Fitch Colombia Insurance Report - 2019-11-12

Q1 2020
www.fitchsolutions.com
Colombia
Insur
Insuranc
anceeR
Report
eport
Includes 5-year forecasts to 2023
Colombia Insurance Report | Q1 2020
Contents
Key View............................................................................................................................................................................................ 4
SWOT .................................................................................................................................................................................................. 5
Insurance SWOT............................................................................................................................................................................................................................ 5
Industry Forecast........................................................................................................................................................................... 6
Life Premiums Forecast ............................................................................................................................................................................................................. 6
Non-Life Premiums Forecast................................................................................................................................................................................................... 9
Non-Life Sub-Sector Forecast ...............................................................................................................................................................................................12
Industry Risk/Reward Index ....................................................................................................................................................18

Latin America & The Caribbean Insurance Risk/Reward Index................................................................................................................................18
Market Overview..........................................................................................................................................................................20
Life Market Overview.................................................................................................................................................................................................................20
Non-Life Market Overview ......................................................................................................................................................................................................22
Company Profile...........................................................................................................................................................................25
AXA Colpatria................................................................................................................................................................................................................................25
Liberty .............................................................................................................................................................................................................................................27
MAPFRE ..........................................................................................................................................................................................................................................29
Seguros Bolívar............................................................................................................................................................................................................................31
Suramericana...............................................................................................................................................................................................................................33
Insurance Methodology.............................................................................................................................................................36
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Key View
Key View: The outlook for Colombia's insurance sector is positive, despite a contraction in premium growth over 2019 in the wake
of continued political unrest and economic uncertainty, and we believe growth will resume in 2020 as the economy stabilises and
various improvements to the business, regulatory and consumer environments support a 12.7% growth in premium sales year-on-
year.
HEADLINE INSURANCE FORECASTS (COLOMBIA 2016-2023)

Indicator 2016 2017 2018e 2019f 2020f 2021f 2022f 2023f
Gross life premiums written, COPbn 12,010.51 13,260.34 14,400.73 13,369.63 15,066.61 17,425.38 20,334.94 23,764.48
Gross life premiums written, COP, % y-o-y 16.3 10.4 8.6 -7.2 12.7 15.7 16.7 16.9
Gross life premiums written, USDbn 3.93 4.49 4.87 4.20 4.68 5.33 6.15 7.11
Gross life premiums written, USD, % y-o-y 4.5 14.2 8.4 -13.7 11.4 14.0 15.4 15.6
Gross non-life premiums written, COPbn 14,796.30 15,525.11 16,816.34 17,952.38 19,196.91 20,491.94 21,829.34 23,248.46
Gross non-life premiums written, COP, %

9.9 4.9 8.3 6.8 6.9 6.7 6.5 6.5
y-o-y
Gross non-life premiums written, USDbn 4.85 5.26 5.69 5.64 5.96 6.27 6.61 6.96
Gross non-life premiums written, USD, %

-1.2 8.5 8.1 -0.8 5.7 5.2 5.3 5.3
y-o-y
e/f = Fitch Solutions estimate/forecast. Source: Superintendencia Financiera, Fitch Solutions
Key Updates And Forecasts
• In September it was announced that by the end of November 2019, the Colombian government would create a new holding
company for 19 complete or partially state-owned companies, including USD1,1bn worth of stakes in insurance companies. The
move is designed to improve efficiency and enhance portfolio management in accordance with OECD advice.
• American Agricultural Insurance Company has received approval to issue reinsurance in Colombia and Argentina.
• Seguros Bolivar has completed its acquisition of Liberty Life Insurance Colombia (Liberty de Seguros Vida).
• According to recent regulator reports, Suramericana and Seguros de Vida Alfa issue 53% of the life policies of the local
market, and the life market as a whole saw solid growth over H1 2019, up 7% y-o-y to USD7.3bn.
• Real GDP growth in Colombia will pick up in the coming quarters as low borrowing costs support private consumption and
business investment. However, we note that economic uncertainty, driven by weak crude oil prices and mounting global
headwinds, may hamper foreign investment or undermine Colombian exports. 2020 real GDP growth forecast is 3.3%.
• On October 16, Colombia’s Constitutional Court (TC) struck down a fiscal reform bill passed in December 2018, citing procedural
errors made in Congress during its passage. The fiscal reform, which went into effect in January 2019, enacted a multi-year
reduction in the corporate tax rate, from 33.0% previously to 30.0% by 2022, lowered the withholding tax rate for foreigners
holding Colombian debt from 14.0% to 5.0% and increased income taxes on high-earning Colombians. Although a positive
development in the long run and the likelihood to enhance the country’s appeal for foreign investors and multinational
insurance companies, uncertainty over the multi-year implementation of corporate tax cuts will likely hamper short-term
business confidence and investment in Colombia.
SWOT
Insurance SWOT
SWOT Analysis
Strengths • By most measures, Colombia is a growing market with an expanding and increasingly affluent population
providing scope for further penetration.
• The regulatory environment for insurers is well developed by emerging market standards.
• Demand for general liability insurance is especially high compared with other markets in Latin America.
• High levels of economic growth have provided a steady platform for premiums growth in recent years (and
will continue to do so).
Weaknesses • Colombia remains a low-income country, with high poverty rates undermining widespread uptake of
insurance coverage.
• There is intense competition within some core non-life lines, including voluntary motor vehicle insurance.
• The retirement-age population is small, limiting demand for life and health insurance policies.
• The presence of large providers, many tied to multinational insurance groups, is a barrier for new entrants.
Opportunities • Demand for private pension provision is growing, creating interest in life insurance as a savings and
investment product.
• Bancassurance and cross-selling practices should help increase distribution across the population.
• High levels of foreign direct investment in the real estate market should support further demand for
property insurance.
• A fast-growing driving-age population will support demand for passenger car insurance.
Threats • Falling oil and coal revenues could affect freight transport volumes and hence demand for transport
insurance.
• Volatility in financial markets may undermine growth in corporate insurance lines, including general liability.
• Political risk remains an ongoing concern for international investors and may affect growth in property and
other insurance lines.
• A sluggish economy is likely to impact household spending and therefore demand for health and other
personal insurance lines.
Industry Forecast
Life Premiums Forecast
Key View: Life insurance has historically struggled with the effects of low household incomes and a limited awareness of the
advantages of the products. This has been exacerbated in 2019 by political and economic uncertainty, however, we take a more
sanguine outlook for 2020 and the remainder of our forecast period, and project steady double-digit growth through to 2023.
Latest Updates
• Real GDP growth is forecast to recover in 2020, and reach 3.3% as rising real wages support private consumption and improving
business confidence drives investment. Therefore, we expect to see growth in life insurance premiums as more Colombians
direct disposable income to long-term savings.
• According to recent regulator reports, Suramericana and Seguros de Vida Alfa issue 53% of the life policies of the local market,
and the life market as a whole saw solid growth over H1 2019, up 7% y-o-y to USD7.3bn.
Structural Trends
Colombia's life insurance market is in the earlier stages of development and will account for around 44% of premiums written in the
market in 2020. The life insurance market will continue to develop in relative terms, accounting for almost 50% of total underwriting
activity by the end of the current forecast period in 2023. Life insurance penetration will remain low as a percentage of overall GDP,
with premiums measured at 1.4% of total economic output in 2020 rising to 1.8% by the end of 2023.
Strong Recovery Projected For 2020

Colombia - Gross Life Insurance Premiums (2016-2023)
Life Insurance Premiums: Substantial Growth Potential
Both demand factors (eg, growing household incomes and increasing demand by companies for group products) and supply
factors (eg, new capital, the commitment by many leading multinational companies to the market and innovation) should enable
life premiums to realise healthy growth throughout the forecast period. Taking a medium-term view, we note that all the leading
players are either subsidiaries of global or regional multinationals who clearly have a commitment to Colombia, or elements of the
major indigenous financial services groups. In short, it is likely that the amount of capital that is available to the segment and the
efforts that are taken to market products will increase.
There are several clear long-term drivers for growth of the life insurance sector in Colombia. These include rising life expectancies
and a rising morbidity among the country's growing retirement-age population. The country's retirement-age population is forecast
to expand steadily over the medium term and the number of residents aged 65 and over is forecast to reach 5.0mn by 2023. This
environment should create further opportunities for life insurers going forward in a country where pension provision is noticeably
limited by international standards. A recent study by Universidad de Rosario estimated that only about 37% of Colombian workers
were putting money aside for their retirement. Growing demand for private pension provision, combined with a general increase in
the popularity of savings and investment products, should result in increased demand for life insurance products, as has already
been seen in recent years. The life sector will also receive a boost from improvements to average household income rates.
Purchasing Power And Demographic Trends

