Fitch: Peruvian Insurance Outlook Remains Stable for 2016

SANTIAGO, Chile--(BUSINESS WIRE)-- Solid premium's growth, and competitive profitability in the short and medium term, points to a Stable Outlook for the Peruvian insurance sector in 2016, according to a new Fitch Ratings report.

Insurance premiums increase will be superior than the Peruvian economy growth, deepening the insurance penetration in a still underpenetrated market. Major premiums growth will be boosted by annuities and saving insurance products, followed by vehicles, property and health.

Industry profitability remains in competitive levels, as a result of stable investment income, controlled claim losses and a sustained demand for insurance product. As of November 2015, the industry registered a ROAA of 2.9% and ROAE of 18.8%. In Fitch's opinion, these levels of profitability will remain in 2016.

The Peruvian insurance industry, presents a balanced premium mix between property, life and pension products. Although the insurance penetration is one of the lowest in Latin America, its product sophistication is high and presents a broad offer of insurance coverage. Future regulation changes may affect negatively the premiums growth and annuities/pension development.

As of November 2015, the industry is still dominated by few companies, which concentrates the bulk of premiums and net income. In the last five years the number of new companies has increased raising the level of competency which may result in a less concentrated market in the medium term.

The full report, '2016 Outlook: Peruvian Insurance Sector - Solid Growth, Despite Sluggish Economy', is available at 'www.fitchratings.com'.

Additional information is available at 'www.fitchratings.com'

2016 Outlook: Peru's Insurance Sector (Solid Growth, Despite Sluggish Economy)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=876782

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View source version on businesswire.com: http://www.businesswire.com/news/home/20160121006130/en/

Fitch Ratings
Santiago Recalde
Associate Director
+56-2499-3327
Alcantara 200, Of. 202, Las Condes
Santiago, Chile
or
Rodrigo Salas
Senior Director
+56-2499-3309
or
Media Relations:
Elizabeth Fogerty, New York, +1-212-908-0526
[email protected]

Source: Fitch Ratings

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