El Salvador

SISA 9mth profit jumps 72%

Bnamericas Published: Tuesday, December 05, 2006
El Salvador's largest insurance company SISA, the local unit of Central American financial group UBCI, reported a 72.2% increase in consolidated earnings in the first nine months compared to same-period 2005. Net income for the nine-month period totaled US$7.32mn compared to the US$4.25mn reported for the same year ago period, according to financial statements obtained from the company. Premiums written climbed 6% in the first nine months to US$55.6mn, while net premiums written rose 5% in the same period to US$35.5mn. The company expects to report a large increase in premium volume during the last two months of this year, SISA CEO Eduardo Montenegro told BNamericas. ""There is a seasonal factor that significantly affects premium volume. December accounts for more than a twelfth of total premiums," Montenegro said. Bottom-line results for the first nine months were better than expected, while premium income was in line with expectations, the executive added. Investment gains totaled US$1.79mn in the first nine months, a 72% rise over the same period in 2005. On the balance sheet, the investment portfolio expanded 30% to US$46.4mn at end-September compared to the same date last year, while technical reserves increased 4% to US$13.6mn. Shareholder equity was up 27% to US$26.3mn at the end of September compared to end-September 2005. SISA sells non-life insurance and subsidiary SISA Vida sells life insurance. The company forms part of El Salvador-based financial group Inversiones Financieras Cuscatlán, which also controls the country's second largest bank Banco Cuscatlán and pension fund management firm AFP Confía. Panama-based UBCI - known as Grupo Cuscatlán - is now the largest Central American financial group still in local hands, with assets of US$5.59bn and shareholder equity of US$676mn as of September 30.

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