Brazil insurers see slower growth in premiums

By
Thursday, July 12, 2018

Brazil's insurance industry saw growth of premiums slow in the first five months of the year.

Written premiums, including savings bonds but excluding health insurance, totaled 99.6bn reais (US$25.6bn) in January-May, up 2.1% from the same period of 2017, according to data from regulator Susep, which was compiled by local insurance confederation CNSeg.

Start your 15 day free trial now!

cta-arrow

Already a subscriber? Please, login

By comparison, written premiums increased 3.3% in January-April.

"The deceleration in the pace of the growth of the insurance market is in line with the performance of the Brazilian economy," said Lauro Faria, an economist at Escola Nacional de Seguros, a research department of CNseg.

After expanding 1% last year, the economy was initially projected to growth around 3% this year. However, local economists have lowered their year-end forecasts to around 1.5% after a sluggish performance in the first months of 2018 due to domestic and international factors, a nationwide truckers strike in May, and political risk related to the October 7 presidential elections.

Life and auto insurance were the best-performing segments in January-May, with premiums up 9.3% and 8.8%, respectively.

The overall performance was dragged down by the popular VGBL pension product and mandatory vehicle insurance (DPVAT), which registered contractions of 3.3% and 22.8%, respectively.