit in health insurance was up by 15%. The group attributed the increases to lower claims costs and lower expenditure on claims. The combined ratio was 97.4%. In life business profit was down by 36%, Signal attributed the deterioration to increased life expectancy and low interest rates. It was optimistic for 2005 in the life sector, forecasting premium income growth of 2.4% in life and annuity business. It based this on its view that Governmental cutbacks in pensions would force individuals to make personal arrangements.