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Brazilian insurers posted reduced net profits in the first nine months of this year, due to the combination of the persisting effects of the country's two-year economic recession and consequent reductions in the benchmark interest rate.
Insurance companies operating in Brazil reported total net profits of 9.85bn reais (US$3.0bn) in January-September, including health and pension operations, which was a 7.8 down on the same period of last year, according to figures from insurance regulator Susep compiled by local consultancy Siscorp.
The country's prolonged recession and high level of unemployment, which have only recently appeared to be on the road to recover, are is still affecting the insurance sector.
In addition, the central bank's cuts in the country's benchmark interest rate have undermined insurers' results due to lower returns on their investment portfolios.