Non-Life Insurance Market in Brazil Expected to Show Strong Growth According to New Report

Date : 05/05/2008 @ 9:00AM
Source : Business Wire
Click here for ADVFN's up to the minute news service. Access our extensive collection of financial news from around the world including US, Europe and Asia.
<< Back

 



Non-Life Insurance Market in Brazil Expected to Show Strong Growth According to New Report

Research and Markets (http://www.researchandmarkets.com/reports/c90725) has announced the addition of Brazil Insurance Report Q1 2008 to their offering.

The Brazil Insurance Report provides independent forecasts and competitive intelligence on Brazil's insurance industry.

This report differs from its predecessors in that it includes BMI’s Insurance Business Environment Rating (IBER). The rating brings together a number of pieces of relevant quantitative data, together with BMI’s Country Risk Rating (CRR). It is now much easier to consider the business environment for the insurance sector in any one country relative to the business environment for other industries in that country that are surveyed by BMI, and the business environment for the insurance sector in other countries.

Brazil’s IBER is 66.4. This is the highest IBER in the Caribbean and Latin American markets. Within the region, Brazil stands out for the current size of the non-life segment and the likely absolute growth in non-life premiums. The same holds true for life-premiums. However, the IBER is held back by the urgent need for taxation reform, and the real political risks associated with implementing the necessary reform. Over the forecast period, we anticipate that non-life premiums will grow by 10% annually in local currency terms and by 12% in US dollar terms. Life premiums are expected to increase by 8% annually in local currency terms and by 11% in US dollar terms. The key driver of growth is coming from the non-life premium. While there will still be a significant increase in life premiums, they are forecast to have a much lower annual growth rate.

The competitive landscape, in both the non-life and the life segment, is fragmented. Given its size, there are a very large number of foreign competitors. Brazil has many foreign companies operating in the market that are not present in other countries in the region, signifying that it is seen as a safer entry option into the region. It is unclear what business strategy is most likely to be pursued by market competitors. An attractive option for foreign companies may be to consolidate. Given the number of competitors there are good acquisition possibilities. Alternatively, niche growth strategies may continue to be pursued. It is unlikely in BMI’s view that we will see many new market entrants.

The strong predicted growth for Brazil and relatively stable political environment continue to make Brazil an attractive investment option; although there is concern that the Lula government will not be able to give effect to necessary taxation reform. The non-life insurance market has a strong base and is predicted to have high levels of growth. This is the main driver of the high IBER score for Brazil, relative to the other countries surveyed by BMI in the Caribbean and Latin American region.

For more information visit http://www.researchandmarkets.com/reports/c90725

<< Back



LSE and PLUS quotes are live. NYSE and AMEX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions :: Contact Us :: Request an Exchange :: Affiliate Scheme
Copyright1999-2008 ADVFN PLC. Copyright and limited reproduction :: Privacy Policy :: Investment Warning :: Advertise with us :: Data accreditations :: Investor Relations :: Press office :: Jobs
ADDITIONAL SERVICES AVAILABLE FROM ADVFN
Upgrade - Click here for more information on ADVFN premium services Money Words - ADVFN Financial Glossary Investor Training ADVFN Financial Bookshop Online Training Academy
34 site:2us 080906 13:42 Stock Message Boards ( 2001 | 2002 | 2003 | 2004 | 2005 | 2005 | 2007 )