La Boliviana Ciacruz Seguros y Reaseguros - Moody's

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Company Profile
Analyst Contacts:
Buenos Aires 54.11.4816.2332
3 Diego Nemirovsky
Associate Analyst
3 Alejandro Pavlov
Vice President/Senior Analyst
New York 1.212.553.1653
0 Alan Murray
Senior Credit Officer
0 Robert Riegel
Team Managing Director
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presents a convenient summary of as reported, publicly
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and Analytics on this company, please [Click here].
October 2007
Moody’s
Insurance
La Boliviana Ciacruz Seguros
y Reaseguros
La Paz, Bolivia
Company Overview
La Boliviana Ciacruz de Seguros y Reaseguros S.A.(“LBC”) is based in La Paz,
Bolivia and belongs to the international Zurich Financial Services (ZFS) group,
which holds 51% of LBC’s equity. In Bolivia, ZFS also manages and owns a life
company “Zurich Personales” and a pension fund “Futuro de Bolivia”. The
company is present in the most important cities of the country with branches in
Cochabamba, Santa Cruz, Oururo and other significant urban centers.
La Boliviana focuses on underwriting and distributing a full range of property and
casualty insurance products to a broad cross section of commercial and noncommercial
enterprises and consumers, through a diverse distribution network.
From 2002 to 2006, LBC has shown a slight decrease of 0.7% annually, on
average, in its gross written premiums. However, the company has grown at an
8.3% annual rate, on average, in terms of net written premiums. This expansion (in
net premium terms) was accomplished over the past five years along with a track
record of profitability and positive underwriting results.
As of December 31, 2006, LBC reported net written premiums of Bs$121 million,
an increase of 22% from Bs$99.1 million in the previous year, and shareholders’
equity was Bs$86.3 million, up 3.5% from Bs$83.4 million reported last year.

Company Profile Moody’s Insurance
La Boliviana Ciacruz Seguros y Reaseguros
Financial Highlights (as Reported)
Note: The financials presented below are those reported by the entity and are not adjusted for Moody’s analytic purposes.
For Moody’s generated ratios on La Boliviana Ciacruz Seguros y Reaseguros, please see Moody’s Credit Opinión on .
La Boliviana Ciacruz Seguros y Reaseguros
(In Bs$ million) 2006 2005 2004 2003 2002
Gross Premiums Written 260 218 230 234 269
Net Premiums Written 121 99 71 72 81
Net Income 11 8 8 10 9
Cash & Investments 162 154 136 137 136
Total Assets 216 268 249 189 209
Total Reserves 56 55 41 36 34
Shareholder's Equity 86 83 83 82 78
Note: FYE December 31
Business Activities
2006 Gross Premiums Written By Line
General Liability
17%
Other P&C lines
19%
Engineering
15%
2 July 2007 � Company Profile � Moody’s Insurance - La Boliviana Ciacruz Seguros y Reaseguros
Automobile
18%
Fire and Allied
Lines
31%
Within Bolivia, LBC sells a broad range of personal and commercial insurance products to commercial and
non-commercial enterprises and consumers. Business is written primarily through a network of brokers, as
well as independent and exclusive agents.
The company focuses on the corporate market segment, granting coverage to gas pipelines and related
infrastructure, highway construction and power generation enterprises, among others, which reflect the
significant growth in commercial property, including the fire and allied, as well as engineering lines. The
company has also begun to target clients in the general commercial market segment.
LBC also writes a considerable portion of its business in personal lines, primarily in the automobile segment.
This line of business comprises typical coverages of vehicle’s damage, theft and third party liability, and in
some cases also includes a personal accident rider.

