Sharp rise in the level of foreign ownership in the market likely to put pressure on local companies to be more profitable

In 2006 and 2007 the structure of the Salvadoran market changed radically. Most of the local financial groups involving banks and insurance companies were purchased by foreign banks or financial groupings. There are currently only three insurance companies in local hands

As at December 2006 17 companies were authorised in El Salvador; of these three were owned by a majority of Salvadoran shareholders, one was the branch of a foreign insurer and the remainder were majority foreign-owned.