According to a recently published report by Fitch Ratings Centroamerica, the Nicaraguan insurance market, which is primarily based on automobile and life insurance, significantly improved its operating performance and accident rates in 2008.

Net insurance premiums for the year totaled C$21 million, a 17% increase from the amount reported in 2007. The private insurance sector grew by 17%, with companies such as the Metropolitana Insurance Company experiencing a growth of 31.5% and Lafise Insurance Company growing by 25.7%. In addition, the market, including the state insurance company, was able to overcome 2007’s operating losses, registering a decreased combined index of 96.3%, compared to last year’s combined index of 100.7%. Furthermore, the Nicaraguan Insurance Institute grew at a rate of 8.6%.

There is concern, however, over the impact the expected decrease in remissions and the level of economic activity in the coming year will have on the progress achieved this past year.

For a copy of the Fitch Report, please click here.