RANKING OF INSURANCE GROUPS

Transcription

1 RANKING OF INSURANCE GROUPS IN LATIN AMERICA 2014 Insurance and Social Protection Area November 2015

2 TABLE OF CONTENTS 1. Introduction 2. Total 3. Non-Life 4. Life 5. of local and international insurance groups 6. Methodology 2

3 Partial reproduction of the information contained in this study is permitted provided that the source is cited. Fundación MAPFRE Pº de Recoletos, Madrid Telephone:

4 1. Introduction Fundación MAPFRE hereby presents the ranking by premium volume of the 25 largest insurance groups in Latin America for the thirteenth straight year. This year's edition refers to 2014 and on this occasion comprises three rankings: Total, Life and Non-Life. In addition, included separately is the information on local insurers and international groups established in the region TOTAL Groups Country Premiums (millions of euros) % Market share 2014 (%) BRADESCO Brazil 9,914 9, MAPFRE Spain 8,875 9, BRASILPREV Brazil 7,108 9, ITAÚ UNIBANCO Brazil 7,442 6, ZURICH Switzerland 5,523 5, METLIFE United States 4,318 4, PORTO SEGURO Brazil 3,568 3, LIBERTY MUTUAL United States 3,203 3, SURAMERICANA Colombia 2,391 2, CNP France 2,537 2, GRUPO NACIONAL PROVINCIAL Mexico 2,256 2, Axa France 2,274 2, ALLIANZ Germany 2,373 2, ACE Switzerland 1,513 1, TRIPLE-S Puerto Rico 1,714 1, MERCANTILE GROUP Venezuela 1,286 1, GENERAL Italy 1,614 1, BBVA Spain 1,310 1, CARDIF France 1,204 1, SUL AMÉRICA Brazil 1,387 1, MCS United States 1,073 1, BANAMEX Mexico 1,141 1, TALANX Germany 1,153 1, SANCOR Argentina 1,255 1, INBURSA Mexico 1,482 1, Total Top 10 54,879 56, Total Top 25 77,914 79, Total Sector 125, ,

5 2. Total In 2014, the 25 largest insurance groups in Latin America took in 79,664 million euros in premiums, representing an increase of 2.2 percent over the previous year. The first ten groups showed slightly higher growth, 2.6 percent, and accumulated 44 percent of the market revenue. As happened in 2013, with the euro stronger against local currencies, the growth in premium volume in euros of these groups was lower; in some cases there was even a decrease resulting from increases in local currency. The impact was particularly significant in Argentina and Venezuela due to the sharp devaluation of their currencies. Bradesco continues to lead the overall ranking of premiums in 2014, with a production of 9,989 million euros and a market share of 7.8 percent. The Brazilian insurance business group grew 9 percent in local currency and 0.8 percent in euros. The momentum comes mainly from the Automobile insurance line, but also Life insurance and Social Protection. MAPFRE ranks second in the standings with 9,189 million euros in premiums and a market share of 7.2 percent, one tenth more than the previous year. The positive development of the group in 2014 reflects good growth in local currencies in most countries where it operates, as a result of commercial initiatives developed during the year, which in Brazil has been accompanied by the growing contribution of the Banco do Brasil network, primarily in life insurance. Brasilprev, an investee company of Principal Financial Group and Banco do Brasil, improved its position in the ranking, climbing to third place, thanks to a significant increase of 28 percent (39 percent in local currency) in its premium volume. This was the highest growth experienced by a company listed in the ranking. The insurance portfolio of this entity is composed entirely of the product Vida Generador de Beneficio Libre (VGBL), driving force behind growth in life insurance in Brazil in recent years. The extraordinary peformance of Brasilprev and fall in premiums of Itaú Unibanco moves the latter to fourth place with a share of 5.1 percent, eight points less than in This decrease is related to the agreement signed in July 2014 with the ACE group for the sale of all shares of Itaú Seguros Soluções Corporate, the subsidiary of the group that ran operations for high risk insurance. The sale was completed in October 2014, after obtaining all necessary approvals. The following four groups maintain the same position as last year, in this order: Zurich, Metlife, Porto Seguro and Liberty. In the case of Zurich, premiums fell by 4.4 percent as a result of uneven performance: on the one hand the gross premiums grew in Argentina and Venezuela, due to inflation, and in Brazil thanks to new distribution agreements. Furthermore, this increase was offset by a reduction in premiums in Mexico and life insurance in Chile because 2013 included the effect of a large corporate contract. In the case of Metlife, the 1.5 percent decrease in revenue came from its subsidiaries in Argentina, Brazil and Chile. The insurance operations at the brazilian Porto Seguro grew 4.8 percent in 2014, particularly Auto premiums. It also highlights the expansion of premium in Companies and Home products. Liberty also increases their income, up 6.8 percent, thanks to the extraordinary growth of its business in Venezuela, which 5

