Brazilian insurers' investments are safe given their low exposure to local and foreign securities, insurance federation CNSeg quoted the head of regulator Susep as saying.
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Insurers today have investments of less than 5% in stocks, with much higher percentages in government bonds, Armando Vergilio said at a recent conference of insurance broker association Fenacor.
"Could you ask for a greater guarantee than to be invested in government bonds?" Vergilio was quoted as saying.
While more than 90% of insurers' investments are currently in government bonds, with the rest in local stock and corporate bonds, Susep may be reviewing measures to prohibit investments in corporate bonds, Brazilian financial daily Valor Econômico reported.
Insurance premiums in Brazil rose 17.3% to 44.1bn reais (US$20.4bn) from January-August compared to the same period in 2007, according to figures from Susep.
