The Paraguayan insurance market has shown positive developments as of the period ending in September 2024, demonstrating growth across various key indicators. Based on the recent RankingsLatAm market research, direct premiums reached 1.013 billion Guaranies, marking a year-over-year increase of 10.4%. This growth signifies a strong demand for insurance products in Paraguay, particularly in segments such as life insurance and various non-life policies.
The claims environment has remained relatively stable, with net claims totaling 278 billion Guaranies, a modest increase of 1.4% compared to the previous year. This suggests a managed risk environment with consistent underwriting practices that have kept claims growth well below the pace of premium income. The industry also achieved a gross technical result of 478 billion Guaranies, up by 11.7%, and a net technical result of 86 billion Guaranies, which surged by 23.3%, reflecting improved operational efficiencies among insurers.
Investment returns played a significant role in the sector’s overall financial performance, with investment results climbing by 58.8% to 85 billion Guaranies. This substantial increase indicates a favorable investment climate, likely aided by the broader financial market conditions. Consequently, the industry’s total profit reached 160 billion Guaranies, a robust 37.9% increase year-over-year, further underscoring the resilience and profitability of Paraguayan insurers.
The non-life insurance segment remains the primary contributor to market volume, totaling 797 billion Guaranies with an 8% growth rate. Within non-life categories, agricultural insurance saw the most substantial growth, up 67%, likely driven by increased demand and higher risk awareness in this sector. Passenger accident insurance also experienced significant expansion, rising by 48%, and aviation insurance premiums grew by 23%. The automobile sector, a traditionally strong area, saw premiums of 427 billion Guaranies, reflecting a healthy 9% increase. However, certain lines, such as technical insurance and glass-related policies, contracted by 21% and 13%, respectively, indicating mixed demand in specialized lines.
Life insurance also demonstrated considerable growth, with total premiums reaching 216 billion Guaranies and an annual increase of 18%. This growth signals increased consumer confidence and awareness of life coverage benefits. Additionally, accident insurance grew by 12%, while personal life policies rose by 20%, highlighting a solid expansion in life-related offerings.
The claims environment has remained relatively stable, with net claims totaling 278 billion Guaranies, a modest increase of 1.4% compared to the previous year. This suggests a managed risk environment with consistent underwriting practices that have kept claims growth well below the pace of premium income. The industry also achieved a gross technical result of 478 billion Guaranies, up by 11.7%, and a net technical result of 86 billion Guaranies, which surged by 23.3%, reflecting improved operational efficiencies among insurers.
Investment returns played a significant role in the sector’s overall financial performance, with investment results climbing by 58.8% to 85 billion Guaranies. This substantial increase indicates a favorable investment climate, likely aided by the broader financial market conditions. Consequently, the industry’s total profit reached 160 billion Guaranies, a robust 37.9% increase year-over-year, further underscoring the resilience and profitability of Paraguayan insurers.
The non-life insurance segment remains the primary contributor to market volume, totaling 797 billion Guaranies with an 8% growth rate. Within non-life categories, agricultural insurance saw the most substantial growth, up 67%, likely driven by increased demand and higher risk awareness in this sector. Passenger accident insurance also experienced significant expansion, rising by 48%, and aviation insurance premiums grew by 23%. The automobile sector, a traditionally strong area, saw premiums of 427 billion Guaranies, reflecting a healthy 9% increase. However, certain lines, such as technical insurance and glass-related policies, contracted by 21% and 13%, respectively, indicating mixed demand in specialized lines.
Life insurance also demonstrated considerable growth, with total premiums reaching 216 billion Guaranies and an annual increase of 18%. This growth signals increased consumer confidence and awareness of life coverage benefits. Additionally, accident insurance grew by 12%, while personal life policies rose by 20%, highlighting a solid expansion in life-related offerings.
Among insurers, Alianza Garantía recorded the highest growth in market share, increasing by 1.17%, followed closely by Aseguradora Yacyreta with a gain of 1.06%. Other companies experiencing notable increases included Aseguradora Tajy, Ueno Seguros, and Aseguradora del Este. In terms of overall market share, MAPFRE Paraguay led with 13.2%, followed by Aseguradora del Este with 11.8%, Aseguradora Yacyreta at 7.5%, La Consolidada at 6.6%, and Aseguradora Tajy at 6.4%. Together, these top five insurers accounted for a combined market share of 45.5%, indicating a concentrated market with clear leaders.
When assessing profitability, Itaú Seguros emerged as the top performer, achieving a final result of 26.4 billion Guaranies, followed by Patria with 24.9 billion Guaranies and MAPFRE Paraguay at 16.8 billion Guaranies. Aseguradora del Este and Familiar also ranked among the top five in final results, underscoring their financial stability and operational efficiency.
In terms of growth in final results, Itaú Seguros again led the sector with an increase of 7.9 billion Guaranies, followed by Patria at 6.5 billion Guaranies. Regional, Aseguradora Yacyreta, and Sancor also posted strong gains in final results, reflecting solid performance and growth strategies in their operations.
Overall, the Paraguayan insurance market is experiencing a period of robust growth and profitability. The sector’s resilience is highlighted by solid premium growth, disciplined claims management, and significant investment gains, positioning Paraguayan insurers favorably in the current economic landscape.
When assessing profitability, Itaú Seguros emerged as the top performer, achieving a final result of 26.4 billion Guaranies, followed by Patria with 24.9 billion Guaranies and MAPFRE Paraguay at 16.8 billion Guaranies. Aseguradora del Este and Familiar also ranked among the top five in final results, underscoring their financial stability and operational efficiency.
In terms of growth in final results, Itaú Seguros again led the sector with an increase of 7.9 billion Guaranies, followed by Patria at 6.5 billion Guaranies. Regional, Aseguradora Yacyreta, and Sancor also posted strong gains in final results, reflecting solid performance and growth strategies in their operations.
Overall, the Paraguayan insurance market is experiencing a period of robust growth and profitability. The sector’s resilience is highlighted by solid premium growth, disciplined claims management, and significant investment gains, positioning Paraguayan insurers favorably in the current economic landscape.
