RIO DE JANEIRO--(BUSINESS WIRE)--Fitch Ratings has published its semi-annual Brazilian Insurance Dashboard, a publication that examines the insurance industry in Brazil.
Key items covered in this report include premium growth trends and outlook and sector profitability. Fitch notes that premium growth will remain under pressure throughout 2016. The continuing rise in unemployment, persistently high inflation, and investors and companies' lack of visibility into future macroeconomic dynamics are ongoing risks.
In 2015, total premiums for the Brazilian insurance industry (excluding the health segment) posted 10% growth, reaching BRL215 billion (USD55 billion). Growth was about the same as 2014, but well below the 2010-2013 average of 17% per year. Growth was mainly driven by VGBLs (Vida Gerador de Beneficios Livres, a private complementary pension plan and a life insurance product, with tax benefits on returns), which grew 21%. Growth in other segments was quite modest.
In 2015, sector profitability remained solid, despite the slowdown. Profitability should continue to benefit from high interest rates in 2016. However, a larger than expected fall in premium growth and an increase in inflation could push loss and expense ratios up and undermine technical results.
The 'Brazilian Insurance Dashboard' is available on Fitch's website at www.fitchratings.com, or by clicking on the link.
Additional information is available at 'www.fitchratings.com'.
Brazilian Insurance Dashboard (Second-Half 2015)
https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=879595
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