Financial performance of Paraguayan Insurers - 2024.06 Rankings

The insurance market in Paraguay, as of the financial results for June 2024, has shown significant growth and stability, as evidenced by our latest market research report analysis. This research, which evaluates the quarterly financial statements of all insurance companies in the country, presents key figures indicating trends across various sectors.

    

Source: INSURANCE MARKET IN PARAGUAY FINANCIAL STATEMENTS 2024.Q2 REPORT

   

The insurance market in Paraguay has experienced significant growth over the past decade, as evidenced by an analysis of the premiums collected during this period. In 2014, the total premiums in the market amounted to 1.754 billion Guaraníes. By 2024, this figure had grown to 3.881 billion Guaraníes, representing a substantial increase of 121.29%. This growth underscores the expansion of the insurance sector in Paraguay, driven by a variety of factors, including increasing consumer demand, economic growth and stability, and greater awareness of the importance of insurance coverage.

    

    

When expressed in U.S. dollars, the growth of the market appears more modest, but still notable. In 2014, total premiums were valued at 407 million USD. By 2024, this figure had risen to 515 million USD, reflecting an increase of 26.48%. The smaller percentage increase in dollar terms can be attributed to exchange rate fluctuations over the decade, which have impacted the conversion of Guaraníes to U.S. dollars. Despite this, the steady rise in premiums highlights the overall positive trajectory of the insurance sector in Paraguay.

   

  

The decade-long expansion of the insurance market in Paraguay demonstrates both the resilience and the adaptability of the industry. It indicates not only the growing importance of insurance in the lives of Paraguayans but also the capacity of insurance companies to respond to the evolving needs of the population. This growth sets a strong foundation for further development in the years to come.

   

For the period ending in June 2024, direct premiums in the insurance sector reached 3.882 billion Guaranies, representing an 11.7% increase compared to the 3.476 billion recorded in the same period of 2023. This rise in premiums underscores the sector's expansion and growing demand for insurance products. Simultaneously, net incurred claims amounted to 1.086 billion Guaranies, a 5.6% increase from the previous year's 1.028 billion. This moderate rise in claims suggests a controlled risk environment, which is further reflected in the improvement of the sector's technical results.

The gross technical result improved by 19.4%, reaching 1.779 billion Guaranies compared to 1.490 billion in 2023. More impressively, the net technical result saw a significant increase of 59.4%, standing at 318 billion Guaranies versus 199 billion in the previous year. This sharp rise highlights the improved operational efficiency within the sector. Moreover, investment results also experienced a notable growth, rising 31% to 240 billion Guaranies from 183 billion in June 2023. This reflects the sector’s effective asset management strategies, which have contributed to the overall performance. The total result for the period reached 537 billion Guaranies, a 46.5% increase from the 367 billion recorded the previous year.

 

In terms of market demand, the volume of premiums continued to grow. The non-life insurance sector, which encompasses various categories, grew by 12%, with premiums rising from 2.736 billion to 3.060 billion Guaranies. Among the key subcategories, automobile insurance premiums increased by 10%, from 1.466 billion to 1.618 billion Guaranies, illustrating the strong demand for vehicle coverage. Passenger accident insurance experienced a 6% growth, and agricultural insurance saw a slight decline of 4%. Other sectors such as aeronautics, which saw a 19% growth, and technical insurance, with a remarkable 42% increase, also contributed to the sector's expansion. Additionally, personal accident insurance rose significantly by 46%, reflecting heightened consumer interest in individual protection.

    
Life insurance saw an overall increase in premiums, growing by 11%, from 739 billion to 821 billion Guaranies. Within this sector, accident insurance experienced the highest growth at 46%, while life insurance itself rose by 3%.

Regarding the market share, several insurance companies have demonstrated remarkable growth. Royal led the sector in terms of market share growth, increasing by 2.14%. Aseguradora Yacyretá followed with a 1.69% increase, and Alianza Garantía achieved a growth of 0.83%. Other notable increases were seen from Itaú Seguros (0.63%) and Atlas de Seguros (0.23%). These insurers have expanded their influence in the market, gaining a stronger foothold compared to the previous year.

Looking at the overall market share distribution, the five leading companies continue to dominate the sector. Mapfre Paraguay holds the largest share at 14.0%, followed by Aseguradora del Este with 11.4%, and Aseguradora Yacyretá with 7.5%. La Consolidada and Aseguradora Tajy round out the top five with shares of 6.6% and 5.9% respectively. Together, these five companies account for 45.3% of the total market, reflecting the concentration of power among the leading players.

    

In terms of financial results, Itaú Seguros recorded the highest net result for the period, with a total of 87 billion Guaranies. Patria closely followed with 85 billion Guaranies, while Mapfre Paraguay achieved 63.7 billion. Familiar and Aseguradora del Este also performed strongly, with results of 39.4 billion and 36.7 billion Guaranies, respectively. These companies stand out not only for their market share but also for their profitability, indicating robust financial health within the industry.

 

 

     

 Among the companies with the most significant growth in their final results, Itaú Seguros leads the market with an increase of 36.9 billion Guaraníes. Mapfre Paraguay follows closely with a substantial growth of 34.9 billion Guaraníes in its final result. Aseguradora del Este also experienced a noteworthy increase, with a growth of 12.1 billion Guaraníes in its final result. Aseguradora Yacyretá and Aseguradora Paraguaya complete the list of top performers, with increases of 11.4 billion and 10.4 billion Guaraníes, respectively. 

The overall growth seen across these five leading insurers highlights the robustness of Paraguay's insurance market and the capacity of its key players to achieve significant financial improvements year over year.

   

Source: INSURANCE MARKET IN PARAGUAY FINANCIAL STATEMENTS 2024.Q2 REPORT

  

Overall, the insurance market in Paraguay has demonstrated solid growth, increased operational efficiency, and effective investment strategies, as evidenced by the positive financial results in the first half of 2024. The sector continues to evolve, with key players reinforcing their positions and contributing to the market’s expansion.

  

RK # 1 - Market Share 14%