PA - Banco Security

INSURANCE
INSURANCE INDUSTRY
The Chilean insurance industry closed the year with very good results, in both the life and
general insurance segments. As of September, life insurance companies produced earnings of
Ch$374,630 million and the general insurance companies earnings of Ch$2,679 million. The
insurance industry consists of 30 life companies and 20 general companies. At September 2010,
the ten principal life and general insurance companies controlled 65.2% and 88.5% respectively
of total direct premium.
With respect to life insurance, direct premiums reached Ch$2,073 billion. The individual and
group life segments represent 45.7% of the industry’s total premiums , while pension insurance
accounted for 54.3% of the total. This was despite annuities suffering a sharp fall in their share
since the 1990s. Direct premiums of the general insurance companies amounted to Ch$ 1,010
billion to September 2010.
The return on life insurance companies’ investments in 2010 averaged 5.1%.
The return on equity at September 2010 reached 21.8%, explained by the good returns in 2010
of the stock market which increased the investment income of life companies. The earnings
of general insurance companies to September 2010, which is directly related to the cost of
reinsurance and the characteristics of an operation with more standardized products, was
Ch$2,679 million, thanks to operating cost efficiency and a correct handling of claims.
GENERAL INSURANCE DIRECT PREMIUMS
BILLIONS OF NOMINAL CH$
1,400
1,200
1,000
800
600
400
200
0
2002
2003
SOURCE: CHILEAN INSURERS ASSOCIATION
2004
2005
2006
2007
2008
2009
12 MONTHS
AS OF SEPT-10