Seventy-six percent of the capital stock of Adisa Costa Rica, hitherto owned by Istmo Compañía de Reaseguros, has been purchased by Compañía Internacional de Seguros.
The remaining 24% of the shares of the company Aseguradora del Istmo S.A. remains in the hands of the Costa Rican cooperative Coopenae.
Istmo Compañía de Reaseguros, which until recently owned 76% of the shares of Adisa Costa Rica, wastaken over by the Superintendency of Insurance of Panamain December last year for not having the required assets, among other breaches.
The Superintendency has taken administrative and operational control of Aseguradora del Istmo S.A., due to a number of deficiencies identified in the operation of the company.
From an announcement by the Superintendency of Insurance and Reinsurance:
The Superintendency of Insurance and Reinsurance of Panama, through Resolution No.
HPC Contratas P & V will not finish the construction of public markets and supply stores in La Chorrera, and the bond company will have to hire another company or pay the performance bond.
After three years of cessation of work by the contractor due to liquidity problems in the consortium HPC Contratas P & V, the state run Mercado Nacional de la Cadena de Frío decided to terminate the contract.
The reduction of 30% in premium income from compulsory work risk insurance accounted for most of the 8% decline in revenues from total premiums up to March.
In March general insurance and personal insurance maintained the upward trend that had been seen the previous months, with growth rates compared to the same month in 2014 of 6.1% and 8.3%, respectively.
The state run Nacional de Seguros and PanAmerican Life share 88% of the market in the segment of accident and health policies.
The segment for Accident and Health policies showed that up to March 2014 the majority market share was held by Instituto Nacional de Seguros (INS) with 46.4% and 41.7% was held by Pan American Life, according to the Superintendent of Insurance (SUGESE).
In the last interannual period personal insurance increased by 11%, general by 5% and compulsory by 9%.
From a bulletin on the Insurance Sector in November 2013 by the Superintendency of Insurance:
BASIC INDICATORS
The total amount of direct premiums collected reached c436,3 billion in November 2013. The involvement of voluntary insurance equaled the average of the last four annual periods - Nov 20l0-Nov 20l3), 73%.
After five years of monopolization, there are 13 insurers, 17 brokers companies, 63 agency companies and 49 auto insurance operators competing in the Costa Rican insurance market.
Nacion.com reports: "Also noteworthy is the 442 products registered up to June this year, surpassing the 159 registered in the same month in 2010."
At the end of the first half of 2013, the Instituto Nacional de Seguros led the market with 89.7%, followed by Assa with 3.2% , Pan American Life with 2.9%, Mapfre with 1.6% and Adisa with 1.4%.
Pan American Life and Assa accumulate 6% of the market, reporting up to May 2013 accumulated income of $12 million.
According to the Superintendent of Insurance (SUG) these two companies have the largest reported income. "Other market participants with significant shareholdings are Mapfre Seguros with revenues of $7 million and Aseguradora del Istmo with $4.5 million," noted an article in Elfinancierocr.com.
Three years since the privatisation of the insurance sector, the state agency (INS) remains the main entity in the market.
The market dominance of the National Insurance Institute (INS), with 94% of total premium income, is, in the opinion of the Association of Private Insurance (AAP), a result of the supervision exercised by the Superintendency of Insurance (Sugese).
In the newly privatised insurance market, companies are competing with the National Insurance Institute (INS in Spanish) to increase their portfolios.
Last June, according to the premium income figures, registered insurance lines and assets, INS was first, followed by Assa and Alico with its life and health insurance lines.
"Where Assa stands out is in general insurance, where in the first half of this year it accumulated almost $6.7 million in premiums paid, this amount was generated by 42 different products, especially those covering property damage", wrote Sergio Morales on Elfinancierocr.com.
The new insurance company was born as a result of the merger of “QBE del Istmo” Reinsurance Company and “Cooperativa Nacional de Educadores” (Coopenae).
“Aseguradora del Istmo Adisa SA” was authorized by the Costa Rican Insurance Superintendence to sell individual health and life insurance in the country.
Panamanian “QBE del Istmo” owns 76% of Adisa, while “Cooperativa Nacional de Educadores” (Coopenae), from Costa Rica, owns the remaining 26%.
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