CORPORATE | 11.24.2016
MAPFRE is the non-life leader in Latin America
The insurance industry contracted by 8.8 percent in the regional area in 2015 and Bradesco is still the top insurance company
The insurance industry in Latin America contracted by 8.8 percent in 2015, influenced by the depreciation of Latin American currencies against the U.S. dollar, most notably the Brazilian real and the Colombian peso, and the sharp depreciation of the exchange rate in Venezuela. Total revenue volume in the industry reached $150,818 million.
So states the annual study by MAPFRE Economic Research, published by Fundación MAPFRE, on the insurance market in Latin America. The report shows that the top ten insurers in the region, making up 41 percent of market revenue, contracted by 19 percent to $61,964 million.
In the overall premiums ranking, the study again confirmed Bradesco’s leadership, with revenues of $10,759 million and a market share of 7.1 percent.
Bradesco is followed by another Brazilian company, Brasilprev, with a market share of 6.8 percent. The insurance portfolio of this latter company is composed entirely of the Vida Generador de Beneficio Libre (VGBL) product, the driving force behind growth in Life insurance in Brazil in recent years. The MAPFRE Group ranks third in the standings, with $9,674 million in premiums (52 percent from Brazil) and a market share of 6.4 percent.
In 2015, the market was shaped by the announcement of major M&A agreements within the insurance industry. Only nine of the 25 groups featured in the ranking posted premium growth in U.S. dollars, most notably the 33.3 percent rise in the Colombian group Suramericana, which in 2015 announced that it would acquire all the subsidiaries in the region of the British group RSA.
Table 1.
Overall ranking of insurance groups in Latin America 2015
Ranking by premium volum (USD million)
| No. | Group | Country | Premiums 2014 | 2015 | % | Market Share(%) |
|---|---|---|---|---|---|---|
| 1 | BRADESCO | Brazil | 10.759 | 10.759 | -18,1 | 7,1 |
| 2 | BRASILPREV 1 | Brazil | 12.011 | 10.232 | -14,8 | 6,8 |
| 3 | MAPFRE | Spain | 12.680 | 9.674 | -23,7 | 6,4 |
| 4 | ITAÚ UNIBANCO | Brazil | 8.613 | 6.067 | -29,6 | 4,0 |
| 5 | ZURICH | Switzerland | 7.348 | 5.656 | -23,0 | 3,8 |
| 6 | METLIFE | United States | 5.723 | 5.045 | -11,8 | 3,3 |
| 7 | SURAMERICANA | Colombia | 3.382 | 4.508 | -33,3 | 3,0 |
| 8 | PORTO SEGURO | Brazil | 4.947 | 3.668 | -25,9 | 2,4 |
| 9 | LIBERTY MUTUAL | United States | 5.477 | 3.215 | -41,3 | 2,1 |
| 10 | GRUPO NACIONAL PROVINCIAL | México | 3.212 | 3.140 | -2,2 | 2,1 |
| Total Top 10 | 76.525 | 61.964 | -19,0 | 41,1 |
|---|---|---|---|---|
| Total Top 25 | 107.231 | 92.531 | -13,7 | 61,4 |
| Total Top 25 | 165.408 | 150.818 | -8,8 | 61,4 |
Source: MAPFRE Economic Research (with data from supervisory bodies in the region)
1 Owned by Banco de Brasil and Principal Financial Group
Meanwhile, the total premium volume for Non-Life business in Latin America was $88,784 million, 7.4 percent less than the previous year. The 25 largest insurance groups in the Non-Life sector in Latin America account for 58 percent of premiums and, in 2015, brought in revenues of $51,195 million, representing a 10.5 percent decrease on the previous year.
The Non-Life ranking continues to be led by MAPFRE, which, with $7,299 million in 2015, more than double the revenue achieved by its direct competitors.
Table 2
Non-life ranking of insurance groups in Latin America 2015
Ranking by premium volume (USD million)
| No. | Group | Country | Premiums 2014 | 2015 | % | Market Share(%) |
|---|---|---|---|---|---|---|
| 1 | MAPFRE | Spain | 9.605 | 7.299 | -24,0 | 8,2 |
| 2 | PORTO SEGURO | Brazil | 4.669 | 3.491 | -25,2 | 3,9 |
| 3 | LIBERTY MUTUAL | United States | 5.309 | 3.096 | -41,7 | 3,5 |
| 4 | SURAMERICANA | Colombia | 1.856 | 2.874 | 54,9 | 3,2 |
| 5 | ZURICH | Switzerland | 3.549 | 2.748 | -22,6 | 3,1 |
| 6 | TRIPLE-S | Puerto Rico | 2.083 | 2.737 | 31.4 | 3,1 |
| 7 | INNOVACARE | United States | 1.810 | 2.248 | 24,2 | 2,5 |
| 8 | CHUBB | Suiza | 1.948 | 2.186 | 12,2 | 2,5 |
| 9 | AXA | Switzerland | 2.433 | 2.035 | -16,4 | 2,3 |
| 10 | BRADESCO | Brazil | 2.898 | 1.993 | -31,2 | 2,2 |
Finally, in relation to the Life business, Brazilian groups continue to occupy the top three positions. Latin America’s 25 largest insurance groups in the Life sector earned $50,976 million in premiums in 2015, a 12.6 percent decrease on the prior year’s revenue figures.
Table 3
| No. | Group | Country | Premium 2014 | 2015 | % | Market Share(%) |
|---|---|---|---|---|---|---|
| 1 | BRASILPREV 1 | Brazil | 12.011 | 10.232 | -14,8 | 16,5 |
| 2 | BRADESCO | Brazil | 10.234 | 8.767 | -14,3 | 14,1 |
| 3 | ITAÚ UNIBANCO | Brazil | 6.827 | 5.432 | -20,4 | 8,8 |
| 4 | METLIFE | United States | 4.730 | 4.238 | -10,4 | 6,8 |
| 5 | ZURICH | Switzerland | 3.799 | 2.908 | -23,4 | 4,7 |
| 6 | MAPFRE | Spain | 3.075 | 2.375 | -22,8 | 3,8 |
| 7 | CNP | France | 2.034 | 2.065 | 1,5 | 3,3 |
| 8 | BBVA | Spain | 1.875 | 1.754 | -6,4 | 2,8 |
| 9 | SURAMERICANA | Colombia | 1.526 | 1.633 | 7,0 | 2,6 |
| 10 | BANAMEX (CITIGROUP) | United States | 1.561 | 1.298 | -16,9 | 2,1 |
Life ranking of insurance groups in Latin America 2015
Ranking by premium volume (USD million)
Methodology
In this edition of the ranking some methodological changes were introduced in order to present more complete information on the Latin American insurance market, by incorporating premiums of insurers operating in the pension fund insurance line.
Additionally, another of the most evident new features is that information is presented in U.S. dollars instead of euros, as was the practice in previous editions. This change was made to bring the ranking into line with standards for measuring international financial flows and to avoid any errors that could arise when converting between local currency and euros.
You can view the complete report here.