Insurers' January-April earnings plummet 96% on reserves buildup

Colombian insurers booked earnings of 21.3bn pesos (US$12mn) in January-April, down 96% when compared to the year-ago period, as the buildup of technical reserves outpaced their reduction, the latest figures from financial services regulator Superfinanciera show. In the four months, the industry saw a 5.2% year-on-year increase in reserve reduction, while buildup increased 9.9%. Overall for Colombian insurers, income for the period was up 7.3% to 16.71tn, while expenses rose 11.1% to 16.69tn. Life insurers posted a combined 42.7bn-peso loss in the four months, compared to a 399bn-peso profit for the year-ago period, while P&C insurance companies booked 64bn pesos in earnings, a 54.2% drop in the same comparison. PREMIUM GROWTH Written life premiums rose 20.9% to 2tn pesos in January-April, driven by an 18% increase in workers' compensation premiums - the sector's largest segment - to 530bn pesos. Group life premiums grew 16.2% to 386bn pesos. Locally owned Suramericana remained the country's biggest life insurer with 429bn pesos in premiums, for a 21.5% market share. Second place was held by Seguros Bolívar, with premiums of 269bn pesos. P&C premiums rose 14.5% to 2.36tn pesos in the four months. The sector's largest segment, auto insurance, posted a 17.6% increase to 631bn pesos in premiums. Suramericana was also the leading P&C player with 340bn pesos in premiums - equal to a 14.4% market share - followed by Liberty Colombia, the local unit of US insurer Liberty Mutual, with premiums of 249bn pesos.