S&P Study Finds Latin American Insurers Improve Performance

November 4, 2005

Overall, Latin American insurance companies are working to improve underwriting results and improve performance, says a report released by Standard & Poor’s Ratings Services titled, “The Evolution Of Profitability In The Latin American Insurance Industry.”

“In spite of challenges in the economic environment in the largest markets in Latin America-Brazil, Mexico, Chile, and Argentina-Latin American insurance companies maintained adequate profitability in recent years,” S&P notes. “Trends toward sound underwriting conditions, price increases, more efficient use of reinsurance, and cost controls are reflected in strengthened underwriting earnings.”

“Insurers, however, still have to demonstrate the capacity to capitalize from these changes and to increase underwriting profits, as financial income remains an important driver of bottom-line results in most of the countries,” observed S&P credit analyst Tamara Berenholc.

The report is available to subscribers of RatingsDirect, Standard & Poor’s Web-based credit research and analysis system, at www.ratingsdirect.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-9823 or sending an e-mail to research_request@standardandpoors.com. Ratings information can also be found on Standard & Poor’s public Web site at www.standardandpoors.com; under Credit Ratings in the left navigation bar, select Find a Rating, then Credit Ratings Search. All Standard & Poor’s research information is accessible for 24 hours after publication on the public Web site.

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