Market closes 2005 with flat premiums and earnings down 24%

The Chilean economy is booming but insurers are seeing little benefit as low investment returns pressure profits

Despite a buoyant economy, which grew by 6.3% last year, the Chilean insurance industry ended 2005 with flat premiums and substantially lower earnings. Total premiums declined by 0.5 % in real terms to US$4.52bn, whereas earnings plunged by 23.7% to $269mn.