Colombia - Household Income Breakdown (2019-2023)
f = Fitch Solutions forecast. Source: National sources, Fitch Solutions
While the popularity of life insurance products is growing, the expansion of this market will remain constrained by limited uptake
among poorer communities. Given the relatively high disparity between the richer and less wealthy segments of Colombian society,
many providers of life insurance lines continue to concentrate their marketing efforts overwhelmingly on the middle-class
consumer. In contrast to developing states, Colombian life insurers are currently doing relatively little to extend their product
offering beyond this target demographic, through offering micro-insurance products for example. Given that, according to the
World Bank, about 30% of the population of Colombia is living below the poverty line, overall life insurance penetration will remain
limited. There is some upside risk to our forecasts should insurers diversify their product ranges in order to cater to more lower
income households.
LIFE PREMIUMS (COLOMBIA 2016-2023)

Gross life premiums written, COPbn 12,010.51 13,260.34 14,400.73 13,369.63 15,066.61 17,425.38 20,334.94 23,764.48
Gross life premiums written, COP, % y-o-y 16.3 10.4 8.6 -7.2 12.7 15.7 16.7 16.9
Gross life premiums written, USDbn 3.93 4.49 4.87 4.20 4.68 5.33 6.15 7.11
Gross life premiums written, USD, % y-o-y 4.5 14.2 8.4 -13.7 11.4 14.0 15.4 15.6
Gross life premiums written, % of GDP 1.4 1.4 1.4 1.3 1.4 1.5 1.6 1.8
Gross life premiums written, % of gross

44.8 46.1 46.1 42.7 44.0 46.0 48.2 50.5
premiums written
Claims: Capital Inflows To Support Development Of Market
Claims and benefits paid by Colombia's life insurers have been growing very rapidly. However, in per capita terms and relative to the
overall economy, they remain at a low level, at USD2.0bn in 2017. The development of claims and payments in the past reflects the
growing acceptance of life insurance in a country where the wider financial services sector is steadily evolving. Looking ahead, we
expect the Colombian life insurers to become more disciplined in their underwriting methods as they look to curb local currency
denominated claims that have spiked. With faster adoption levels, insurers will be wise to counter double-digit spikes in the claims
ratio.
LIFE INSURANCE CLAIMS (COLOMBIA 2011-2017)

Indicator 2011 2012 2013 2014 2015 2016 2017
Claims life, COPbn 2,867.00 3,402.01 3,824.27 4,233.46 4,671.74 5,207.90 5,808.52
Claims life, COP, % y-o-y 5.8 18.7 12.4 10.7 10.4 11.5 11.5
Life insurance gross loss ratio 46.2 46.2 32.7 44.0 45.2 43.4 43.8
Claims life, USDbn 1.55 1.89 2.05 2.11 1.70 1.71 1.97
Claims life, USD, % y-o-y 8.7 22.0 8.0 3.3 -19.5 0.2 15.4
Source: FASECOLDA, Fitch Solutions
Non-Life Premiums Forecast

Key View: Unlike the life sector, we do not expect to see a contraction in 2019, nor do we project the same strong double-digit
growth rates. Instead, we forecast the more mature non-life sector to see steady annual growth of just over 6% per year throughout
the remainder of our forecast period. There is still significant room for growth, as rates of penetration and density in the non-life
sector are still well below developed market states, and rising disposable income and growing consumer awareness make for an
attractive growth story.
Latest Updates
• We believe that consumer and business confidence will continue to improve in 2020, bringing a return to meaningful growth in
key insurance segments over our five-year forecast period to 2023 and beyond.
• This will feed through into an increased demand for cars, property and imported retail goods, driving up demand for motor,
property and transport insurance in particular.
Structural Trends
The non-life insurance market in Colombia is more developed than the life sector and will account for more than 56% of premiums
written in the country (according to our 2020 forecasts). This share will slip over the forecast period as the life sector records more
rapid growth from a lower base. That said, the non-life market's expansion will continue to outpace that of Colombia's wider
economy in nominal terms. As a result, we forecast penetration of the non-life sector to remain around 1.7% of GDP over the next
five years.
Stable Growth Prospects

Colombia - Gross Non-Life Premiums (2016-2023)
Non-Life Insurance Premiums: Still Offering Substantial Growth Potential
We continue to forecast healthy growth in terms of non-life premiums written in the Colombian market, with underwriting activity
increasing steadily over the course of the forecast period, from 2019 to 2023. This reflects robust growth across the wider
economy and, in particular, expansion of the services sector. An increase in the number of vehicles on Colombia's roads should
boost demand for motor insurance, which is currently the largest of the various non-life segments we monitor and accounts for just
under a third of total premiums. While penetration of non-life insurance remains low relative to other major Latin American states,
we are confident of this rising over the long term. This is partly due to the absolute size and sophistication of Colombia's corporate
sector and the potential for local companies to cover large-scale risks with Colombian insurers, rather than in the global market. It is
also due to the near certain (and dramatic) increase in the numbers of households that can afford more than just basic property and
motor covers. Overall, we expect non-life premiums to reach COP23,248.5bn (USD7.0bn) in 2023.
There are some potential risks to our current forecasts for Colombia's non-life sector. Inflation is rising, which could distort growth
rates, while a failure to continue improving its business environment could prolong Colombia's growth slowdown as investors look
to more favourable destinations for investment in light of the country's high wage and non-wage costs and insufficient
infrastructure. We believe that this will be a headwind to growth in the medium term, but it could become a more structural, long-
term issue if not addressed in the next few years. Should our current forecasts for healthy GDP growth fail to materialise, we would
look to make a downwards revision to our forecasts for the non-life sector.
NON-LIFE PREMIUMS (COLOMBIA 2016-2023)

Gross non-life premiums written, COPbn 14,796.30 15,525.11 16,816.34 17,952.38 19,196.91 20,491.94 21,829.34 23,248.46
Gross non-life premiums written, COP, %

9.9 4.9 8.3 6.8 6.9 6.7 6.5 6.5
y-o-y
Gross non-life premiums written, USDbn 4.85 5.26 5.69 5.64 5.96 6.27 6.61 6.96
Gross non-life premiums written, USD, %

-1.2 8.5 8.1 -0.8 5.7 5.2 5.3 5.3
y-o-y
Gross non-life premiums written, % of

1.7 1.7 1.6 1.7 1.7 1.7 1.7 1.7
GDP
Gross non-life premiums written, % of

55.2 53.9 53.9 57.3 56.0 54.0 51.8 49.5
gross premiums written
Claims: Maintaining Cost Control
Claims have soared in Colombia's non-life segment over recent years. This is a reflection of the overall growth of the economy,
increased usage of non-life insurance and development of new and innovative products by the insurance companies themselves.
Claims are at low levels relative to premiums and total GDP (and other metrics). We attribute this to good control of costs by the
leading non-life companies.
Motor Leading Claims Costs

Colombia - Non-Life Claims By Type, USDmn (2017)
Source: Superintendencia Financiera, Fitch Solutions
In 2017, motor vehicle claims amounted to about USD1.2bn, or 49.2% of the total, while four other lines each generated claims over
USD100mn. Health insurance accounted for the second highest volume of claims paid in 2017, at USD369.8mn. Property
insurance claims (from both household and industrial covers) have increased from USD201.9mn in 2009 to USD313.9mn in 2017.
Property claims have actually fallen in the recent past, having reached a high of USD420mn in 2011. Credit and financial guarantee
and general liability also saw claims of over USD100mn in 2017, at USD227.3mn and USD113.1mn respectively. Looking ahead, we
anticipate the non-life carriers will tighten their underwriting practices as they look to curb rising costs of insurance. The drop in
claims growth from 2012 onwards suggests that carriers have become aware of the downside risks of loose underwriting methods.
NON-LIFE INSURANCE CLAIMS (COLOMBIA 2009-2017)

