Insurers’ profits rise 44% to top US$100mn

Premium income reached US$770.1mn, up 16.5%, thanks to the dynamic development of the Central American economies • Argentina • Uruguay • Brazil • Colombia

Fitch Ratings published its report on the Central American insurance industry’s activities during the first half year of 2007. Net profits reached US$100.1mn, 44% more than in 2006. ROE was 26.9%, 2.5% above 2006. The major growth of net premiums and favourable behaviour of operation expenses explain the higher profitability of the industry. Another major factor - the increase in investments arising from a wider cover of underwriting reserves – was reflected in a stable contribution to the 2007 financial results.