The establishment in 2009 of holding company Mapfre La Centroamericana, whose stock is owned 65% by Mapfre Mundial Holding, joined regional operations with Panamanian Aseguradora Mundial.
Since they already had their own business (Mapfre La Centroamericana), consolidation of operations involved the sale of Aseguradora Mundial S.A.- Personal Insurance, which had losses of $ 247,000 at the end of June 2010.
Other Aseguradora Mundial companies in the region will remain operating as part of the Mapfre La Centroamericana holding.
Sources: Fitch Central America and Elsalvador.com.
The insurance company Vivir, specializing in the health sector is to start operations in El Salvador.
The company, mostly funded by Dominican capital, has been authorized to sell insurance to people in the fields of life, health and personal accident.
An article in Elsalvador.com reports, "In September 2010, Aseguradora Mundial made an endorsement of share certificates and now 60% of the shares belong to the Vivir Insurance Company S.A. of Panama who hold the company's shares with ARS Humano who are based in the Dominican Republic.
The Spanish insurance group has requested authorization to change the name of Aseguradora Hondureña Mundial to ‘Seguros Mapfre Honduras’.
The Spanish group has completed the purchase process, which began in 2010, of shares held by Aseguradora Mundial in Panama and its subsidiaries in Nicaragua, Costa Rica, El Salvador, Guatemala and Honduras.
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.
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