Its president, Ricardo Cohen, explained that although the insurance industry is in a solid position, it won’t generate profits this year, mainly due to the lack of new investments or projects in the country.

“It is evident that there are no new buildings, commercial outlets nor industries. Additionally, auto sales plunged almost 40% last year”, he said.

Source: elsalvador.com

More on this topic

Insurance Market in El Salvador Not Taken Off

October 2013

In the last five years penetration of the insurance market did not reach even 2% of GDP because people see insurance as an unnecessary expense.

According to Richard Cohen, executive president of the Salvadoran Association of Insurance Companies (ASES), penetration of this market has the potential to grow up to four times in the next few years.

Insurance in Guatemala Up 7.3%

September 2013

During the first eight months of 2013 insurance market premiums generated $425 million, while in the same period of 2012 the figure was $396 million.

The data was supplied by the Guatemalan Association of Insurance Institutions (Agis), which states that 20% of the market is made up of premiums from life policies, 29% for accident and health and the remaining 51% belongs to damage.

Decline in Salvadoran Insurance Foreseen

April 2009

Insurers estimate that they could experience a growth of 5% or a decrease of 3% for 2009.

Against this backdrop, Salvadoran insurers plan to tackle the economic crisis by easing customer payments for the sales of net premiums so they will not fall into delinquency.

On the forecast for the industry, Peter Geoffry, secretary of the Salvadoran Association of Insurance Companies (ASES), told La Prensa Gráfica: "We think this 11.4% (growth for 2008) will not be very sustainable. We are obviously not talking about growth rates for 2009. We are predicting very slight decreases due to the situation in business generation this year."

Salvadoran Banking Profits Down 13%

March 2009

In 2008, banking generated $128.3 million in earnings, $19.7 million less than the $148 million generated in 2007.

The statistics reported by the Salvadoran Banking Association indicated that the Industrial Bank was the one that had the most earnings last year, but it suffered a drop of $10 million in profits.