Brazil Insurance Report Q2 2011
Business Monitor International, February 2011, Pages: 70
The Brazil Insurance Report provides industry professionals and strategists, corporate analysts, insurance associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Brazil's insurance industry.
Key Insights On Brazil’s Insurance Sector:
Writing in January 2011, the publisher estimates that total premiums in the Brazilian insurance industry amounted to BRL178,671mn in 2010. This comprises of non-life premiums of BRL121,462mn and life premiums of BRL57,209mn. In 2015, we expect the corresponding figures to be BRL301,043mn, BRL205,938mn and BRL95,105mn respectively. Underpinning our forecasts are key drivers that include non-life penetration rising from 3.61% of GDP in 2010 to 3.86% in 2015, and life density growing from US$159 per capita in 2010 to US$260 by 2015.
The publisher has also factored in health insurance premiums. Details are sourced from Agência Nacional de Saúde Suplementar (ANS), the health insurance regulator. For BMI’s purposes, the non-life segment includes the consolidated insurance figures published by the industry regulator, Superintendência de Seguros Privados (SUSEP), except for VGBL products, which are a sub-set of personal lines that belong to the life segment. We consider that the Brazilian non-life segment also includes the health insurance premiums disclosed by ANS. At the time of writing, SUSEP has published data for the first seven months of 2010, which we have incorporated into our estimates for the whole year.
The publisher considers the life segment to consist of three elements: VGBL premiums, private pension contributions (which are dominated by premiums for PGBL products) and contributions to capitalizacão savings bonds. The development of the Brazilian insurance sector during the first seven months of 2010 is shown in the table below. BMI’s proprietary Insurance Business Environment Rating for Brazil is 67.5.
Brazil’s financial infrastructure has undergone substantial improvements over the last few years. The insurance sector is also benefiting from the general improvement in investors’ perceptions of risks associated with the country. A continuing trend in lower long-term interest rates and stronger currency helps in the development of non-life insurance and greater availability of long-term local currency assets is helpful for the development of organised savings.
Brazil’s financial services sector is made up predominately of organisations that are, by global standards, easily large enough to achieve substantial economies of scale. This has been reinforced by the purchase by Itaú Holding Financiera of the smaller União de Bancos Brasileiros (Unibanco), creating the largest bank in the southern hemisphere in terms of assets. The Itaú/Unibanco combination comprises of the fully owned insurance operations of Unibanco and those of Itaú within a huge financial services empire that has an extensive branch network in Brazil. The analyst will keep track of whether they are able to achieve substantial rationalisation benefits within their insurance operations and whether these gains flow mainly to shareholders or customers.
The merger roughly coincided with the sale of troubled US insurance group AIG’s stake in a joint venture with Unibanco back to the Brazilian bank. This deal is noteworthy because despite AIG’s need to raise cash to repay funds borrowed from the US treasury, relatively few of its insurance businesses have actually been sold. AIG’s Nan Shan operation in Taiwan is the other large insurer that has been divested. These deals and the sector as a whole make Brazil one of the most exciting of any of the countries whose insurance sectors are profiled by BMI.
Brazil’s insurance industry contains many of the leading global insurance groups. They are challenged by the links between the large local groups and the banking networks but not insurmountably. ING’s minority holding in SulAmérica means the group probably has the strongest position among the foreign players and the broadest spread in terms of product lines. Several other foreign groups have focused on particular niches, such as AEGON’s partnership with Mongeral, with a common philosophy, as well as an orientation towards long-term savings products. Allianz’s results highlight growth outside the major cities and from non-life lines in particular.
Executive Summary
- Table: Overview Of Brazil’s Insurance Sector
- Key Insights On Brazil’s Insurance Sector
- Table: Principal Insurance Lines Gross Written Premiums, January-July 2009 And January-July 2010 (BRLmn)
- Issues To Watch
SWOT Analysis
- Brazil Insurance Industry SWOT
- Brazil Political SWOT
- Brazil Economic SWOT
- Brazil Business Environment SWOT
MetLife’s Acquisition Of ALICO
- Table: ALICO At A Glance
- Table: ALICO’s Pre-Tax Profits By Segment And Region Contribution, Year To November 30 2009 (%)
- Table: ALICO – A Market Leader In Japan
- Table: MetLife’s Acquisition Of ALICO
- Table: MetLife And ALICO Combined
Latin America Market Overview
- Table: MAPFRE America – Total Premiums, H109 And H110 (EURmn)
- Table: Latin America – Non-Life Premiums, 2009-2010 (US$mn)
- Table: Latin America – Life Premiums, 2009-2010 (US$mn)
Projections And Forecasts
- Table: Premiums, 2007-2015
- Projections And Drivers Of Growth
- Table: Growth Drivers, 2007-2015
Country Update
- Macroeconomic Outlook
- Table: Brazil Economic Activity, 2006-2015
- Political Outlook
Insurance Business Environment Ratings
- Table: Brazil’s Insurance Business Environment Rating
- Table: Latin America And Caribbean Insurance Business Environment Ratings
Regional Context
- Table: Non-Life Premiums In A Regional Context, 2009
- Table: Life Premiums In A Regional Context, 2009
Major Players In Brazil’s Insurance Industry
- Table: Insurance Companies By Gross Written Premiums, January-July 2010
Analysis Of Regional Competitive Conditions
Company Profiles
- Local Company Profiles
- Bradesco
- Brasilveiculos
- Itaú Seguros
- Porto Seguro
- SulAmérica
- Regional Company Profiles
- ALICO
- Allianz
- Cardif
- CNP
- Generali
- HSBC Insurance
- ING
- Liberty Mutual
- MAPFRE
- MetLife
- New York Life
- Prudential Financial
- QBE
- RSA
- Zurich
Country Snapshot: Brazil Demographic Data
- Section 1: Population
- Table: Demographic Indicators, 2005-2030
- Table: Rural/Urban Breakdown, 2005-2030
- Section 2: Education And Healthcare
- Table: Education, 2000-2003
- Table: Vital Statistics, 2005-2030
- Section 3: Labour Market And Spending Power
- Table: Employment Indicators, 1999-2004
- Table: Consumer Expenditure, 2000-2012 (US$)
- Table: Average Annual Wages, 1996-2002
BMI Methodology
- Insurance Business Environment Ratings
- Table: Insurance Business Environment Indicators And Rationale
- Table: Weighting Of Indicators
- Bradesco
- Brasilveiculos
- Itaú Seguros
- Porto Seguro
- SulAmérica
- ALICO
- Allianz
- Cardif
- CNP
- Generali
- HSBC Insurance
- ING
- Liberty Mutual
- MAPFRE
- MetLife
- New York Life
- Prudential Financial
- QBE
- RSA
- Zurich
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