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At a Glance: Ecuador’s insurers with most public sector contracts

Bnamericas Published: Tuesday, February 04, 2020

Ecuador’s public sector insurance contracts reached US$170mn in 2019, down 21% from the year before. 

The market share figures are from Ecuador’s public procurement service (Sercop) and were reported by local daily El Universo.

Overall, Ecuador's insurance market grew 6.4% last year and 31 insurers and reinsurers operated in the country.

According to some experts, due to the deceleration of public investment, insurance companies are going to bet increasingly on private infrastructure.

But the decline in the value of the public insurance contracts could also be related to greater competition following the break-up of state-run Seguros Sucre’s virtual monopoly.

This is because authorities reversed a ruling from the former administration of Rafael Correa which demanded state-run companies prioritize contracting with other state-run companies.

To date, the companies with most public sector contracts are:

SEGUROS SUCRE

The Guayaquil-based public P&C and life insurer continues to lead the private and public insurance segments. However, it has been losing participation over the years to private players. 

In 2019, it accounted for half of the public insurance contracts, down from 75.5% in 2018. Seguros Sucre ended 2019 with US$86.5mn worth of contracts with public companies, compared to US$101mn the year before.

The decline could be attributed to the opening of the market to private players.

Seguros Sucre is controlled by Corporación Financiera Nacional, a public financial institution that promotes the development of the productive and strategic sectors of Ecuador.

HISPANA

Hispana de Seguros benefited most from the market flexibilization and the end of Seguros Sucre's virtual monopoly. 

Hispana signed US$20.3mn in contracts with public bodies last year, up from US$6.1mn in 2018.

The group has over 200 employees through seven offices: Guayaquil (headquarters), Quito, Cuenca, Machala, Ambato, Santo Domingo and Loja.

Overall, Hispana reported 43,874 insured individuals last December, 25,000 of which in the Life category and 16,364 in personal accidents. Figures refer to private and public contracts. One year before, however the number of individuals insured was much higher, at 250,223.

ASEGURADORA DEL SUR

Based in Quito, Aseguradora del Sur also took a share from Seguros Sucre and gained US$20.3mn in public insurance contracts last year, up from US$6.1mn in 2018. 

In 2019, Aseguradora del Sur participated together with Hispana and Latina Seguros in a consortium that won an US$11mn insurance contract with Petroamazonas for all oil risks, civil and maritime liability. The company grew also in the private segment.

Aseguradora del Sur reported 204,771 private and public covered individuals in December, the majority (around 165,000) referring to life insurances. In December 2018, the figure was 24,675.

SEGUROS ALIANZA

Founded in 1982, Seguros Alianza secured nearly US$10mn in public deals last year, slightly up from the US$9.6mn in 2018.

With policies for the car, home and transportation segments, Seguros Alianza operates in Quito, Guayaquil, Cuenca, Manta, Machala, Santo Domingo de los Tsáchilas, Riobamba and Loja.

LATINA

The insurer grew to US$3.9mn in public insurance contracts last year, from US$1.6mn in 2018.

Latina is based in Guayaquil and has eight other subsidiaries across the country. In February 2019, the company opened offices in Quito.

At the end of December, 39,755 individuals were insured, down from 48,735 in December 2018.

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