Market Overview
As of March 2025, the insurance sector in El Salvador continued to show stable growth dynamics. Total premiums reached USD 250.2 million, representing a 9.9% year-on-year increase. This expansion reflects consistent demand across most lines of business, despite certain areas experiencing contractions. The technical result rose sharply by 24.2% to USD 46.9 million, supported by controlled acquisition costs and a notable decrease in financial expenses. The final result for the industry stood at USD 22.2 million, up 25.4% from the same period in 2024, underscoring a resilient and profitable operating environment.
In terms of cost structure, total claims increased 18.9% to USD 108.7 million, outpacing the growth in premiums and highlighting an uptick in risk exposure or claims frequency, particularly in health and auto-related segments. Administrative expenses grew by 10.2% and acquisition costs by 9.9%, aligning closely with revenue trends. However, financial expenses dropped significantly by 45.5%, contributing to an almost doubled financial result, which reached USD 9.5 million.
Competitive Landscape
The Salvadoran insurance market remains moderately concentrated. The top five insurers—SISA, ASESUISA, Aseguradora Agrícola Comercial, MAPFRE, and ASSA—collectively control 72% of the market. SISA leads with a 20.3% market share, closely followed by ASESUISA at 19.8%. Aseguradora Agrícola Comercial holds a solid third position with 15.1%, while MAPFRE and ASSA account for 11.7% and 5.1%, respectively. This concentration suggests limited room for aggressive market disruption in the short term, but also indicates a landscape where strategic shifts by top players can significantly impact market dynamics.
Key Insights
Premium growth was driven mainly by the strong performance of the allied lines segment, which surged 47.6% year-over-year to USD 47.3 million, making it the fastest-growing coverage area. Fianzas (surety) also posted a notable 31.9% increase, reflecting renewed activity in infrastructure and contractual obligations. In contrast, health insurance premiums dropped 12.5%, possibly due to reduced pandemic-related coverage needs or portfolio adjustments by key insurers. Life insurance, which remains the largest segment at USD 60.6 million, showed stable growth of 9.1%.
The industry's strong technical and financial results suggest that insurers are managing claims and investment portfolios effectively, even as claims volumes increase. The sharp decline in financial expenses may be linked to improved capital efficiency or favorable interest rate environments. Overall, El Salvador's insurance market is progressing on a profitable path, supported by diversified premium sources, prudent cost control, and a stable competitive framework led by a few dominant groups.