The Insurance Sector in El Salvador

Fitch Central America Special Report: "Salvadoran Insurance Sector: Bi-annual Performance and Short Term Outlook."

Tuesday, October 7, 2008

The main highlight in the Salvadoran insurance sector is that 80% of the premiums are in the hands of international conglomerates, which creates stability and strength and has resulted in improvements in the solvency, liquidity and management ratios.
Unrestricted solvency and liquidity. The operational leverage and equity to asset ratios of the Salvadoran sector (1.1 times and 44.5% respectively) show a positive evolution regarding 2007 and were among the best in the region as of June 2008. On the other hand, the liquidity index was 1.7 the reserves (1.5 in June 2007), the highest in the region when compared to the 1.3 time for Honduras and 1.1 times for Guatemala and Nicaragua, which greatly explains the low proportion of investments in real estate and premiums receivables. Real estate...

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Insurance Industry El Salvador: 'Solid Before the Storm'

October 2010

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.

Guatemala: Insurance Industry Keeps Deteriorating

September 2009

"For the sector's improvement, it will be key to adjust fees for products with high accident rates, as well as more careful subscription"

By the end of June 2009, net premiums had grown at an inflation adjusted rate of 9.8%, although lower growth should be expected for the end of the year, due to worse economic performance.

Insurance in El Salvador at the Closing of 2008

May 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.

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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