Indicator 2009 2010 2011 2012 2013 2014 2015 2016 2017
Claims non-life, COPbn 3,078.48 3,070.97 3,809.73 4,301.38 4,610.76 4,765.64 5,561.26 6,810.03 7,161.19
Claims non-life, COP, % y-o-y 2.8 -0.2 24.1 12.9 7.2 3.4 16.7 22.5 5.2
Non-life insurance gross loss ratio 37.9 37.0 41.8 28.0 33.1 40.3 41.3 46.0 46.1
Source: FASECOLDA, Fitch Solutions
Non-Life Sub-Sector Forecast

Key View: Colombia's non-life insurance market is well developed and most leading providers offer a relatively comprehensive
range of covers across key lines, both mandatory and voluntary. We maintain our favourable outlook for most non-life lines as
multiple macroeconomic drivers, including rising wages and growing disposable income levels, will support purchases of big-ticket
insurable items and increase demand for covers in the health and personal accident segments.
Latest Updates
• Colombia’s recovering macroeconomic conditions, improving employment situation, increased wage growth and higher
household spending power all bode well for non-life insurance premiums growth in 2020 across all sub-sectors.
• We forecast vehicle sales in Colombia to grow by 4.4% in 2020 compared to the LatAm regional average growth of 3.7%, and
continue to average annual growth of 4.3% over the remainder of our 2020-2028 forecast period. This will support steady
growth in demand for motor insurance policies, and we forecast a 7.2% increase y-o-y in 2020.
Structural Trends
Similar to many developing markets, Colombia's non-life sector is dominated by basic lines, with motor forecast to account for
40.7% of premiums in 2019, followed by property insurance on 19.8%. The market has, however, evolved beyond basic lines and
also writes a sizeable volume of premiums in traditionally smaller segments, such as the credit and financial guarantee insurance
line, which will account for 7.6% of Colombian non-life premiums in 2019.
Motor Leading The Market

Colombia - Non-Life Premiums By Type, USDmn (2019f)
f = Fitch Solutions forecast. Source: Superintendencia Financiera, Fitch Solutions
Motor Insurance: Mature Line Still Offering Growth Potential
Colombia’s automotive market will outperform its regional peers in 2020 as the country’s rebounding economy drives up the
demand for new vehicles. Increased investment inflows into Colombia will see the demand for vehicles, especially commercial
vehicles, receive a further boost. Furthermore, we highlight the continued improvements in the country’s labour market coupled
with the low cost of borrowing will further boost consumers’ willingness and ability to purchase passenger vehicles. Lastly, we
believe that Cambodia's commercial vehicle segment will see robust demand stemming from increased investment inflows. This will
support steady growth in demand for motor insurance policies, and we forecast a 7.2% increase y-o-y in 2020, to reach
COP7,836,952mn.
Sturdy Growth Outlook Ahead

Colombia - Motor Premiums (2016-2023)
e/f = Fitch Solutions estimate/forecast. Source: FASECOLDA, Fitch Solutions
Automakers are readying to capitalise on the expected bounce back of the Colombian consumers by introducing new models into
the market for 2019. Our autos team has highlighted the particular targeting of the upper-income consumer base with new SUVs
and luxury sedans, a demographic likely to get more expensive motor insurance. Against this backdrop, we expect motor insurance
premiums will account for 41.6% of the non-life market in 2023.
Vehicle Fleet Size

Colombia (2016-2023)
e/f = Fitch Solutions estimate/forecast. Source: Ministerio de Transporte, Fitch Solutions
Transport Insurance: Recovering From Short-Term Dip
Transport insurance is a minor line in the Colombian non-life market, where the sector will for 3.9% of total premiums written in
2020. Growth in the transport insurance sector has been weaker and more inconsistent than the growth enjoyed by motor vehicle
insurers in recent years. Lower export revenues due to falling prices for both oil and coal dampened demand in 2017, when
premiums written in the transport sector declined by almost 3% in USD terms.
We have become more downbeat in our medium- and long-term outlook for crude oil prices, which will limit Colombian export
growth and, in turn, weigh on growth prospects for transport insurance, as will uneven Colombian industrial production will limit
manufacturing exports. In H119, monthly industrial activity increased by an average of 1.5% and contracted in April and June as
business confidence has been volatile in recent months, holding back manufacturing growth. However, Import growth will outpace
exports as private consumption and investment underpin Colombian economic activity growth. With improving economic activity
growth in Colombia, we expect demand for imports will remain robust as Colombian households increase spending. This will
contribute to a growth rate of 4.9% in 2020 transport premiums, reaching COP746,777mn.
Stable Demand Set to Continue

Colombia - Transport Premiums (2016-2023)
Property Insurance: Second Most Important Line
Property insurance is the second largest line in the Colombian non-life sector, and will account for 19.3% of total non-life premiums
written in 2020. The outlook for this line is mixed. While growth in fixed capital investment is expected to boost demand, competitive
pressures (and perhaps government regulations) will act as a restraint on premium growth. As a result, this sector is expected to see
slower growth than the other non-life lines. We forecast growth of 4.2% in 2020, and this will taper off to 2.4% annual growth by
2023.
Growth Rates Falling

Colombia - Property Premiums (2016-2023)
Health Insurance: Significant Opportunities Available
The state of Colombia's public healthcare system remains volatile and many news sources in the country have begun highlighting
the system as being in a state of crisis. The government has negated these accusations, but controversy continues to shroud the
Nueva Entidades Promotoras de Salud's efficiency. Compounded by financial instability in the sector, Colombia's health system will
remain disadvantaged in coming years and limit the country's appeal for foreign investment. Despite these risks, Colombia's health
market remains on the rise as medical demand continues to grow, while the country's epidemiological burden transitions from
infectious disease to chronic conditions.
We expect Colombia's total healthcare expenditure to grow relatively strongly as the cost of healthcare provision escalates and an
increasing number of drugs are demanded under the Plan Obligatorio de Salud. This will encourage more Colombians to see the
value in health insurance, driving up policy purchases over the medium term, from COP2,293,003.9mn in 2020 (up 12% on 2019),
to COP3,170,904mn in 2023. Our forecasts also take into account the government's efforts to contain costs and the possible
implementation of further schemes to increase out-of-pocket payments.
Our positive outlook for health insurance is underpinned by various contributing factors which will boost consumer awareness of
the value of health insurance. One item is the Superintendencia de Industria y Comercio de Colombia (Colombia’s Superintendence
of Industry and Commerce) introduction of price caps for medicines. Meanwhile, the Bogota municipal government announced
that it will launch the tender for seven hospital projects as public-private partnerships in August 2018, the first such use of the PPP
model for healthcare infrastructure in the country. The projects, for which the municipal government will contribute COP1.5trn
(USD525mn), include the construction of seven new hospitals in the city with a combined floor area of 200,000sq m. Measures
such as these not only improve healthcare but also contribute to growing awareness of the value and importance of good
healthcare and thus health insurance, driving up premiums.
NON-LIFE INSURANCE PREMIUMS BY PRODUCT LINE (COLOMBIA 2016-2023)

Motor vehicle insurance,

5,800,678.0 6,444,501.2 6,914,949.7 7,308,388.8 7,836,952.2 8,409,913.4 9,018,755.7 9,679,535.3
COPmn

10.6 11.1 7.3 5.7 7.2 7.3 7.2 7.3
COP, % y-o-y

39.2 41.5 41.1 40.7 40.8 41.0 41.3 41.6
% of non-life insurance
Property insurance,
3,001,041.8 3,049,462.9 3,387,953.3 3,555,735.6 3,705,339.0 3,832,295.3 3,939,894.9 4,035,489.7
COPmn
Property insurance, COP,

10.6 1.6 11.1 5.0 4.2 3.4 2.8 2.4
% y-o-y
Property insurance, % of
20.3 19.6 20.1 19.8 19.3 18.7 18.0 17.4
non-life insurance
Transport insurance,
679,810.9 638,424.3 672,260.8 711,765.3 746,777.7 776,802.1 800,438.6 818,000.6
COPmn
Transport insurance, COP,

44.3 -6.1 5.3 5.9 4.9 4.0 3.0 2.2
% y-o-y
Transport insurance, % of
4.6 4.1 4.0 4.0 3.9 3.8 3.7 3.5
non-life insurance
Personal accident
1,281,625.1 1,326,798.8 1,719,531.2 1,746,848.9 1,870,428.1 2,004,387.6 2,146,736.1 2,301,227.8
insurance, COPmn
Personal accident 16.7 3.5 29.6 1.6 7.1 7.2 7.1 7.2
insurance, COP, % y-o-y
Personal accident
insurance, % of non-life 8.7 8.5 10.2 9.7 9.7 9.8 9.8 9.9
insurance
Health insurance, COPmn 1,727,209.8 1,889,430.7 1,910,214.5 2,045,556.4 2,293,003.9 2,561,029.0 2,852,951.2 3,170,904.9
Health insurance, COP, %

