Page 282 - XXV Asamblea General Miami 2012

Premium data are from the last quarters (12 months) to show the trends so that the reader
may compare different indicators. The graph includes the underwriting results–which were
somewhat stable–the ratio of losses to earned premiums or the sureties’ net loss ratio, which
was about 22%, and the gross loss ratio, which showed an upward trend and in a certain way
affected reinsurers more than sureties.

Surety bonds in Latin America: Trend in premiums, loss ratio and underwriting results

.000 USD 2,500,000 59% 58% 61% 62% 62% 70%
2,000,000 2,144,616 2,183,529 2,140,185 2,167,236 2,224,668 60%
1,500,000 50%
33% 34% 34% 33% 34% 40%
30%
1,000,000 21% 19% 22% 23% 22% 20%
500,000 10%
- 2% -2% 1% 3% 0%
-10%

Dec. 11* Mar. 12* June 12* Sept. 12* Dec. 12*

Surety Premiums Underwriting Results
Ratio of Losses to Earned Premiums Surety Quarterly Growth
Net Combined Ratio

* Figures at 12 months.

Surety premiums accounted for 1.37% of all Latin American life and non-life insurance
premiums. That is, the number of surety premiums was growing and then declined slightly. So,
other insurance lines were expanding more rapidly.

Surety bonds in Latin America: Premiums (percentage of all lines)

2.00%

1.50% 1.47% 1.54% 1.51% 1.36%
1.00%
1.40% 1.43% 1.39% 1.32%

0.50%

0.00%
2005 2006 2007 2008 2009 2010 2011 2012*

* Figures at December 2012 except for El Salvador (Sept. 2012, 12 months), Paraguay (June 2012), Dominican Rep., Puerto Rico
(Dec. 2011) & Venezuela (figures projected at December 2012) / Fidelity bonds are not included. / Argentina, Paraguay: Fiscal year
closing: June. / Puerto Rico: Nonresident companies’ figures are included.

280 Asociación Panamericana de Fianzas / Panamerican Surety Association