Insurance premiums in Latin America last year amounted to 134,361 million dollars, 57% of which corresponded to Non-Life insurance and the remaining 43% to Life insurance. The sector, as revealed by the report published yesterday by MAPFRE EconomicsAt the regional level, it suffered a decline of 11.9% compared to the previous year.
The contraction of the Life business (-18.7% measured in dollars, compared to the growth of 5.1% in 2019) and the effect of the strong depreciation in the exchange rates of the currencies in the main markets explain the fall. Non-Life insurance premiums fell 6.1% (compared to –1.1% in 2019).
“The Non-Life segment in the Latin American and Caribbean regionAt an aggregate level, it has had a behavior very aligned with that of this business segment in other regions of the world, with a strong decline in the volume of the Auto business (which represents 16.2% of total premiums in the region ), which has been partially offset by the Health business (which represents 15% of total premiums) ”, the report indicates.
Brazil, Mexico, Chile and Colombia were the countries in which the premiums of Life. On No life, the Chilean market was the one that fell the most (-15.3%), followed by Ecuador (-5.3%), Mexico (-3.1%), Peru (-2.4%) and Brazil (-2.0%).
Profit drop
In 2020, the aggregate net result of the Latin American insurance market stood at 9,315.5 million dollars, experiencing a decline of -30.1% compared to the equivalent aggregate result of the previous year. In this way, with the exception of the markets of Chile, Costa Rica, Guatemala, Paraguay, Puerto Rico and Uruguay (whose profits grew), in the other markets the profits in dollars with respect to the previous year decreased, in which it has had great influence the depreciation of exchange rates, but also factors related to its technical and / or financial profitability.
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