Insurers must make separate analysis for each insurance categories and when the results are deficient, they should have reserves.
Agreement 4 approved in April by the Superintendent of Insurance of Panama adds that when the results aredeficit for two consecutive years,"... in addition to the reserve an analysis must be submitted to the regulator of the causes of the deficiency and a plan to correct it. Once the category has positive results again, the reserve can be released and the company can make use of it."
Three insurers accounted for 46% of the $693 million in premiums sold in the local market during the first half of the year.
Assa Compañía de Seguros, Mapfre Panama and Internacional de Seguros (IS) are the three insurers that accounted for almost half of the premiums sold between January and June this year.Assa recorded premiums of $122 million, followed by Mapfre, with $102 million and IS, with $98 million.
Income from voluntary insurance premiums grew by 18% in relation to June 2015, reaching $490 million.
From a monthly report by the Superintendent of Insurance:
The evolution of compulsory insurance in respect to previous months is: 32% growth that corresponds to an increase of ¢38.6 billion colones in SOA, concentrated in January of this period as a result of a change in the accounting methodology, specifically, for the SOA period, premiums that were previously registered in December of each year were recorded in January 2016 of this year.RT premiums decreased by ¢15.6 billion colones.
A call has been made to participate in the auction of property located in Punta Paitilla, owned by the Venezuelan company Seguros Constitución, which was taken over in August 2015.
The Superintendency of Insurance in Panama reports that the auction will be held on June 15, with a base price of $3.4 million. The property to be auctioned is commercial premises number 5 on three storeys, located in the Plaza Paitilla Mall on Avenida Balboa, Calle 56-A, Punta Paitilla, town of San Francisco.
The $6.6 million in assets held by Seguros Constitución, which have been frozen since August 2015, are not sufficient to cover the company's liabilities, which total $26 million.
According to a report prepared by the board of liquidators on April 28, "... there are not enough liquid funds to begin the approved loan payments ", therefore they will proceed to pay according to the order of priority and resources available.
According to Fitch Ratings, pension insurance has become a problem in terms of technical profitability for the companies that sell them.
From a statement issued by Fitch Ratings:
Fitch Ratings - San Salvador - (April 28, 2016):
Pension insurance has become a challenge in terms of technical profitability for sellers, says Fitch Ratings. One of the benefits of the current pension system is protection against disability and pension insurance, contracted by the Pension Fund Administrators (AFP) for its members. This coverage is provided by insurers and covers the insured against accidents or diseases that would make it impossible for them to work. In addition it also covers beneficiaries when the insured person dies, providing the required additional capital to finance pensions.