In the first half of 2024, Ecuador's insurance market exhibited varied trends across key performance indicators. The total net premiums issued in June 2024 amounted to $1,054 million, reflecting a slight decrease of 2.99% compared to the $1,086 million recorded in June 2023. The contribution margin, a critical profitability metric, experienced a sharp decline, dropping by 33.05% from $343 million in 2023 to $230 million in 2024.
Regarding claims costs, the insurance industry recorded a minor increase in the cost of claims paid, with the total rising from $303 million in June 2023 to $306 million in June 2024, representing a 0.88% growth. On the intermediation result, there was a significant negative shift, with a loss of $152 million in June 2024, compared to a smaller loss of $34 million in the same period the previous year.
Two key ratios provide additional insight into the industry's financial health. The loss ratio, which compares claims costs to net premiums, increased slightly from 27.9% in June 2023 to 29.0% in June 2024. This indicates that a higher proportion of premiums were used to pay claims. Additionally, the result ratio, which measures the overall result relative to net premiums, worsened significantly, dropping from -3.2% in 2023 to -14.4% in 2024.
Regarding claims costs, the insurance industry recorded a minor increase in the cost of claims paid, with the total rising from $303 million in June 2023 to $306 million in June 2024, representing a 0.88% growth. On the intermediation result, there was a significant negative shift, with a loss of $152 million in June 2024, compared to a smaller loss of $34 million in the same period the previous year.
Two key ratios provide additional insight into the industry's financial health. The loss ratio, which compares claims costs to net premiums, increased slightly from 27.9% in June 2023 to 29.0% in June 2024. This indicates that a higher proportion of premiums were used to pay claims. Additionally, the result ratio, which measures the overall result relative to net premiums, worsened significantly, dropping from -3.2% in 2023 to -14.4% in 2024.
Examining the performance of different types of insurance coverage, several areas saw substantial changes in premium volumes. In the non-life insurance sector, there was a notable decline, with a 9.15% reduction in premiums compared to the previous year. The agricultural insurance segment experienced the largest drop, with a 43.57% decrease in premiums. Fire and allied lines also faced a significant contraction, with premiums down 15.17%.
Other areas that saw decreases include multi-risk insurance, down by 13.77%, and civil liability insurance, which fell by 20.74%. On the other hand, aviation insurance recorded a positive annual growth rate of 13.23%, and vehicle insurance rose by 4.55%. The life insurance sector also showed modest gains, with an overall increase of 6.35%, driven by a 7.59% rise in collective life insurance and a 6.35% increase in individual life policies.
The overall market saw a slight contraction, with total premiums declining by 2.99% compared to the previous year.
In terms of competition, several insurers demonstrated notable growth in their market share in both the life and non-life segments. In the total market for life and non-life insurance, Pichincha led the growth with an increase of 1.3%, followed closely by Sweaden Seguros with 1.2%, Latina Seguros and AIG Metropolitana with 1.1% each, and Chubb Seguros Ecuador with 0.8%.
For life insurance, Aseguradora del Sur was the standout performer, growing its market share by 1.9%. Other life insurers that experienced growth include Pichincha with 0.6%, Ecuatoriano Suiza with 0.5%, and Hispana and BMI, both with an increase of 0.4%.
In the non-life sector, Latina Seguros led the market with a 2.7% increase in its market share, followed by Sweaden Seguros with 2.0%, AIG Metropolitana with 1.7%, Chubb Seguros Ecuador with 1.2%, and Condor, which saw a 0.7% rise.
Overall, the data reveals a dynamic insurance market in Ecuador, with significant shifts in premium volumes across various coverage types and notable changes in market share among leading insurers.
