"Brazil Insurance Report Q3 2016" Published

Brazil's insurance sector will continue to buck wider economic trends over the next few years, with both life and non-life insurers well places to grow their businesses and achieve growth in underwriting volumes. In fact, uncertainty surrounding Brazil's economic and political outlook may well serve as a driver for premium growth as consumers turn to life insurance products as a conduit for savings and investments. The need for long-term financial security will be underpinned by an ageing population and growing retirement-age demographic. These trends are drawing interest from overseas investors, with France's CNP Assurance one of a number of multinationals increasing their exposure to the market. Likewise, an extensive health insurance segment will continue to drive non-life premiums as Brazilians hedge against reduced levels of state healthcare and welfare provision. That said, a major risk for insurers will be high inflation which threatens to erode real premiums growth and drive up claims. This may deter some investors from entering o r extending their footprint in the market in the coming months.

Full Report Details at
- http://www.fastmr.com/prod/1182717_brazil_insurance_report_q3.aspx?afid=301

Key Updates And Forecasts

In April 2016, Caixa Seguradora acquired a 51% stake in Banco BTG Pactual subsidiary, Pan Seguros, for a reported BRB700mn. The deal gives French insurer CNP Assurances a greater footprint in Brazil's life insurance market; given the market's relatively strong growth potential it's possible other multinationals will look for similar M&A opportunities or partnerships with local firms.

In the same month, Colombia's Suramericana acquired the Brazilian insurance operations of UK-based insurer RSA.

Also in April, local media outlets reported that composite insurer, Bradesco, was in talks with multinational reinsurance giant, Swiss Re, with a view to launching a joint venture in Brazil. The companies reportedly signed a pre-contract agreement worth a reported USD213mn, which was expected to result in Bradesco transferring its risks portfolio to the Swiss company.

We forecast robust expansion in both Brazil's life and non-life markets over the next few years. Life premiums will grow by 5.9% a year on average in local currency terms over 2016-2020 to reach BRL103.6bn. Non-life premiums will grow by 8.4% a year on average to reach BRL337.7bn.

The Brazil Insurance Report has been researched at source and features BMI Research's independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.

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