Company Profile Moody’s Insurance
La Boliviana Ciacruz Seguros y Reaseguros
La Boliviana Ciacruz Seguros y Reaseguros - Segment
Detail (Bs$ Mil.)
Gross Premiums Written
3 July 2007 � Company Profile � Moody’s Insurance - La Boliviana Ciacruz Seguros y Reaseguros
2006 2005 2004 2003 2002
Automobile 46 39 41 40 40
Fire and Allied Lines 82 74 84 102 91
Engineering 38 26 26 30 34
General Liability 44 32 41 32 31
Other P&C lines 50 47 38 31 73
Total Operations 260 218 230 234 269
Reserves
Automobile 21 23 24 23 22
Fire and Allied Lines 8 10 5 3 2
Engineering 9 6 2 2 2
General Liability 3 4 1 1 0
Other P&C lines 15 13 9 7 8
Total Operations 56 55 41 36 34
Acquisition Costs
Automobile 10 8 7 6 5
Fire and Allied Lines 6 7 5 4 4
Engineering 2 2 2 2 1
General Liability 1 1 1 1 1
Other P&C lines 4 4 4 4 3
Total acquisition costs 23 21 19 17 14
Non - allocated expenses 43 42 40 46 47
Total Expenses 66 64 59 63 61
Note: FYE December 31
Distribution Channels
LBC’s products are sold predominantly through the company’s own sales force and brokers. In some
instances, brokers and the company’s in-house sales force act as wholesale intermediaries between the
company and other sales channels such as bank-assurance, financial institutions, and other non-traditional
distribution sources; however, this particular method of distribution is not yet significant.

Company Profile Moody’s Insurance
La Boliviana Ciacruz Seguros y Reaseguros
Gross Premium Written by Distribution Channels - 2006
Own sales force
29%
Independent
Agents
9%
4 July 2007 � Company Profile � Moody’s Insurance - La Boliviana Ciacruz Seguros y Reaseguros
Brokers
62%
Organization Structure and Ownership
Zurich Financial services is the ultimate parent holding company, which owns 51% of LBC. Another 41.5% of
the shares are held by the President and CEO of the company, Mr. Gonzalo Bedoya H. The remaining 7.50%
of shares is owned by other minor shareholders.

Company Profile Moody’s Insurance
La Boliviana Ciacruz Seguros y Reaseguros
Management Information
Name Current Title
Gonzalo Bedoya Herrera President and CEO
Jorge Marín Vice President
Nilton López CFO
Armando Gumucio Karstulovic Secretary
Company History
The company began operations in Bolivia in 1946 under the name “Compañía Boliviana de Seguros S.A.”. It
has had different shareholders during its history, including other Bolivian companies and Peruvian investors. In
2000, an agreement was signed to incorporate with the Zurich Financial Services group, which is now the
principal shareholder of the company.
This agreement led to significant improvements for the company. Among them were the transfer of technology
and know–how from the international group, which helped LBC to improve efficiency and competitiveness, and
the injection of fresh capital from the parent company to enhance the company’s solvency. This affiliation with
Zurich also enhanced the quality and diversity of the company´s products, leveraging the experience of one of
the world’s leading financial institutions.
Peer Group
� Bisa Seguros y Reaseguros S.A.
� Alianza Seguros y Reaseguros S.A.
� Credinform International S.A. de Seguros
Website
For additional information, please see the company's website: www.boliviana-ciacruz.com
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5 July 2007 � Company Profile � Moody’s Insurance - La Boliviana Ciacruz Seguros y Reaseguros

Company Profile Moody’s Insurance
La Boliviana Ciacruz Seguros y Reaseguros
Moody’s Related Research
Rating Methodologies
� Moody’s Global Rating methodology for Life Insurers, September 2006 (98207)
� Moody’s Global Rating methodology for Property and Casualty Insurers, September 2006 (98046)
Credit Opinions
� La Boliviana Ciacruz de Seguros y Reaseguros S.A.
� Zurich Insurance Company
Analysis
� Zurich Financial Services, October 2007 (105090)
To access any of these reports, click on the entry above. Note that these references are current as of the date of publication
of this report and that more recent reports may be available. All research may not be available to all clients.
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Report Number: 105156
Author Production Associate
Diego Nemirovsky
Shubhra Bhatnagar
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6 July 2007 � Company Profile � Moody’s Insurance - La Boliviana Ciacruz Seguros y Reaseguros