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Annual Enterprise Survey: 2011 financial year (provisional)
Embargoed until 10:45am  –  31 August 2012
Commentary

The Annual Enterprise Survey (AES) is Statistics NZ’s most comprehensive source of financial statistics. For information on what the survey measures and where the data is collected from, see the 'Definitions' section.

Total income and expenditure rebound in the 2011 financial year

Total income for all industries increased 4.7 percent to $575,386 million in the 2011 financial year. This followed a 4.2 percent decrease in the previous financial year.

Of the 16 broad industry groups, 13 had increased income. The three largest increases in total income were recorded by:

  • manufacturing, up $7,628 million (8.6 percent), due to increased sales of other goods and services
  • agriculture, forestry, and fishing, up $4,077 million (14 percent), also due to increased sales of goods and services
  • public administration and safety, up $4,065 million (11.2 percent), due mainly to an increase in non-operating income.

  The three broad industry groups with decreased total income were:

  • financial and insurance services, down $1,388 million (2.2 percent), due mainly to a decrease in interest and dividends received
  • rental, hiring, and real estate services, down $659 million (3.2 percent), due to fewer sales of goods and services
  • arts, recreation, and other services, down $106 million (0.8 percent), due mainly to a drop in non-operating income.

 Total expenditure for all industries increased 7.0 percent to $533,318 million.

Of the 16 broad industry groups, 15 reported increased expenditure. The two largest increases in total expenditure were recorded by:

  • public administration and safety, up $9,334 million (30.0 percent), due to increased purchases and other operating expenses (mainly related to Christchurch earthquake damage)
  • manufacturing, up $8,360 million (9.9 percent), due to increased other purchases and operating expenses.

Only one broad industry group had decreased expenditure. Rental, hiring, and real estate services fell $219 million (1.3 percent), due to a drop in interest payments and a drop in purchases and other operating expenses. 

Graph, Change in total income and expenditure by industry group, change from the previous financial year, 2011 financial year.

Surplus before income tax, which is total income less total expenditure (plus/minus change in stocks), was $44,396 million across all industries. This is a decrease of $5,995 million (11.9 percent) from the previous financial year. The decrease was mainly due to a $29,834 million (9.3 percent) increase in purchases and other operating expenses. This more than offset the total income increase of $25,639 million (4.7 percent).

The largest surplus decrease in the 2011 financial year was in the public administration and safety industry group, down $5,282 million. This was mainly due to an $8,567 million increase in purchases and other operating expenses, caused by an increase in the Earthquake Commission's claims liability after the 2010/11 Christchurch earthquakes.

Salaries and wages paid to employees across all industries increased $3,459 million (3.9 percent) in the 2011 financial year. This compared with a 0.4 percent increase in the 2010 financial year.

The total value of fixed assets increased 2.6 percent, to $521,407 million. In the previous financial year it increased 3.4 percent. 

Insurance industry moves into deficit in 2011

The insurance industry has been significantly affected by the 2010/11 Canterbury and Christchurch earthquakes.

The financial impact of these earthquakes can be seen in the health and general insurance industry. This industry had a surplus of $134 million in the 2009 financial year, which grew to $429 million in the 2010 financial year. However, in the 2011 financial year it dropped to a deficit of $2,172 million, due to purchases and other operating expenses increasing $2,571 million (82.8 percent). Specifically, this increase was caused by the very large net claims expense incurred by insurance companies as a result of widespread earthquake damage to property. Net claims expense equals claims from customers less reinsurance recoveries received by the insurance company.

Graph, Health and general insurance industry income, expenditure, and surplus, 2009 to 2011 financial years.

The earthquakes have also affected the financial position of the health and general insurance industry, with both current assets and current liabilities increasing by large amounts. Current assets increased $10,894 million (230.8 percent), due to increased reinsurance and other recoveries. Current liabilities increased $10,653 million (277.9 percent), due to the increase in claims liability resulting from the earthquakes.

The insurance industry and the central government administration industry (which includes the Earthquake Commission) both showed changes in financial performance and position, which can be attributed to the earthquakes. We expect other industries to show financial movements related to these earthquakes in the future.

For more detailed data, see the Excel tables in the ‘Downloads’ box.

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