Page 312 - XXV Asamblea General Miami 2012

Credit insurance

In Latin America the credit insurance market is considerably smaller than the surety market:
USD 280 million, about a tenth or a ninth of the surety business. Here we do observe dissimilar
behaviors, although the growth ratio declined due to the crisis. There were many cancellations
or problems with the clients. Then the market began to recover, but the growth ratio dropped
again in 2012, maybe, in part, because of the exchange rates.

Credit insurance in Latin America: Premiums and annual growth

300,000 05-06 06-07 07-08 08-09 09-10 10-11* 11-12* 35%
250,000 30%
000 USD 200,000 26% 30% 25%
150,000 24% 20%
100,000 97,202 15%
50,000 20% 20% 10%
2005 5%
- -4% 0%
2% -5%
-10%
122,268 151,870 197,772 190,474 228,775 274,630 280,814

2006 2007 2008 2009 2010 2011 2012*

Credit Premiums Growth in USD

* Figures at December 2012,
Argentina: Fiscal year closing at June except for COFACE : December.
Venezuela: Figures provided by La Mundial (CESCE).

The quarterly sequence shows premium growth evolution. The ratio of losses to earned
premiums increased from 33% to 34% from September to December 2012; so there were no
significant changes. Underwriting results were about 28%. And the net combined ratio (upper
part of the graph) was 68%.

Credit insurance premiums in Latin America: Trend in loss ratio and underwriting results

300,000 68% 69% 67% 68% 80%
250,000 70%
66% 60%
50%
.000 USD 200,000 34% 36% 35% 33% 34% 40%
150,000 30%
20%
100,000 25% 23% 25% 28% 28% 10%
50,000 0%
276,203 2% 282,273 -4% 271,569 -0.01% 271,553 3% 280,814 -10%
-

Dec.2011 Mar.2012* Jun.2012* Sep.2012* Dec.2012

Credit Premiums Underwriting Results
Net Combined Ratio Quarterly Growth

Ratio of Losses to Earned Premiums

* Figures at 12 months.
Argentina: Fiscal year closing at June except for COFACE: December.

310 Asociación Panamericana de Fianzas / Panamerican Surety Association