Fitch Ratings highlights the liquidity of the insurance market in El Salvador for the first semester.
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.
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.
• Overestimation of production. The portfolio of net premiums totaled $439.2 million, an increase of 11.4% over 2007.
The new provisions for calculating Capital Adequacy Ratio will be coming into force in Panamanian banks on April 1.
Assets that under the current rules were weighted at 100%, with the change will be weighted at 125% and 150%.
The general manager of Equilibrium risk rating, Ernesto Bazán, stated in an article in Prensa.com: "This means that assets, as measured by their risk will be higher and, therefore, the capital adequacy ratio of the Panamanian banking system will be reduced globally. It is currently at 14.3% and it could drop to 13.8% or less with the change."
According to Banguat, the banking system has $614.5 million (Q4,747.6 million) in available liquid assets.
"We have insisted that the banks have enough liquidity to meet commitments; that is, they have extra reserves and liquid assets, but in the current situation, they can, as some global banks have done, maintain higher levels as a precautionary measure," the president of Banquat, Maria Antonieta de Bonilla, said.
The Panamanian Aseguradores Association (APADEA), is a non-profit organisation, that was created in 1952 with the objective of developing, enlarging and coordinating the activity of the insurance market throughout Panama.
Operates in Panama
Phone: (507) 225-4445