6 offset the decline in Brazil, Colombia and Puerto Rico as well as the sale of its subsidiary in Argentina to the U.S. group Kranos Capital, which will operate under the brand Integrity Seguros Argentina. South America advances CNP in the rankings to ninth thanks to a 2.6 percent increase in revenue, boosting its business in Colombia, El Salvador, Mexico and Panama. A reduction in CNP VGBL product sales in Brazil is one of the main causes of the fall in premiums of the French group, which now occupies tenth position. However, the CNP non-life segment showed a very positive performance. These first ten groups accumulate a share of 44 percent of the insurance market in Latin America and its growth, 2.6 percent, was slightly higher than the sector, 1.5 percent. The remaining 15 groups recorded higher movements, among which include: the increase of eight positions for MCS, thanks to health premiums in Puerto Rico; the rise of five places by Mercantil, Cardif and Banamex; and decline of eight places by Inbursa, because the performance of the premium volumes of the company is heavily influenced by the biannual PEMEX accounting policy, which was renewed in June

7 3. Non-Life The 25 largest insurance groups in the Non-Life sector in Latin America accumulate 60 percent of premiums in the region and in 2014 obtained a turnover of 41,371 million euros, representing an increase of 1.1 percent on income earned the previous year. MAPFRE once again tops this ranking and earns two tenths of market share to 9.7 percent. Its revenue grew in almost all countries in which it operates in both local currency and euros. Porto Seguro followed with a share of 5.1 percent. The Brazilian group's Non-Life premiums rose by 4.1 percent in 2014 thanks to the efforts of the automobile insurance line. The following five groups, Liberty, Zurich, Bradesco, Allianz and AXA, maintain the same position as the previous year. The first three experienced increases in premium volume, while the last two showed declines. For Allianz, the markets that experienced declines were Brazil and Mexico, and in the case of Axa, the cause must be sought in the lower revenues from its Mexican insurance, mainly due to the Automobile Insurance line In the following positions three increases occur: the Mercantil group goes up from twelfth to eighth place thanks to the exceptional increase in premiums (69.1 percent in local currency), heavily influenced by the country's high inflation, which was 68.5 percent in Grupo Nacional Provincial and ACE improve one position each, and are in ninth and tenth place. These first ten groups totaling about 26 billion euros in premiums, up 4.4 percent over the previous year, three percentage points higher than the growth of the 25 groups that are part of this ranking. Highlights of the other groups include: the increase of four places for Talanx, to thirteenth, because of on the one hand, the positive performance of its subsidiaries in Brazil and Mexico, and on the other, the decrease of their predecessors in 2013, RSA, SulAmérica, Inbursa and Sancor. As already mentioned above, the decline in Inbursa was due to accounting during 2013 of the PEMEX biennial policy. SulAmérica grew in local currency, but the depreciation of the Real against the Euro is causing the lower premium volume for this entity. The RSA decline has influenced the plight of some of its markets and the restructuring, in part, of its business. In regard to Sancor, in 2014 the two main companies of the group in Argentina had a significant growth in its turnover. However, premiums expressed in euros decreased. Premiums rose in its other markets: Paraguay, Uruguay and the subsidiary company created in 2013 in Brazil. Importantly, the growth of Tokio Marine (17.7 percent), CNP (15 percent), Horizonte (12.2 percent) and Quálitas (10.5 percent). Finally, other noteworthy news is the incorporation of Yasuda Marítima, a subsidiary of Sompo Japan Nipponkoa Group, in twenty-fifth position, the place occupied by Suramericana in

8 2014 NON-LIFE Groups Country Premiums (millions of euros) % Market share 2014 (%) 1 MAPFRE Spain 6,404 6, PORTO SEGURO Brazil 3,390 3, LIBERTY MUTUAL United States 3,049 3, ZURICH Switzerland 2,295 2, BRADESCO Brazil 2,116 2, ALLIANZ Germany 1,913 1, Axa France 1,817 1, MERCANTIL Venezuela 1,267 1, GRUPO NACIONAL PROVINCIAL Mexico 1,308 1, ACE Switzerland 1,288 1, ITAÚ/UNIBANCO HOLDING Brazil 1,809 1, GENERALI Italy 1,368 1, TALANX Germany 1,127 1, SUL AMÉRICA Brazil 1,209 1, RSA United Kingdom 1,228 1, SANCOR Argentina 1,139 1, HORIZONTE Venezuela 952 1, AIG United States 1,010 1, TOKIO MARINE Japan 855 1, QUÁLITAS Mexico QBE Australia 1, INBURSA Mexico 1, LA OCCIDENTAL Venezuela CNP ASSURANCES France YASUDA MARÍTIMA Japan Total Top 10 24,848 25, Total Top 25 40,931 41, Total Sector 67,569 68,