17.6 9.4 1.1 7.1 12.1 11.7 11.4 11.1
y-o-y
Health insurance, % of
11.7 12.2 11.4 11.4 11.9 12.5 13.1 13.6
non-life insurance
General liability insurance,

964,180.9 1,027,391.8 1,110,610.6 1,124,640.9 1,188,110.7 1,256,911.9 1,330,021.6 1,409,368.0
COPmn

1.0 6.6 8.1 1.3 5.6 5.8 5.8 6.0
COP, % y-o-y

6.5 6.6 6.6 6.3 6.2 6.1 6.1 6.1
% of non-life insurance
Credit/financial guarantee
1,249,350.5 1,060,854.6 1,223,165.3 1,365,325.3 1,457,694.0 1,548,199.1 1,632,467.4 1,720,493.2
insurance, COPmn
-2.0 -15.1 15.3 11.6 6.8 6.2 5.4 5.4
insurance, COP, % y-o-y
insurance, % of non-life 8.4 6.8 7.3 7.6 7.6 7.6 7.5 7.4
insurance
Other insurance, COPmn 92,403.6 88,242.1 91,568.9 94,118.4 98,608.3 102,400.1 108,072.1 113,444.7
Other insurance, COP, % y-

-60.8 -4.5 3.8 2.8 4.8 3.8 5.5 5.0
o-y
Other insurance, % of non-

0.6 0.6 0.5 0.5 0.5 0.5 0.5 0.5
life insurance
Industry Risk/Reward Index

Latin America & The Caribbean Insurance Risk/Reward Index
Bermuda reigns supreme in our Latin America and Caribbean Risk/Reward Index (RRI), retaining its score of 79.10, out of a possible
100, for a third consecutive quarter. The offshore insurance hub has a well-balanced portfolio, in which it leads every component
bar Country Rewards and Country Risks. The competition between the Cayman Islands and Brazil remains extremely close, with
0.04 marking the difference between second and third place. Brazil’s RRI score of 63.35 also cemented its status as the best-
performing large market, owing to its well-developed industry and its potential for growth. Barbados stays in the top five with Chile,
despite its score falling by 0.45.
The majority of the countries in our RRI maintained their positions, including the 10 leading markets. Peru and Uruguay, however,
switched places this quarter. Guatemala also entered the bottom five, while Paraguay climbed one rank on the back of increased
Risks scores.
The worst-performing markets are typically small Central American and smaller South American countries lacking stability and
openness. Brazil, Colombia, Argentina and Chile are exceptions for the latter, with each country placing in the top 10. Venezuela’s
RRI score increased by 3.09, but this was not enough to prevent the market from having the weakest score for South America and
the index as a whole. Hyperinflation, a weak currency, poor consumer outlook and political unrest are some of the reasons why our
outlook for Venezuela is negative – and may continue to be for some time.
Small-scale industries, like those in Bolivia and Nicaragua, mean that these countries are also among our least promising Latin
American insurance markets. When compared with our other indices – particularly the Developed States – Latin America and the
Caribbean trail behind in Rewards with an underwhelming average of 39.35. Top performers Bermuda and Brazil buck this trend,
scoring 77.85 and 61.67 respectively. In addition, the latter has a comfortable 4.69 lead against Mexico, which sits in third place for
Rewards.
What the region lacks in Rewards, it makes up for in Risks, garnering an average of 59.85. The five leading countries for this
component – Bermuda, Bahamas, Cayman Islands, Barbados and Chile – score well above their peers, as 8.01 separates Chile in fifth
position from Brazil in sixth place.
The Insurance RRI considers the current state and long-term potential of the non-life and the life segments. It also assesses how
open each segment is to new entrants and economic conditions. Collectively, these measures enable an objective review of the
limits to potential returns across all countries – and over a period of time. The score also focuses on the risks to the realisation of
returns, which is based on our proprietary Country Risk Index. It also embodies a subjective assessment of the impact of the
regulatory regime on the development and competitive landscape of the insurance sector.
LATIN AMERICA AND THE CARIBBEAN INSURANCE RISK/REWARD INDEX

Industry Industry Industry Country Rewards Industry Country Risks Insurance Rank
Rewards Rewards Rewards Rewards Risk Risks Risk/
Non-Life Life Reward
Score
Bermuda 93.75 100.00 87.50 54.00 77.85 95.00 73.33 82.00 79.10 1
Cayman 57.50 82.50 32.50 54.00 56.10 90.00 74.00 80.40 63.39 2
Islands
Brazil 73.75 82.50 65.00 43.54 61.67 70.00 65.45 67.27 63.35 3
Barbados 46.25 50.00 42.50 66.34 54.29 95.00 66.67 78.00 61.40 4
Chile 50.00 55.00 45.00 58.81 53.52 70.00 78.80 75.28 60.05 5
Bahamas 47.50 50.00 45.00 54.74 50.40 95.00 71.01 80.61 59.46 6
Mexico 63.75 65.00 62.50 46.83 56.98 75.00 54.00 62.40 58.61 7
Colombia 50.00 55.00 45.00 46.51 48.61 70.00 53.92 60.35 52.13 8
Argentina 48.75 60.00 37.50 40.90 45.61 70.00 55.25 61.15 50.27 9
Trinidad & 26.25 25.00 27.50 60.74 40.05 65.00 67.81 66.69 48.04 10
Tobago
Peru 33.75 37.50 30.00 48.12 39.50 65.00 59.01 61.40 46.07 11
Uruguay 30.00 35.00 25.00 42.51 35.00 55.00 74.99 66.99 44.60 12
Panama 28.75 40.00 17.50 41.64 33.91 65.00 56.01 59.61 41.62 13
Ecuador 38.75 47.50 30.00 34.64 37.11 70.00 37.27 50.36 41.08 14
Costa Rica 16.25 27.50 5.00 47.88 28.90 70.00 63.50 66.10 40.06 15
Jamaica 21.25 20.00 22.50 35.65 27.01 70.00 51.93 59.16 36.65 16
Dominican 13.75 22.50 5.00 39.12 23.90 75.00 56.10 63.66 35.83 17
Republic
El Salvador 23.75 27.50 20.00 40.74 30.55 45.00 46.97 46.18 35.24 18
Paraguay 20.00 25.00 15.00 40.83 28.33 55.00 48.85 51.31 35.22 19
Guatemala 22.50 30.00 15.00 36.80 28.22 55.00 48.25 50.95 35.04 20
Honduras 17.50 17.50 17.50 35.33 24.63 50.00 38.51 43.10 30.17 21
Bolivia 16.25 17.50 15.00 30.46 21.93 40.00 39.00 39.40 27.17 22
Nicaragua 13.75 17.50 10.00 31.83 20.98 35.00 32.90 33.74 24.81 23
Venezuela 15.00 30.00 0.00 25.76 19.30 45.00 20.53 30.32 22.61 24
Note: Scores out of 100, with 100 the best. Source: Fitch Solutions
Market Overview
Life Market Overview
At almost 3% of GDP, Colombia’s insurance sector is more developed than many of its regional peers, though still smaller than more
developed nations. This means there is substantial room for growth, especially in the underdeveloped life sector. The life insurers are
fairly profitable with good capital reserves, and there remains a sizeable capacity for expansion and mergers. Colombia remains
particularly attractive to international groups. With a large number of major players in the market, such as Allianz, Metlife, Liberty,
and AXA inter alia.
Product Offering
Until now, opportunities for innovation and product development in Colombia's life insurance sector have been restricted to an
extent by the under-development of the country's pensions system, as well as restrictions surrounding the marketing and
distribution of certain products. Fortunately, the government has been working with Colombia's insurance association, Federación
de Aseguradores Colombianos (Fasecolda) to provide a more favourable operating environment for companies.
Steps are being taken to formalise the market for pensions and retirement income products. The pensions system in Colombia is
underdeveloped compared with those of many other Latin American countries. Two-thirds of Colombians work in the informal
sector, meaning that only 10% of workers have access to pensions when they retire. In Chile, the equivalent figure is 80%.
Fasecolda and the government are considering ways of extending coverage of the AFP private pension plans, which could present
significant opportunities for the life insurers.
Competitive Landscape
Colombia's life insurance market is relatively fragmented, comprising a number of established indigenous life providers and
multinational firms, many of which have enjoyed rapid growth in their operations over the past few years. However, on an
international scale, most companies remain quite small in scale. Only five companies reported underwriting activity of more than
USD300mn in 2018, with these firms possessing a combined market share of about 72.6%. These include (in order of market share)
Vidalfa, Suramericana Vida, , Bolivar Vida, Seguros De Riesgos and Positiva. The landscape can be best described as fluid,
reflecting the fact that the life segment has been expanding rapidly from a relatively low level of development. None of the
companies mentioned has achieved a crushingly dominant position, while the position of market leader has changed several times
over the past few years. Below the major players, the market is even more fragmented, with 13 companies each holding market
shares of 0.1-4.8%.
In September it was announced that by the end of November 2019, the Colombian government would create a new holding
company for 19 complete or partially state-owned companies, including USD1,1bn worth of stakes in insurance companies. The
move is designed to improve efficiency and enhance portfolio management in accordance with OECD advice.
Suramericana Vida lost its top spot in 2018 to Vidalfa. Suramericana is the life brand of leading insurance composite GRUPOSURA,
which also includes local banking group Grupo Bancolombia. The company reported USD1.2bn in written premiums in 2017,
allowing it a market share of about 24.3%.
Bolívar Vida is the third largest Colombian-owned firm. The company is an element of the composite insurance group that is a part
of the Sociedades. Multinational groups are steadily growing their presence in Colombia's life insurance market. Many of the largest
overseas providers have grown organically. These include Mapfre Vida and BBVA Seguros Vida, subsidiaries of Spanish groups
with an established footprint in the Latin American financial services sector.
Positiva Vida, the fifth largest carrier, is a specialist provider of life insurance, pensions and related products. The company was set up
in 2008 as a successor to La Previsora, on the instructions of the government and is still under the control of Colombia's finance
ministry. The company has seen its presence remain stable over the past few years, and its market share has grown from about
6.3% in 2009 to 7.0% by 2017. The company also owns the Administradora de Riesgos Laborales (ARL) brand, which provides
personal accident covers for both employers and workers.
COLOMBIA - LIFE INSURANCE MARKET SHARES, USDMN (2013-2018)

