The rating outlook for the Peruvian insurance sector remains stable, according to data from Fitch Ratings.

Fitch believes Peru’s insurance companies are well supported by adequate capital positions and robust profitability, but still highly influenced by relatively volatile financial income.

It noted that the investment portfolios remains concentrated in domestic issuers, most of them capped by Peru’s sovereign rating.
Fitch said the stable outlook reflects its expectation that the insurance market will be supported by Peru’s economic performance.

It said key factors that could lead to a deterioration of the sector’s credit profile include: an economic downturn in Peru; persistent pressure in operational margins resulting from the intense competition in the local insurance market; a deterioration of investment credit risk portfolio, and an increasing trend of leverage.

Fitch estimates that the GWP for Peru’s insurance industry will end 2014 growing at around 9%, while for 2015 the estimate is in the 11% to 12% range (non-life 9% to 10% and life 12% to 13%).

The insurance market in Peru will remain highly concentrated, but immersed in a gradual process of de-concentration in the last years, according to Fitch.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

However, the ratings agency believes that this process will be accelerated in the medium term due to the sudden entry of new companies and the attractive development expectation for Peru’s insurance industry for the medium and long term.