Page 315 - XXV Asamblea General Miami 2012

Credit insurance in Latin America: Comparison between credit insurance
and surety bond premiums per country

100%

90%
80% 28%

70%

60%
50% 83% 88% 89% 89% 90% 90% 95% 95% 98% 98%

40%
30% 72%

20%

10% 17% 12% 11% 11% 10% 10% 5% 5% 2% 2%
0%

Chi Bra Reg Uru Mex Arg Per Col Ecu Bol Ven

Surety Bonds Credit Ins.

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

The loss ratio peaked during the crisis, both the gross and net loss ratios were quite high. In
2010 it sunk, and showed a slight upward trend in the last years, but still controllable. Each
country had a different situation: Uruguay and Bolivia had very high net loss ratios: in the case
of Bolivia, the gross loss ratio was also the highest. Uruguay had negative underwriting results.

The net combined ratio showed a distortion due to abundant reinsurance. On the other hand,
the gross combined ratio perhaps was more consistent, 57% with an upward trend, but almost
a half of the previous year’s.

In the gross combined ratio by country, Chile showed the highest figure; unfortunately, it
exceeded the average, 57%. The next was Argentina, followed by Venezuela.

Reinsurance cession, also by country, was different. Some countries exceeded the average, like
Uruguay, Colombia, Venezuela and Mexico, which were above 65%.

In the analysis of premium distribution per country, Brazil maintained the first place, with
29.5%, though the previous year it had almost a 33% share. Chile was the second credit
insurance market in Latin America: it rose from 26.6% to 27.3%. Mexico maintained its 20%
and the third place, followed by Argentina, with almost 10%, and Colombia, with 8.4%.

313XXV Asamblea General / XXV General Assembly