Vidalfa 1,569.3 938.7 817.8 1,059.3 1,180.2 1,247.1
Suramericana Vida 1,204.7 1,291.2 1,030.8 1,037.9 1,198.9 986.1
Bolivar Vida 398.0 399.1 335.5 345.9 465.6 519.7
Seguros De Riesgos Profesionales Suramericana 351.9 390.4 313.6 321.8 398.0 463.7
Positiva 1,089.2 364.6 287.1 288.5 345.8 362.7
Allianz 567.5 275.9 191.4 242.5 236.6 277.6
AXA Colpatria 234.9 256.5 203.0 186.8 233.6 258.4
Riesgos Profesionales Colmena 197.4 212.4 170.6 166.6 198.3 216.9
MAPFRE Colombia Vida 609.4 455.7 165.8 114.5 132.0 136.5
Metlife Colombia 82.1 88.5 77.4 85.2 97.3 107.8
La Equidad Vida 86.8 101.2 91.3 90.3 88.8 100.5
Global Seguros De Vida 79.7 82.5 87.7 71.7 61.6 91.8
BBVA Vida 115.3 120.5 101.6 84.4 94.1 90.5
Liberty Vida 104.3 98.6 72.4 65.7 69.0 61.1
Vida Estado 41.1 43.2 34.4 33.0 43.1 47.1
Pan American Life 8.4 8.9 9.8 20.6 36.1 41.5
Old Mutual 68.7 66.3 38.9 32.7 31.2 24.4
Aurora Vida 5.7 6.8 4.6 3.0 2.3 1.8
Generali 29.6 30.2 23.6 21.8 27.8 0.0
Source: National sources, Fitch Solutions
Other foreign groups have entered the market by way of mergers and acquisitions. These include Germany's Allianz (following its
purchase of Colseguros) and France-based AXA (following the completion of its purchase of a 51% stake in Seguros Colpatria).
Allianz in particular looks set to bolster its Colombian operations and to increase its share of the market from about 4.8% at present.
Other notable foreign-owned providers include the Colombian life insurance operations of US insurer Metlife, Switzerland-
based ACE and Cardif, a subsidiary of French banking group BNP Paribas. Liberty Life Insurance Colombia (Liberty de Seguros
Vida) was purchased by Seguros Bolivar on October 17 2019, along with the occupational risk insurance arm. However, Liberty will
continue to operate its general insurance arm (Liberty Seguros Generales) in Colombia. At present, these firms comprise a relatively
small part of the Colombian life market, Liberty being the largest underwriter of those mentioned with a market share of about
1.5%; however, we expect the presence of these, and other multinational groups, to continue to increase over the next few years, as
rising income levels and the recent regulatory changes described above increase the size and accessibility of the target market.
Non-Life Market Overview

The non life sector continues to benefit from the improving economic outlook, together with a larger middle class and higher
disposable income levels. This has seen non-life premiums rise across the board and is attracting a number of new players, both
regional and international – attracted by the comparatively limited penetration in comparison to developed markets coupled with
improving consumer awareness of the value of non-life insurance products. Foreign players are typically focused on smaller product
lines and specific segments, rather than trying to compete with the established domestic players across the whole field.
Product Offering
The product offering of Colombian non-life insurers is relatively well developed by Latin American standards, with the larger
indigenous firms, including Suramericana, able to leverage their wider financial services operation through bancassurance and
other tie-ins. Insurance companies are also becoming more innovative in the ways in which they interact with clients. An example of
the relatively broad product range of Colombian insurers is the presence of Seguros Falabella, the dedicated pet insurance brand
of Liberty Seguros.
Companies are reportedly exploring ways to use technological advancements to develop the way they market to motor vehicle
insurance customers. Currently most motor covers are priced according to the model and age of vehicles customers drive, however,
local media reports suggest that companies are investing in technology that will allow motor insurers to offer personalised covers
with costs more closely tailored to the profile of driver, including their profession and risk profile. Multinational groups, including
AXA Colpatria, are reportedly spearheading the move, which may be a response to stagnation in motor vehicle premiums over the
past few years.
Various regulatory and legislative changes have been predicted likely to lead to higher, non-life premiums over the coming years.
The government is looking to introduce compulsory insurance for home builders, for example, which should allow insurers to take
advantage of projected strong long-term demand for housing and commercial property. In September 2014, the national mining
agency also announced new rules that require that performance bonds be purchased for each stage of the exploration and
construction of mining projects.
Competitive Landscape
The competitive landscape of Colombia's non-life market is again quite fluid, with many of the leading companies enjoying
spectacular growth in gross premiums written over the last few years. In September it was announced that by the end of November
2019, the Colombian government would create a new holding company for 19 complete or partially state-owned companies,
including USD1,1bn worth of stakes in insurance companies. The move is designed to improve efficiency and enhance portfolio
management in accordance with OECD advice.
The largest player, by quite a margin, is the non-life business of Suramericana, the insurance arm of Grupo Suramericana de
Inversiones (GRUPOSURA). Suramericana's premiums in 2017 amounted to USD858.3mn, representing a market share of about
17.8%. There are a number of companies vying for the positions that follow, with seven providers each holding a market share of
between 5% and 10%. Of the numerous smaller players, the larger groups include Seguros del Estado, Seguros
Previsora, Seguros Bolívar and Seguros Mundial. A number of the smaller players are focusing on corporate clients or other
niches.
As in the life market, multinational groups present a formidable source of competition to indigenous non-life providers. Following its
purchase of Colseguros in 1999, Germany's Allianz has been steadily growing its operations in Colombia's non-life sector and the
company reported USD370mn in non-life underwriting activity in 2017, giving it a market share of about 7.7%. (Allianz changed the
name of its Colombian brand from Colseguros to Allianz in 2010).
A Fragmented Landscape
Colombia - Top 10 Non-Life Insurance Market Shares, USDmn (2017)
Source: National sources, Fitch Solutions
Other significant foreign providers include US-based Liberty and Spain's MAPFRE. The companies had a market share of about
5.5% and 6.2% respectively in 2017. France's AXA is also expanding its presence in the market following its purchase of a 51% stake
in Seguros Colpatria in 2013. The company has since rebranded as AXA Colpatria and, according to local media reports, is
reportedly looking to expand its infrastructure and construction underwriting businesses. AXA wrote non-life premiums of
USD296.4mn in 2017, giving it a share of 6.2%.
COLOMBIA - NON-LIFE INSURANCE MARKET SHARES, USDMN (2010-2017)

