Guatemala Insurance Industry Prepares for Growth in 2011

Fitch Ratings highlighted in their report a “relatively stable” performance of the insurance industry in 2010.

Thursday, November 4, 2010

The performance of the Guatemalan insurance industry in 2010 has been relatively stable, despite the occurrence of two catastrophic events (storm "Agatha" and the eruption of the "Pacaya" volcano in late May) and the generally stagnant premiums of the main operating branch of the industry: Motor Vehicle Insurance. Thus, advances in operating costs, especially for claims incurred in the auto industry, despite the slowdown in premiums, reversed the operating deficit, but the industry still presents accident rates higher than the combined coverage average of the Central American region, which suggests the existence of future opportunities for improvement.

It is important to emphasize that although the aforementioned catastrophic events will impact the level of gross losses in the sector, adequate reinsurance protection available to the industry significantly offset these pressures, considering that in general, it is expected that the net effect on accident rate is moderate and in many cases related to the cost of reinstatement of reinsurance protections.

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Costa Rica: Outlook for the Insurance Market

April 2017

Fitch projects a growth close to 15% in premiums this year, in a context of economic stability and consolidation of strategies by insurers.

From a report by Fitch Ratings:

Strong growth in premiums: the Costa Rican insurance industry grew by 16% in terms of premiums written up to the close of 2016, the result of a reclassification in the financial figures of the state - owned company and the largest market participant, Instituto Nacional de Seguros (INS), which was influential in the growth of -9% in 2015. Excluding this reclassification, the sector's growth reached 9% at the end of 2016, which is still a favorable level, according to Fitch Ratings. Meanwhile, private equity insurers recorded premium growth of 35%, thanks to innovation in products and marketing channels.   

Insurance in Central America: Performance and Prospects

January 2012

A Fitch Special Report on the insurance industry in Central America indicates a stable outlook with conservative growth.


Insurance penetration remains stable.
Fitch estimates that at the end of 2011, premiums for the insurance sector in Central America will be U.S.

Insurers, the Volcano and the Storm

June 2010

Fitch Ratings analyzed how insurers will cope with Pacaya Volcano and Agatha tropical storm in Guatemala, Honduras and El Salvador.

On a preliminary basis, Fitch considers that the insurance industry in Guatemala, Honduras and El Salvador will not be significantly affected by the disasters triggered by Pacaya Volcano and Agatha tropical storm.

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.

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