Boston, MA -- (SBWIRE) -- 06/03/2013 -- Key Insights and Key Risks
At first glance, the newsflow from Argentina's insurance sector through late 2012 and early 2013 looks good. There has been strong growth in premiums in both the non-life and the life segments. Several companies have highlighted that their Argentine businesses are contributing meaningfully to the development of their regional operations. Some players have confirmed that profitability has been improving. Unlike in other parts of the world in 2011, or Chile in 2010, there have not been major catastrophe losses. In the non-life segment, both RSA and Australia's QBE have made acquisitions that have given them leadership positions. Overall, we would not be surprised if the process of consolidation continued through 2013 and 2014. Meanwhile, many of the leading local groups continue to benefit from their associations with government-backed financial institutions, from the support of policy-holders who see their own interests as being closely aligned with mutual insurers, and/or strong brand names.
View Full Report Details and Table of Contents
In both of the major segments, premiums have in the recent past been distorted by the high inflation in Argentina (officially 10-11% but widely recognised as being between two and three times as high). However, it appears that many of the companies in the non-life segment have pricing power. Partly for this reason, they have been - and will remain - largely immune to the downturn in sales of autos in Argentina. Sales of cars and other vehicles matter: auto-related lines generate nearly half of all premiums written in the non-life segment. Comments from the companies themselves suggest to us that, for most of them, growth in the recent past has been profitable. We expect that this will continue to be the case.
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. Representing the world's top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff will help you find the right research to fit your requirements and your budget. For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.
Browse all Financial Services research reports at Fast Market Research
You may also be interested in these related reports:
- United States Insurance Report Q3 2013
- Mexico Insurance Report Q3 2013
- Brazil Insurance Report Q3 2013
- New Zealand Insurance Report Q3 2013
- Iran Insurance Report Q2 2013
- Singapore Insurance Report Q2 2013
- Slovakia Insurance Report Q2 2013
- Kenya Insurance Report Q2 2013
- Romania Insurance Report Q2 2013
- Qatar Insurance Report 2013