2010 2011 2012 2013 2014 2015 2016 2017
Suramericana 692.3 747.2 866.2 904.8 894.3 744.2 777.9 858.3
Estado 251.4 307.7 370.1 417.9 434.3 411.6 367.3 417.5
Allianz 433.1 412.1 3,297.2 2,007.3 515.8 394.2 335.2 370.0
Previsora 384.6 420.9 340.7 315.1 319.3 289.9 356.8 308.5
Chubb 63.1 87.6 102.2 90.9 103.3 82.2 246.5 307.4
MAPFRE 214.5 271.7 300.3 306.9 292.2 288.9 304.9 300.2
AXA Colpatria 326.4 434.4 565.4 529.6 527.7 308.7 303.1 296.4
Liberty 376.9 400.9 405.1 393.3 378.4 303.2 300.3 265.2
Bolivar 200.8 230.4 263.7 277.8 256.2 241.2 245.8 254.1
Mundial 88.0 98.1 116.4 133.4 159.8 160.1 163.7 212.1
Solidaria 148.2 158.3 195.5 202.4 246.9 171.8 163.0 209.0
Equidad 46.7 51.4 57.0 60.1 87.3 111.9 150.8 196.6
Cardif Colombia 22.3 73.6 101.3 147.2 167.5 198.1 214.8 190.2
QBE 244.0 246.4 267.8 244.5 229.5 153.0 137.8 149.9
SBS SEGUROS COLOMBIA S.A na na na na na na 0.0 120.3
Alfa 15.7 29.6 63.0 70.9 88.2 92.9 99.8 96.1
Generali Colombia 68.8 81.3 119.3 105.7 96.0 68.5 58.8 75.5
Confianza 70.7 81.1 86.1 90.5 83.1 64.9 51.0 57.3
BBVA Seguros 29.6 34.3 40.7 41.9 47.6 42.7 43.2 48.5
Zurich Colombia na na na na na 0.0 3.9 20.0
na = not available. Source: National sources, Fitch Solutions
Since 2003, the government has organised public sector health insurance through a simplified structure operated by seven state-
owned, largely autonomous healthcare providers, known as State Social Enterprises (ESEs). These had varying degrees of success
and additional reforms were required, although some 14% of the Colombian population remains uninsured.
ISS health insurance activities have been brought under the umbrella of a newly created EPS health insurance provider (known as
the Nueva EPS), which runs alongside existing privately owned EPSs. However, the new EPS has experienced financial difficulties,
owing to the fact that it incorporates a larger number of high-cost, chronically ill patients over the age of 45 than is the case for
private EPSs. In light of this, the six Cajas de Compensación Familiar have been reconsidering whether it is viable for them to
participate in the government's scheme.
However, the government-led system is plagued by underpayment from active workers to healthcare insurance and other social
security funds. With nearly half of the economically active population reported to be earning wages at or below the minimum wage,
there is a growing consensus that the current social insurance system in Colombia - one of the high-profile reforms of the present
government - appears unable to remain structurally viable over the longer term. This could offer a larger market for independent
health insurance organisations.
Company Profile
AXA Colpatria
SWOT Analysis
Strengths • One of the largest non-life insurers, with a significant presence in life insurance.
• Element of the Colpatria group, which is strategically aligned with Canada's Scotiabank.
• Seguros Colpatria has been a 51% subsidiary of AXA since April 2014.
• Has access to global capital and reinsurance.
• Broad product portfolio.
• Multi-channel distribution.
• Strength in marketing to wealthier demographic and corporate clients.
Weaknesses • Particular lines may not have been growing.

• Focus on one national market - Colombia.
Opportunities • Well placed to benefit from growth of Colombian economy.

• New distribution arrangements.
• New product development.
Threats • Competition in basic non-life lines.

• Vulnerable to economic downturn which hits domestic companies and SMEs (an outcome that we do not
expect).
Company Overview
AXA Colpatria is the composite insurance business of the Colpatria financial conglomerate, the central aspect of which is the
Colpatria universal bank. Since late 2011, Canada's Scotiabank has owned 51% of the universal bank.
AXA Colpatria provides a broad portfolio of products through multiple channels to 1.3mn clients. It is the second largest provider of
property & casualty lines (with a 9%) market share. It is the fourth largest provider of workers compensation (14% market share) and
the second largest player in the capitalisation bond market (with a 42% market share). It is also a top 10 provider of life and
voluntary health insurance (with respective market shares of about 4% and 5%).
Latest Updates
The group announced they will be offering a new line of products at USD15 or less, including health services for just USD5.
At the end of Q119, it was announced that the group had 7.2% of the market share for Colombia’s general insurance sector, putting
it in joint 3rd place with Previsio Insurance and 5.9% in the life sector in 5th place.
Strategy
In our view, both the Colpatria brand as well as access to the nationwide network of a leading Canadian bank subsidiary, have been
the key strengths of Seguros Colpatria. The relatively small numbers of clients (except for the lives covered through work risk
insurance plans) in a country of nearly 48mn people suggests that Colpatria has been focusing on higher income demographics
and corporate customers. It remains to be seen what the impact of the new association with AXA will be. However, we would expect
that new initiatives will reflect enhanced access to capital and product innovation know-how. AXA's acquisition shows that the
French titan sees Colombia as being similar to Mexico, Turkey and Hong Kong: a large emerging market that offers the prospects for
strong and profitable growth in both life and non-life insurance.
Financial Data
AXA Group Results H118
• Gross revenues of EUR53.6bn

• Underlying earnings of EUR3.3bn
• Adjusted earnings of EUR3.6bn
• Net income of EUR2.8bn
• Solvency II ratio of 233%
The latest specific financial data for AXA Colpatria (as opposed to the whole AXA group) is for 2016.
Liberty
SWOT Analysis
Strengths • One of the leading players in the non-life segment, with a significant presence in the life segment.
• Backing of global Liberty Mutual group.
• Broad product portfolio in both of the major segments.
• Access to global capital and reinsurance markets.
Weaknesses • Middle-weight company in life segment, which is growing more rapidly.

• Comparatively limited ability to distribute through banks.
Opportunities • Further development of size and/or productivity of agency network.

• Potential acquisition of smaller rivals.
Threats • Potential volatility in Colombian financial markets.

• Competition from strong rivals, in particular sub-sectors.
• Potential natural catastrophe claims.
Company Overview
Boston-based Liberty Mutual employs 45,000 people and is present in 17 countries in North and South America, Asia and Europe. It
has been present in Colombia since 1997. In Colombia, Liberty's personal lines are comprehensive and include CMTPL and
voluntary motor insurance home cover, health insurance, civil liability and life products. Liberty provides corporate clients with
group motor fleet cover, workplace risks insurance, group life, group health and transport insurance.
Liberty distributes through multiple channels. It has a nationwide branch network, including 64 offices in about 24 cities across
Colombia. Liberty Seguros has 800 employees.
Latest Updates
Liberty Life Insurance Colombia (Liberty de Seguros Vida) was purchased by Seguros Bolivar on October 17 2019, along with the
occupational risk insurance arm. However, Liberty will continue to operate its general insurance arm (Liberty Seguros Generales) in
Colombia.
Liberty Mutual Insurance has completed its acquisition of various Spanish entities, including AmTrust Insurance Spain. Meanwhile
Hamilton Insurance Group has purchased Liberty’s UK assets: Pembroke Managing Agency Limited and Ironshore Europe DAC.
Strategy
Along with Allianz, following its acquisition of Colseguros, and MAPFRE, Liberty is one of the leading foreign composite groups that
sees Colombia as an attractive market. Relative to the leading Colombian groups, which have the advantages of very well
established brands and the ability to distribute through associated universal banks, Liberty appears to be relying on the strengths
that come from being a world-class multinational company and on a large and efficient agency force. We note that the company
benefits too from the breadth of its product portfolio and the ability to innovate, as well as extensive online client services tools.
Liberty continued to expand its Latin American operations through mid-2015, with the acquisition of Chilean insurance firm
Compañia de Seguros Generales Penta Security, which is one of the largest non-life providers in the country. The acquisition, which
was reportedly worth USD163mn, is Liberty's third in Chile, following the purchases of units belonging to European composites
Allianz and ING.
Financial Data
Group Results Q119
• Net income of USD671mn (up by USD23mn y-o-y)

• Net written premiums of USD9.66bn (up by 2.8% y-o-y)
• Pre-tax operating income of USD663mn (increase of over 60% y-o-y)
MAPFRE
SWOT Analysis
Strengths • Massive scale of global operations.
• Reduction of risk that comes from broad geographic footprint, spanning Spain, Portugal, Latin America and
some other countries.
• Access to global capital markets and reinsurance.
• Strong brand in Latin America and Colombia.
• Strong capabilities in both life and non-life insurance in Colombia, with a broad product portfolio.
• Multi-channel distribution and nationwide branch network.
• Product leader in micro-insurance, with over 1.5mn customers.
Weaknesses • Relatively small size of non-life operation relative to competition.