9 4. Life The volume of income of the top 10 Life insurance groups in Latin America amounted to 37,428 million euros, representing 64 percent of premiums in the market. Its growth, 3.2 percent, outperformed the market, 1.1 percent, and that of all groups that make up this ranking, 0.8 percent. Due to the significant weight of Brazilian life insurance, the movements in this ranking are greatly influenced by the conditions of said market. Although life insurance in Brazil was up 13 percent in 2014, the euro's appreciation against the real has been the cause of lower growth and even some declines. The performance of insurance in Mexico and Puerto Rico is also important to understand the progress of these groups. The extraordinary progress of Brasilprev puts it at the head of the ranking for Life for the first time, with a premium volume of 9.1 billion euros and a market share of 15.5 percent, two percentage points higher than that obtained in Bradesco, the undisputed leader in previous years, shows a slight decrease in premiums despite the growth in local currency. The following positions are occupied by Itaú Unibanco, Metlife, Zurich and MAPFRE, the same groups and in the same order as last year. The changes are after seventh place, and there are only three groups that retain the same position: Grupo Nacional Provincial, Consorcio and CorpGroup Vida. Note the positive performance of the Mexican Banamex (+18.6 percent), favored by the banking distribution channel and by product innovation, and the Spanish BBVA (+18.5 percent), under the impetus of its business in Chile and Mexico; the latter is the largest market in the region. This performance occurred even though the growth of life insurance in Mexico was moderate (5.9 percent). Conversely, the largest decrease was Humana, 50.7 percent due to the loss of Medicaid contracts in Puerto Rico in late

10 2014 Life Groups Country Premiums (millions of euros) % Market share 2014 (%) 1 BRASILPREV Brazil 7,108 9, BRADESCO Brazil 7,798 7, ITAÚ UNIBANCO Brazil 5,633 5, METLIFE United States 3,828 3, ZURICH Switzerland 3,228 2, MAPFRE Spain 2,471 2, SURAMERICANA Colombia 1,704 1, TRIPLE-S Puerto Rico 1,599 1, CNP France 1,824 1, MCS United States 1,073 1, BANAMEX Mexico 993 1, BBVA Spain 922 1, MMM HEALTHCARE United States 1,303 1, GRUPO NACIONAL PROVINCIAL Mexico HSBC United Kingdom 1, NEW YORK LIFE United States CARDIF France CONSORCIO Chile Axa France ICATÚ Brazil FIRST MEDICAL HEALTH PLAN United States ALLIANZ Germany HUMANA United States PENTA Chile CORP GROUP VIDA Chile Total Top 10 36,266 37, Total Top 25 46,988 47, Total Sector 57,942 58,

11 5. of local and international insurance groups The market share accumulated by local insurance groups is five points higher than international groups and revenues approaching 40 billion euros. Bradesco continues to lead the ranking of local groups followed by Brasilprev that is also Brazilian, Itaú and Porto Seguros. Other noteworthy news is the entry of Mercantil group in the ranking, which is in eighth place, and Banamex, in tenth position of Local Insurance Groups in Latin America 2014 TOTAL Groups Country Premiums (millions of euros) % Market share 2014 (%) 1 BRADESCO Brazil 9,914 9, BRASILPREV Brazil 7,108 9, ITAÚ UNIBANCO Brazil 7,442 6, PORTO SEGURO Brazil 3,568 3, SURAMERICANA Colombia 2,391 2, GRUPO NACIONAL PROVINCIAL Mexico 2,256 2, TRIPLE-S Puerto Rico 1,714 1, MERCANTILE GROUP Venezuela 1,286 1, SUL AMÉRICA Brazil 1,387 1, BANAMEX Mexico 1,141 1, Total Top 10 38,207 39, Total Sector 125, ,

12 MAPFRE leads the ranking of international groups operating in the region. The Spanish group has subsidiaries in all Latin American countries except Bolivia. The groups that make up the ranking are the same as in 2013 and the only companies to have changed places are ACE and Generali: the first goes up to eighth and Generali drops to ninth of international insurance groups in Latin America 2014 TOTAL Groups Country Premiums (millions of euros) % Market share 2014 (%) 1 MAPFRE Spain 8,875 9, ZURICH Switzerland 5,523 5, METLIFE United States 4,318 4, LIBERTY MUTUAL United States 3,203 3, CNP France 2,537 2, Axa France 2,274 2, ALLIANZ Germany 2,373 2, ACE Switzerland 1,513 1, GENERALI Italy 1,614 1, BBVA Spain 1,310 1, Total Top 10 33,540 33, ,3 Total Sector 125, ,

13 6. Methodology The information contained in this report was prepared using the same method as previous years. Data was obtained from information published by the insurance authorities in the various countries and the premium volume for each group represents the sum of the premiums issued in each country. The mergers and acquisitions announced over the course of the year were taken into account when calculating the data. It is essential to emphasize that there is a certain complexity when preparing reports of this nature due to the fact that what constitutes Life and what constitutes Non Life varies from country to country. In general, and whenever possible, the Healthcare and Accident lines have been included in the Non-Life lines, though this criterion cannot apply, for instance, in Puerto Rico, where the Disability (Healthcare) line is considered to fall within the Life insurance business. In fact, the largest insurance companies for Life and Healthcare in Puerto Rico are primarily Healthcare insurance providers, and some of them rank among the 25 largest Life insurance groups in Latin America. Furthermore, in Brazil they have not taken into account contributions from Previdencia Privada nor Health insurance premiums - under the control of the Agência Nacional de Saúde Suplementar (ANS) - and Capitalization. In Argentina annuities and retirement insurance are not included, and in Mexico pensions are excluded. The average yearly conversion rate was used to convert data from other currencies to Euros. Growth rates are calculated on income in euros. 13