Insurance Industry El Salvador: 'Solid Before the Storm'

Fitch Ratings highlights the liquidity of the insurance market in El Salvador for the first semester.

Friday, October 15, 2010


At the end of the first half of 2010, liquidity in the Salvadoran insurance market was far superior to that of other Central American countries, and even recorded an improvement over the end of the first half of 2009. Liquid assets in the market cover 1.9 times the total reserves (1.8 times jun.09), a rate much higher than the average in Central America (1.5 times).

The scenario is even more positive with respect to capitalization, as evidenced by the ratio of equity to assets (51.8%), more favorable than previous year (48.5%) and exceeds
widely the average of the region (36.7%). The reason for this, according to Fitch, is basically the regulatory requirements in the country and high levels of profit.

More on this topic

Insurance in El Salvador at the Closing of 2008

May 2009

Fitch Ratings highlighted a 26.5% growth in net results by the Salvadoran Insurance Sector as compared to 2007.

•Greater Earnings. The Salvadoran insurance industry recorded a 26.5% growth in its net results for 2007, resulting primarily from an increase in subscribed premiums coupled with a lower accident rate.

Guatemala: Insurance Industry Keeps Deteriorating

September 2009

"For the sector's improvement, it will be key to adjust fees for products with high accident rates, as well as more careful subscription"

By the end of June 2009, net premiums had grown at an inflation adjusted rate of 9.8%, although lower growth should be expected for the end of the year, due to worse economic performance.

Annual Nicaraguan Insurance Sector Report

April 2009

There was an improvement in accident rates and operating performance in the Nicaraguan insurance sector in 2008, as reported by Fitch in a special report.

Thanks to the growth in insurance premiums in the period and progress in costs and accident rates, the sector was able to overcome the operating loss that occurred last year (especially the state insurance company), registering a combined index of 96.3% in 2008 compared to 103.7% in 2007. The good operating performance has enabled the sector to more than offset the decrease in net financial income contribution (by private insurance companies in particular) and impact on the greater overall profitability. The expected decrease in the level of economic activity and thus in the sales of insurances implies a major challenge for the sector and for protection of the progress achieved in the short term. At the close of the previous year, net insurance premiums totaled C$2.1 million, 14.0% above the amount registered in 2007. The faster growth in the case of private insurance companies (17.1%) is worth noting, taking into account the significant growth in premiums of Metropolitana Life Insurance Company (35.1%) and Lafise Insurance (25.7%). For its part, the INISER (Nicaraguan Insurance Institute) experienced a growth of 8.6%. The positive growth of the sector has been primarily in the business of auto and life insurance.

El Salvador: Insurance Sector in the First Half of 2015

October 2015

In June 2015, the Salvadoran insurance industry recorded a growth rate of 4%, higher than the 2.4% increase recorded in the first half of 2014.

From a report by Fitch Ratings Central America:

Continuous growth: In June 2015, the insurance industry of El Salvador recorded a growth rate of 4% compared to the first half of 2014 (1S14), given a growth in the economy of 2.4%, according to central bank data.

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ACHANSA Corredores de Seguros

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Phone: (507) 399-3166 - (507) 203-9689

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