• Comparative lack of access to banks as distribution channel.
Opportunities • Development of new products.

• New distribution arrangements in particular markets.
Threats • Potential volatility in Colombian financial markets.

• Competition from strong rivals in particular sub-sectors.
• Potential natural catastrophe claims.
Company Overview
Originally founded in 1933 as the Mutualidad de Seguros de la Agrupación de Fincas Rústicas de España, MAPFRE is a Spanish
based multi-national composite insurance group that operates in 44 countries through multiple distribution channels and,
generally, with a single brand. It provides a broad range of non-life/ property & casualty, health, and life/long term savings products,
although the exact offerings vary from market to market. MAPFRE operates in six general regions: IBERIA (Spain and Portugal); Brazil
(through the joint ventures with local insurance giant BB Seguridade); LATAM South (Argentina, Colombia, Chile, Ecuador, Paraguay,
Peru, Uruguay and Venezuela); LATAM North; North America (Canada, the USA and Puerto Rico); EMEA (Turkey and Malta); APAC
(mainly the Philippines, but with small operations in various other countries, including a distribution agreement with People's
Insurance Company (Group) of China). The group considers its reinsurance business separately. MAPFRE entered Colombia in 1984
through its first investment in Seguros Caribe, of which it became the majority shareholder in 1993. MAPFRE sees its businesses in
Colombia as forming part of its LATAM South region. Other countries include Chile, Venezuela, Argentina and Peru. In Colombia,
MAPFRE operates as a composite group, with a broad range of products, including group and individual life, motor vehicle insurance,
home insurance, travel insurance, cover for motorists, other personal lines and diverse corporate lines. There are smaller MAPFRE
subsidiaries providing credit insurance and reinsurance.
Across Colombia, MAPFRE has around 160 offices, of which about one-third are directly owned, and the remainder are franchised or
operated by brokers. MAPFRE distributes through multiple channels, including directly via branches, agents and external brokers.
Latest Updates
2019:
MAPFRE has to cover the costs of the damage following the collapse of the Hidroituango dam in 2018, as recently decreed by
Empresas Publicas de Medellin.
MAPFRE has purchased a 10% stake in financial advisory firm Abante Asesores, part of its wider strategy to expand its asset
management business.
The company has launched a digital strategy plan for 2019-2020 to revitalise its global presence. This forms part of the larger
strategy of geographical diversification and internal restructuring.
In Q119 Mapre had 6.8% of the market share for general insurance, placing it in 5th place.
Strategy
MAPFRE's strategy in Colombia involves the leveraging of the group's regional/global strengths to maintain a substantial position in
insurance markets that are likely to grow quite quickly over the medium term. The company has established its brand, has
expanded its product portfolio, runs a nationwide branch network and distributes through multiple channels. The company aims to
derive 75% of its total revenues from its overseas (non-Spanish) operations by 2020.
Financial Data
2019
MAPFRE revenues for the first three quarters of 2019 have been reported at EUR21.6bn, a 6.5% increase y-o-y. In addition, the
group announced premium sales had risen by 2.5% during the same period, to EUR17.65bn.
2018
• Revenue of EUR26,589mn (down by 5% y-o-y)

• Total written premiums of EUR22,537mn (down by 4% y-o-y)
• Of which EUR17,060mn were for non-life and EUR5,476mn were for life
Seguros Bolívar
SWOT Analysis
Strengths • The second-largest player in Colombia's life segment and a major player in the non-life segment.
• Backed by the third largest financial conglomerate in Colombia.
• Has access to global capital and reinsurance.
• Broad product portfolio, including key non-life lines and more niche products.
• Multi-channel distribution networks.
Weaknesses • Particular lines may not have been growing due to intense marketplace competition.
• Sociedades Bolívar has the benefit of foreign operations, but is not really a true regional player.
Opportunities • Par excellence, a beneficiary of the general growth of the Colombian economy.
• A major beneficiary of improvements in perceptions of risk associated with Colombia.
• Cross selling via Banco Davivienda and other channels.
• Overseas expansion within Latin America region.
Threats • Competition in basic non-life lines, particularly due to growing presence from multinationals.
• Volatility in Colombian financial markets.
• Potential deterioration in perceptions of Colombian risks.
Company Overview
Seguros Bolívar is the composite insurance operation of Sociedades Bolívar, the third largest financial conglomerate of Colombia.
Like Suramericana and Seguros Colpatria, Seguros Bolívar, along with its sister company Seguros Comercial Bolívar, offers a
comprehensive range of personal and corporate lines in the non-life segment, as well as a broad variety of individual and group
insurance/savings offerings in the life segment. Among other life offerings, Seguros Bolívar sells capitalisation bonds (títulos de
capitalización). These are savings plans over prescribed periods that pay a defined return and which enable the customer to
participate in lotteries (much like the capitalização bonds which are an important business for life insurers in Brazil). Bolívar also
offers work risks covers and health insurance.
It has a network of around 27 branches and a similar number of agencies across 22 cities in Colombia. Distribution is also through
the branch network of Banco Davivienda, the main universal banking operation of Grupo Sociedades Bolívar. The other investments
of the conglomerate are focused mainly on construction and real estate.
Davivienda has a presence in El Salvador, Honduras, Costa Rica, Panama and Venezuela. Seguros Bolívar operates in El Salvador,
Honduras and Costa Rica. Another group insurance subsidiary, Seguros Colvida, is present in Ecuador.
Latest Updates
Seguros Bolivar has completed its acquisition of Liberty Life Insurance Colombia (Liberty de Seguros Vida) on October 17th 2019,
along with the occupational risk insurance arm.
Strategy
As is the case for Suramericana and Seguros Colpatria, Seguros Bolívar is well placed to benefit from the generally favourable trends
that are underway in Colombia. A key tactic thus far has been to partner with multinational insurers entering the market and to act
as their representatives in the market, rather than competing with them directly. Obvious strengths that can be leveraged include
the distribution of a broad range of products through various channels; these include the branch network of Banco Davivienda -
both in Colombia and elsewhere. The company has also been successful in leveraging technology in order to reduce costs and
increase efficiency and profitability. This has allowed the firm to reduce its head count from 1,600 workers in the 1990s to about
900 at present. Seguros Bolívar is following opportunities in foreign markets, but these are currently small in relation to the main
business in Colombia. Going forward, Seguros has stated its commitment to innovation and to increasing its product offering.
Financial Data
Group Results 2018
• Assets of COP6,201.6bn
• Operational income of COP2648bn
• Of which, premiums issued of COP1,537bn
• Pretax revenues of COP231.8bn
• Net income of COP207.8bn
Suramericana
SWOT Analysis
Strengths • The largest player in both the non-life and (by a wide margin) the life segments in terms of premiums written
in Colombia.
• A subsidiary of Grupo de Inversiones Suramericana, a leading Latin American conglomerate.
• Access to capital.
• Germany's Munich Re owns 19% of Suramericana.
• Strong brands.
• Broad product portfolios in both the non-life and life segments.
• Providing work risks and health insurance through designated subsidiaries.
• Life insurance sales and, outside auto, non-life premiums are growing rapidly.
• Multi-channel distribution.
• Access to reinsurance markets.
Weaknesses • Particular lines (including the very important voluntary motor insurance line) are hardly growing.
• Non-life claims ratios have been rising, if slowly.
Opportunities • Par excellence, a beneficiary of the general growth of the Colombian economy.
• A major beneficiary of improvements in perceptions of risk associated with Colombia.
• Cross selling via Bancolombia and other channels.
• Cross selling to clients of Sura Asset Management.
• Overseas expansion.
Threats • Competition in basic non-life lines.

