Latin American Developments

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Chile – The Association of Chilean Insurers recently reported that total premiums fell 12.3% when comparing the first half of 2009 to the first half of 2008.  Total premiums for general insurance fell 3.7% to US$ 1.031 billion for the period, while life premiums fell 16.5% to US$ 1.867 billion. 

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Read More Latin American Insurance and Reinsurance Update: Total Premiums Fall 12.3% in Chile; Life Insurance Premiums Grow by 25% in El Salvador, Peruvian Market Grows 20.2%; Puerto Rican Regulator Denies Plans to Liquidate First Medical

Region – A spokesman for Spanish banking group Santander reportedly stated recently that the company is considering selling its insurance units in Argentina, Chile and Mexico, though he reportedly also referred to the situation as “vague and imprecise.” …
Read More Latin American Insurance and Reinsurance Update: Market Growth in Mexico, Ecuador and Argentina; Puerto Rican Regulator Shutters Insolvent Insurer; Santander Considers Sale of Argentinean, Chilean and Mexican Insurance Units

Colombia – Swiss Re recently reported in its Sigma publication that the Colombian insurance market grew by 14.9% over the last year.  This growth was driven by the life insurance sector, which grew by 40.9% over the same period. …
Read More Latin American Insurance and Reinsurance Update: Market Growth in Colombia, Ecuador and Nicaragua; Solvency II Program in Colombia; Venezuelan Companies May Need to Seek Coverage from Foreign Reinsurers

Brazil – Eduardo Nakao, the CEO of IRB-Brasil Re, the government-controlled former reinsurance monopoly holder, recently acknowledged that the IRB’s reinsurance prices have hit a nine-year low and reportedly attributed the decline to increased competition from foreign reinsurance competitors. 

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Read More Latin American Insurance Update: Reinsurance Prices Down in Brazil? Costa Rican Bank Receives Authorization to Market Insurance Products on Behalf of Insurance Companies; Venezuelan Politician Questions Motives of Opponents of New Insurance Law

In order to comply with its free trade agreement with the United States, the Colombian legislature recently passed legislation revising various provisions of the nation’s insurance laws so as to allow certain cross-border insurance activities.  As of the date of this post, the legislation still awaits the President’s signature, at which point it will immediately enter into effect. …
Read More Colombia Revamps Cross-Border Insurance Regulations to Comply with Free Trade Agreement with the United States

Fitch Ratings recently issued its annual report on the Argentinean insurance market entitled “El mercado asegurador argentino: Resultados y perspectivas 2009.”  The report reflects significant turmoil in the market given the fluid political, economic and regulatory situation in Argentina. 

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Read More Argentina: Fitch Issues Mixed Annual Report on Insurance Market

Mapfre’s Latin American operation, Mapfre America, recently announced that its net profits increased 25.0% and its total premiums 20.3% when comparing the first half of 2009 to the first half of 2008.  Mapfre America’s net profits for the period totaled 64.4 million euros (US$ 91.9 million), while its premiums for Latin America totaled 2.03 billion euros (US$ 2.88 billion).  Mapfre America’s total premiums increased by 40.4% in the life sector (453 million euros/US$ 643 million) and 15.5% in the non-life sector (1.58 billion euros/US$ 2.24 billion). 

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Read More Latin American Insurance and Reinsurance Update: Premium Growth Results and Forecasts

According to a recent Accenture study, cross-border expansion into emerging markets is a major short-term priority for insurance companies based in both developed and developing nations. …
Read More Latin American Insurance Update: Expansion into Emerging Markets a Priority for Insurance Companies Despite Economic Crisis; Grupo Mundial Lays Out Plans for Costa Rica; Chilean Insurer Expands into Peru; Premium Growth in Guatemala and Venezuela

The First Circuit recently heard an appeal regarding a challenge to amendments to Puerto Rico’s Compulsory Motor Vehicle Liability Insurance Act, Law No. 253.  The law requires auto vehicle registrants, upon vehicle registration, to pay premiums for compulsory auto insurance through a Commonwealth-created association of private insurers in Puerto Rico. …
Read More First Circuit Remands Challenge to Puerto Rico’s Compulsory Auto Insurance Law Back to District Court, But with Little Chance of Success

Aseguradora Mundial, a Panamanian insurance company owned by regional conglomerate Grupo Mundial, recently became the first foreign company to receive preliminary authorization from Costa Rica’s interim insurance regulator, the Superintendency of Pensions, to offer insurance in the Central American country. …
Read More Panamanian Company Becomes First Foreign Insurer Authorized in Costa Rica