The Guatemalan insurance association reports that at the end of the year premiums totaled $926 million, 8% more than in 2016.
According to a report presented by the Guatemalan Association of Insurance Institutions, the growth of 7.7% was below the 9% that had been foreseen for 2017.It should be noted that medical insurance exceeded expectations, growing above 10%.
The insurers' association has reported a 9% increase in premiums generated in September this year.
Enrique Murillo, executive director of the Guatemalan Association of Insurance Institutions (AGIS), told Elperiodico.com.gt that"... the total premiums generated in September 2017 is $708 million, while up to the same month last year the figure was $640 million."
The segment of medical expenses policies registered the largest increase, up 26% over the previous year.
The Guatemalan Association of Insurance Institutions (AGIS) is looking to give greater impetus to reinsurance this year, as currently only one third of the total premiums are ceded to reinsurers.
Salvador Leiva, president of the AGIS told Elperiodico.com.gt that "...
Fitch Ratings expects moderate growth in premiums in Costa Rica, increased interest in personal insurance in Guatemala, and stable performance in Nicaragua and Honduras.
From the report "Outlook 2015: Central American Insurance Sector":
Costa Rica:
Moderate growth in premiums
Since the Costa Rican insurance industry opened up to private competition in 2008, the market has experienced rapid and consistent growth in premiums.
Fitch estimates that premiums in the region should grow measuredly, with the greatest dynamism seen in Costa Rica, the second insurance market in the region.
A statement from Fitch Ratings reads:
Fitch Publishes 2013 Prospects for the Insurance Sector in Central America.
The outlook on the ratings of insurance companies in different markets of Central America will remain stable in 2013.
Guatemala has authorized the marketing of new insurances, including unemployment and terminal illness cover.
With authorization from the Superintendency of Banks (SIB) unemployment insurance will be available in the short term.
This type of insurance allows the unemployed to receive an income for a specified time.
"Enrique Murillo, executive director of the Guatemalan Association of Insurance Institutions (AGIS), explained that this type of product is offered with different plans that can pay an amount to the person insured for a period of time that they are out of work", reported Cnn.com.gt
Grupo Assa de Panamá plans to complete its presence in Central America by opening operations in Honduras and Guatemala.
Panama's Grupo Assa is currently doing business in Panama, Costa Rica, Nicaragua and El Salvador, and has recently, entered the insurance market in Colombia with 40% stake in Cardinal Seguros.
The group now plans to invest in Guatemala and Honduras, while studying further expansion in South America, aiming to become a multinational insurance group said the director, Stanley Motta, to Larepublica.co.
A report by Fitch notes the momentum in the insurance sector in Central America and its growth potential.
From the report by Fitch Central America is entitled "Performance of Insurance Industry Central America: Well Positioned for Growth ":
The insurance industry in Central America managed to increase premium production by 12% compared to 2010, where Panama, Guatemala and Honduras recorded an above-average growth.
Three international insurers, BUPA Latinamerica, BMI Companies and Best Doctors Insurance Limited are organizing their entry into the health insurance market in Guatemala.
Best Doctors Insurance Limited has agreements with Agromercantil Seguros SA, a local insurer to offer personal and business insurance. The formalization of their entry into the market is Wednesday, May 2nd.
The State of Guatemala will insure 9 hydroelectric stations and 65 transmission substations, paying the most expensive annual insurance bill in the local market.
The National Institute of Electrification (INDE) awarded a policy of Q37, 8million ($4.86 million) to Aseguradora Rural to insure against all risks and terrorism, 9 hydro and 65 transmission substations, which are some of the most valuable pieces of public infrastructure in the country.
With the entry of the US firm BMI, Guatemalans now have a new health insurance option available in the country.
The Superintendency of Banks (SB) has authorized a change in the corporate name of the company, which was registered in the country as the BMI Insurance Company of Guatemala, Sociedad Anonima.
Once the process in the SB has been finalised, the Monetary Board must then authorize the changes.
Best Meridian Insurance Company (BMI) has entered the market by acquiring the license to operate from Aseguradora Mundial-Colectivos Empresariales.
BMI, is a company dedicated to the health, life, disability and financial services insurance and has a $7 billion portfolio of over 200 thousand customers.
"MPF Central America, former owner of Aseguradora Mundial, explained that the sale transaction relates only to the operating license because the insurance portfolio, assets and liabilities were transferred to MAPFRE Insurance Guatemala, SA", noted an article in Elperiodico.com.gt
The profits reported by insurers in 2010 were $ 32.7 million, 11.4% higher than 2009.
The information comes from data from the Superintendence of Banks and also states that in 2009 profits reported a 22.6% growth compared to 2008.
"The report submitted to Congress by the head of SIB, Victor Mancilla, explains that the return on capital invested by insurance companies increased from 17.4% in 2008 to 18.1% last year.