BMI's Executive Summary for the Brazil Insurance Report

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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 nonlife 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.

Contents of the Brazil Insurance Report

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Chapter 1 - The Sector At A Glance

Table: Overview

Key Features Of This Report & Likely Future Changes

Chapter 2 - Latest news

Recent Developments

Chapter 3 - Evolution Since The Mid-1990s

Table: Evolution Of The Insurance Sector (in millions of currency specified)

Evolution

Chapter 4 - Projections And Forecasts

Table: BMI Projections (in millions of currency specified)

Projections And Drivers Of Growth

Chapter 5 - Macroeconomic Outlook

Table: Economic Activity - Historical Data And Forecasts

Chapter 6 - Country Update

Political Risk - Point Of No Return

Economic Risk Targeted Spending

Business Environment Improving The Debt Profile

Chapter 7 - Analysis of Competitive Conditions

Country Overview Brazil - Non-Life Segment

Table: Non-Life Segment Rankings of Markets

Table: Presence Of Cross-Border Insurers Non-Life

Table: Selected Local Non-Life Insurers

Country Overview Brazil - Life Segment

Table: Life Segment Rankings of Markets

Table: Presence Of Cross-Border Insurers Life

Table: Selected Local Life Insurers

Whos who in the Latin American region?

Chapter 8 - Regional Context

Table: Regional Context Premiums

Table: Regional Context Total Premiums

Chapter 9 - Methodology And Objectives

Introduction

Background

Forecasts

Chapter 10 - Appendix

Table: Latest Estimates / Actual Figures For 2005

Table: Latest Estimates For 2010

Table: Latest Estimates For 2005-2010

Competitive Landscape for Latin America Insurance Reports: Sample       of Companies Ranked

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A cross-border overview of key players and their insurance market share across Latin America. Tables and graphs show country presence of multinationals across the region. Comparative company analyses and rankings by premium income (life and non-life). Company SWOTS for leading life and non-life insurers, covering network of offices, presence of foreign stakeholders, strategic relationships, joint ventures; portfolio of clients; diversity of product range; profit growth, investment strategy and risk exposure.

Network of Insurance Sources

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BMI's Latin American Insurance Reports are based on an extensive network of multilateral organisations, government departments, insurance industry associations, chambers of commerce and company reports. Information sources include:

Read about our other Insurance Reports