Page 309 - XXV Asamblea General Miami 2012
P. 309

Venezuela

Venezuela goes up and down depending on the devaluations made. You will remember that
there was a considerable devaluation: the rate of exchange was USD 1= VEF 2.15-2.30, and was
devalued to USD 1 = VEF 4.30. There were no changes in the official rate of exchange during the
next three years, but at the beginning of 2013, the VEF was devalued to around 6.30 per dollar. As
I said, there is a big gap: in the black market the rate of exchange is USD 1= VEF 25. Each official
dollar is equal to 25% of the dollar in the black market. The new president will have to solve this
situation. Then, the lines on the graph run parallel because in those years the rate of exchange did
not fluctuate, growth was similar up to the moment devaluations were made.

                          Surety bonds in Venezuela: Premiums and annual growth

                300,000  05-06 06-07 07-08 08-09 09-10 10-11                                       11-12*   120%
                250,000                                                                                     100%
                200,000       105%                 66% 263,577 250,638                   52%       243,879   80%
                150,000  101%                                                                        31%     60%
                100,000                                                                   185,850   31%      40%
      '000 USD   50,000                     31%    66%                                      52%              20%
                                                                                                    2012*
                     -                 31%         159.164  -5% -3%                                           0%
                                                                                                            -20%
                                       121,064                                                              -40%
                                                                                                            -60%
                         60,267                             -5%
                                                                         -51%
                                                                                121,886

                         2005 2006 2007 2008 2009 2010 2011

                         Surety Premiums                    Growth in USD                Growth in Local Currency

* Figures projected at December 2012.

Surety premiums as a percentage of all lines’ premiums went up and down; in 2012 they
accounted for 1.73%. On the graph below you can see the impact of devaluation on surety
premium growth: in 2009-2010 they had a significant decrease, and in 2011 and 2012 they
boosted to 31%. These data are not adjusted for inflation, they are historical data.

      Surety bonds in Venezuela: Annual premium growth compared to the premiums of all lines

120%  101%                                                                                                         Surety Growth
100%                                                                                                               Premium Growth,
                                                                                                                   all lines
80%                                    66%
                                              44%
60%             49%      47%                                                                 52%
                                         07-08              25% 24%
40% 31%                                                                                           31% 31%

20%                                                                                                11-12*

0%

-20%                                               -5%

-40%                                                08-09            -33%
                                                            -51%
-60%
                                                              09-10
      05-06 06-07                                                          10-11

* Figures projected at December 2012.

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