The Venezuelan insurance market closed September 2025 showing a complex combination of nominal expansion in local currency terms and a significant contraction when measured in U.S. dollars. This duality reflects the structural macroeconomic conditions of the country, where inflation, exchange-rate dynamics, and regulatory constraints continue to shape the behavior of premiums, claims, and overall industry performance.
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Net written premiums reached USD 461 million as of September 2025, compared with USD 714 million in September 2024. This represents a sharp year-on-year contraction of 35.4 percent in nominal dollar terms and highlights the impact of currency depreciation on the industry’s capacity when expressed in hard currency. In contrast, premiums expressed in bolívares surged from 26,329 million to 81,528 million over the same period, equivalent to 209.7 percent nominal growth. This divergence positions the Venezuelan market as one of the most distorted in the region, where real activity tends to be obscured by exchange-rate volatility.
A total of 46 insurance companies operate in the Venezuelan market, equivalent to 5 percent of all insurers in Latin America. Despite this relatively high number of participants, competition is heavily concentrated among a small group of leading companies. The top ten insurers account for 78.9 percent of net premiums, consolidating the sector into a narrow leadership structure.
Mercantil C.A., Seguros stands firmly as the market leader with a 25.4 percent share, followed by Caracas C.A., Seguros with 20.6 percent. Internacional S.A. de Seguros holds 5.9 percent, while MAPFRE La Seguridad, C.A. de Seguros and Oceánica de Seguros, C.A. follow closely with 4.9 percent and 4.8 percent respectively. Constitución C.A., Seguros reaches 4.2 percent, Pirámide C.A., Seguros maintains 3.8 percent, and Hispana de Seguros, S.A. holds 3.4 percent. Estar Seguros, S.A. and Venezuela C.A., Seguros complete the top ten with 3.0 percent and 2.9 percent respectively. This distribution demonstrates that only two insurers control nearly half of the entire sector, while most other players remain significantly smaller in scale.
Technical indicators reveal additional insights into the sector’s operational dynamics. Net written premiums totaled 81,528 million bolívares, forming the basis for the industry’s cost and claims structure. Net claims paid amounted to 31,759 million bolívares, equivalent to 39 percent of premiums, while total claims—considering both paid claims and reserve variations—reached 46,540 million bolívares, representing 57 percent. Gross reserves for pending claims and benefits stood at 14,781 million bolívares, while net reserves after reinsurance reached 4,360 million, equivalent to 18 percent and 5 percent of premiums respectively. These ratios signal an industry maintaining relatively controlled loss levels despite volatility, with reinsurance playing a significant role in mitigating net exposure.
Acquisition and management costs also shape the sector’s profitability structure. Commissions reached 7,166 million bolívares, representing 9 percent of premiums. Acquisition expenses totaled 4,055 million bolívares, equivalent to 5 percent, and administrative expenses rose to 18,226 million bolívares, accounting for 22 percent of premiums. This cost configuration indicates a high administrative burden typical of inflationary environments where operational expenses escalate rapidly.
Overall, the insurance market in Venezuela continues to operate under extraordinary macroeconomic pressure, reflected in the stark contrast between dollar-denominated and local-currency results. Nevertheless, the industry preserves an active competitive environment, strong concentration among leading groups, and sustained demand across life, non-life, health, and accident lines. Performance indicators suggest that insurers remain capable of navigating volatility through cost discipline, reinsurance strategies, and selective underwriting, although dollar-denominated capacity continues to diminish. The remainder of 2025 will depend heavily on exchange-rate dynamics and inflation trends, which will ultimately define the real evolution of premiums and claims in the sector.