Page 298 - XXV Asamblea General Miami 2012

Conclusions

• In Mexico, the surety market totaled USD 478 million, i.e., it did not practically grow; it
increased by 0.4% in US dollars but by 6% in Mexican pesos. The rest of the lines expanded
by 5%; so surety premiums grew at a much slower pace than the other insurance lines.

• Surety bonds represented 2% of the insurance portfolio (2.1% in 2011) and accounted for 0.04%
of the GDP and 0.34% of public expenditure; for the latter, precrisis figures were not recovered.

• Mexico concentrated 22% of the Latin American market; it climbed from the second to the
first position.

• The five largest companies concentrated 80% of the market.
• The ratio of losses to earned premiums was very good (21%), although it rose by 2 percentage

points compared to 2011. The gross loss ratio was also very good (11%), 1 percentage point
up as against 2011, as well as the underwriting results (34%), although with 3 percentage
points less than in 2011.
• The net combined ratio stood at 65%, 2 percentage points less than in 2011 and the gross
combined ratio, at 55%, approximately the same as in 2011.
• The quarterly trend was stable; in this period the average rate of exchange was USD 1 =
MXN 13.20 (USD 1 = MXN 11.49 in 2011).

Colombia

The Colombian market showed a very interesting trend; it grew both in US dollars and in
local currency; in the last three years growth in US dollars was higher. This means that the
Colombian peso appreciated against the dollar. This growth remained stable since 2008;
though it dropped a little during the crisis, the decline did not reach the low ratios of other
countries. The Colombian market dropped slightly in 2007, but as from 2008 its growth was
higher compared to that of the rest of the countries.

Surety bonds in Colombia: Premiums and annual growth

450,000 05-06 06-07 07-08 08-09 09-10 10-11 11-12* 60%
400,000 50%
350,000 24% 38% 53% 418,755 40%
300,000 22% 360,990 30%
250,000 102,846 39% 20%
200,000 10%
'000 USD 150,000 313,454 0%
100,000
50,000 246,336 27% 15% 16%
11% 12% 13%
- 22% 173,086 176,873
125,539 2%

-2% -10%
2005 2006 2007 2008 2009 2010 2011 2012*

Surety Premiums Growth in USD Growth in Local Currency

* Figures at December 2012.

296 Asociación Panamericana de Fianzas / Panamerican Surety Association