Several multinational insurance companies have recently reported growth in their Latin American business, as well as plans for further expansion of their operations in the region.
ACE Latin America recently reported that its total premiums in the region in 1Q09 were up 11% from 1Q08, and that it’s recurring net income was up 40% by the same comparison. This stands in stark contrast to the group’s overall overseas numbers, where it saw total premiums decrease 4.8% and its recurring net income decrease 18.4%. Jorge Luis Cazar, the CEO of ACE Latin America, reportedly stated to BN Americas that the company expects 12-13% premium growth in Brazil and most of the other countries in the region, with the exception of Mexico and Puerto Rico due to their close ties to the struggling U.S. economy. Mr. Cazar also reportedly commented that the company is considering expansion into additional countries in the region, including in Central America.
Mapfre Chile recently indicated that it is seeking to grow its activity in the large risk market in Chile through its recently launched Mapfre Global Risks offerings in the country. According to the Chilean insurance regulator, the Superintendencia de Valores y Seguros, Mapfre Chile is already the nation’s fourth largest insurer with a market share of approximately 10%. BBVA also recently reported that net profits from its Latin American banking, pension and insurance operations increased by 19.5% 1Q09 over 1Q08. Eduardo Fuentes, CEO of BBVA Pensiones y Seguros, reportedly also stated to BN Americas that BBVA is looking to expand its insurance operations in the region, in particular through a recently renewed and “reinforced” insurance product distribution agreement with Mapfre.