DUBLIN--(BUSINESS WIRE)-- Research and Markets (http://www.researchandmarkets.com/research/3lqgwh/brazil_insurance_r) has announced the addition of the "Brazil Insurance Report Q3 2012" report to their offering.

BMl's Brazil Insurance Report provides industry professionals and strategists, corporate analysts, insurance associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Brazil's insurance industry.

As of April 2012, the latest data from Brazil' s leading insurance companies (in relation to calendar 2011 and Q411) confirms our view that the country is home to one of the world' s most dynamic and rapidly growing insurance sectors. Overall premiums are growing at double-digit rates because a) the openness of the market to entry by major multinationals, b) because of the growth in the numbers of households that can afford to buy insurance (and/or to save for the long-term) and c) because of the continuing downwards trend in inflation, interest rates and risk premia attached to investments.

In the introduction to our Q211 report, we highlighted how the largest Brazilian insurers are open to dealmaking. Bank distribution accounts for about 40% of all insurance sales in the country and, as such, is often a key to success: this explains the strategic partnerships between Zurich and Santander and between Mapfre and Banco do Brasil (as well as the long-standing commercial links between Porto Seguro and Itaú Unibanco). Put another way, the banks have the imagination to recognise the opportunities that are available from Open Architecture - the distribution of products that are sourced from unrelated suppliers. This quarter, we would also stress that the various players are taking active and positive steps to develop their own brands, to invest in platforms and systems, to improve underwriting and profitability and to introduce new products.

The extremely upbeat reports that were published over the course of Q111 confirm our view that prospects for the life segment are more exciting than those for the non-life segment. The Q411 results published by the leading Brazilian insurance companies (mainly in November last year) point to rises in life premiums (from conventional life insurance, pension plans, VGBL and PGBL products as well as Capitalização savings bonds) of around 20% or more relative to the corresponding periods of 2010. The details of the results point to strong (ie in excess of 30%) returns on capital and improvements to margins thanks to discipline in pricing of risks and claims management. Over the medium-term, the only constraint on growth is the ability of Brazilian insurers to raise new capital to support this business: the insurance sector will remain a major beneficiary of financial stability.

The main challenge for Brazil' s non-life insurers remains the competitive pressures in auto-related lines - a problem in many of the markets monitored by BMI. Prices are not rising as fast as claims and other expenses. However, the prospects for growth in all other lines remain excellent. The expansion of health insurance, for instance, is being driven by larger numbers of customers, rising prices and the introduction of new products. Micro-insurance and lines which have obvious relevance to Brazil, such as agricultural insurance, are evolving rapidly from small bases. Unsurprisingly, a number of multinationals have indicated an interest in opening or expanding their businesses in Brazil.

Companies Mentioned:

- Bradesco

- Brasilveículos

- Itaú Seguros

- Porto Seguro

- SulAmérica

- Allianz

- BNP Paribas Cardif

- CNP

- Generali

- ING

- Liberty Mutual

- Mapfre

- MetLife ALICO

- New York Life

- Prudential Financial

- QBE

- RSA

- Zurich

For more information visithttp://www.researchandmarkets.com/research/3lqgwh/brazil_insurance_r

Research and Markets
Laura Wood, Senior Manager.
press@researchandmarkets.com
U.S. Fax: 646-607-1907
Fax (outside U.S.): +353-1-481-1716
Sector: Insurance

Source: Research and Markets