• Volatility in Colombian financial markets.
• Potential deterioration in perceptions of Colombian risks.
Company Overview
Grupo de Inversiones Suramericana (GRUPOSURA) is a listed Colombian financial services group with diverse interests, including
Grupo Bancolombia. Bancolombia was formed in 1998 as a result of the merger between Banco Industrial Colombiano and Banco
de Colombia. It is the largest universal bank in the country, with total assets of around USD60bn. GRUPOSURA has a 27% stake in
Grupo Bancolombia, with institutional investors (both domestic and foreign) accounting for the rest.
Following the mid-2011 purchase of the Latin American businesses of Dutch group ING, Grupo de Inversiones Suramericana's Sura
Asset Management operation is also a leading player in pensions, savings and investment across the region, with a presence in
Mexico, Peru, Chile and Uruguay - as well as Colombia. GRUPOSURA's stake in Sura Asset Management is 67%. Minor shareholders
include Bolívar, General Atlantic, the World Bank's International Finance Corporation, JP Morgan and Grupo Wiese.
GRUPOSURA's non-financial investments are quite diverse. They include: food holding company Grupo Nutresa (35% interest);
Argos, Latin America's fifth largest cement company which accounts for half of the market in Colombia and which has a presence in
Panama, Venezuela, Haiti, the Dominican Republic and the United States (29% interest, although Grupo Nutresa owns an additional
10%); seven other companies operating in the food, construction and services sectors.
Suramericana is an 81% subsidiary of GRUPOSURA, a German insurance giant accounts for the remaining 19% interest. Through its
various subsidiaries, Suramericana is active in both the life and the non-life segments. It also owns businesses that provide work risk
covers (ARL Sura) and which provide health insurance, pre-paid medicine and healthcare (EPS Sura).
Suramericana can, therefore, be thought of as a composite insurance company with a broad range of offerings in both the non-life
(including health and work risks insurance) and life segments of Colombia. As noted above, Sura Asset Management has a regional
presence. Outside Colombia, Suramericana also offers insurance products in the Dominican Republic, Peru, Chile, Panama and El
Salvador.
Within Colombia, Suramericana offers an extremely broad range of individual and corporate lines. Within the non-life segment, it is a
provider of motor vehicle insurance (CMTPL or SOAT as it is known in Spanish in Colombia) and voluntary hull insurance, home and
contents products, and other personal lines. Suramericana also offers corporate multi-risk covers, transport insurance, civil liability
covers, engineering insurance and surety insurance. As noted above, health insurance and work risks insurance are offered through
designated subsidiaries. In the life segment, Suramericana offers traditional group and individual covers, savings plans and annuities.
Suramericana distributes through multiple channels. In addition, to direct and online sales, it has a nationwide branch network. It
also distributes through brokers and the branches of Bancolombia (life/savings and home products).
Latest Updates
Suramericana accounted, in conjunction with Seguros de Vida Alfa, for over 50% of all life insurance premiums issued over the first
half of 2019
Khiron Life Sciences, a Canadian cannabis producer, has signed a partnership agreement with EPS Sura, a Colombian health
insurance provider and part of the Suramericana group. The partnership will start with a pilot programme investigating integrated
health service provision for neurological issues
Sura Re, part of Grupo de Inversiones Suramericana S.A. has been upgraded from negative to stable by Moodys. This is part of a
wider improvement in the Colombian insurance sector as economic growth stabilises and consumers increasingly look to make use
of disposable income.
Strategy
Looking forward, it appears that Suramericana needs to do little to be the main beneficiary of the double-digit growth that we
anticipate for both the non-life and the life segments. Obvious advantages include its current market share, the breadth of the
product portfolio (across both major segments) and the multi-channel distribution. One of the reasons why Suramericana has good
reason to describe itself as the leading insurance group that is actually based in Latin America (ie, unlike MAPFRE or Allianz, for
instance, which are based elsewhere) is the ability to cross sell. It operates as a bancassurer in conjunction with Bancolombia, the
country's largest universal banking group. Sura Asset Management, a sister company, is serving millions of clients in Colombia (and
elsewhere). The geographic footprint of Sura Asset Management and Suramericana serve to reduce the risks that would normally
be associated with operating in a single Latin American market.
Financial Data
Suramericana Results Q2 2019
• Written premiums up by 12.3%, COP 6.1bn

• Y-t-D net income down 33% to COP173,771mn
• The company attributes this to an increase on life insurance tax, higher reinsurance costs in the property and casualty segment,
and a reduction in mandatory healthcare policy purchases.
Insurance Methodology
Industry Forecast Methodology
Our industry forecasts are generated using the best-practice techniques of time-series modelling and causal/econometric
modelling. The precise form of model we use varies from industry to industry, in each case being determined, as per standard
practice, by the prevailing features of the industry data being examined.
Common to our analysis of every industry, is the use of vector autoregressions. Vector autoregressions allow us to forecast a
variable using more than the variable's own history as explanatory information. For example, when forecasting oil prices, we can
include information about oil consumption, supply and capacity.
When forecasting for some of our industry sub-component variables, however, using a variable's own history is often the most
desirable method of analysis. Such single-variable analysis is called univariate modelling. We use the most common and versatile
form of univariate models: the autoregressive moving average model (ARMA).
In some cases, ARMA techniques are inappropriate because there is insufficient historic data or data quality is poor. In such cases,
we use either traditional decomposition methods or smoothing methods as a basis for analysis and forecasting.
We mainly use OLS estimators and, in order to avoid relying on subjective views and encourage the use of objective views, we use a
'general-to-specific' method. We mainly use a linear model, but simple non-linear models, such as the log-linear model, are used
when necessary. During periods of 'industry shock', for example poor weather conditions impeding agricultural output, dummy
variables are used to determine the level of impact.
Effective forecasting depends on appropriately selected regression models. We select the best model according to various different
criteria and tests, including but not exclusive to:
• R2 tests explanatory power; adjusted R2 takes degree of freedom into account;

• Testing the directional movement and magnitude of coefficients;
• Hypothesis testing to ensure coefficients are significant (normally t-test and/or P-value); and
• All results are assessed to alleviate issues related to auto-correlation and multi-co linearity.
Sector-Specific Methodology
In constructing these indices, the following indicators have been used. Almost all indicators are objectively based.
Our insurance reports provide detailed insight into insurance markets globally, examining both the present conditions in and
prospects for each market. Incorporating the most up-to-date information available from sources such as industry regulators, trade
associations, comparable information from other countries and our own economic and risk data, our analysts provide a
comprehensive picture of the insurance sector. The principal focus of the reports is on gross written premiums, to which 'premiums'
refers unless otherwise stated.
The following are considered in our reporting of the sector:
• We consider health insurance to be included in the non-life sector. As such, in instances where sources report health insurance
as part of the life sector, the required adjustments are made to conform to our standardised definitions.
• Where a market contains a significant inward reinsurance sector, these accepted premiums are considered as part of the non-life
sector and are classed within the 'Other' category of our non-life breakdown.
• Life insurance contains all long-term savings products that are legally structured as insurance products and therefore do not
contain pension plan contributions and other long-term saving schemes that are not legally constituted as being within the
insurance sector.
Life
In projecting life insurance premiums, the following are considered:
• The likely development of population.

• The likely development of life density (life premiums per capita).
• Wider macroeconomic trends.
In some instances, further factors are considered, including:
• Maturity of the life insurance sector.

• Competitive and regulatory environments.
• Life density in nearby markets at similar levels of development.
Non-Life
In projecting non-life insurance premiums on a line-by-line basis, the following are considered:
• The likely development of nominal GDP.

• The likely development of non-life penetration (non-life premiums as a percentage of GDP).
• Autos sector data, typically passenger car fleet size.
• Banking sector data, typically Client Loans figures.
• Shipping/Freight data, typically freight tonnage.
• Household stratification data, typically number of permanent properties.
• Healthcare data, typically private health expenditure.
In some instances, further factors are considered, including:
• Maturity of the non-life insurance sector.

• Competitive and regulatory environments.
• Non-life penetration in nearby markets at similar levels of development.
Reinsurance and Net Premiums
When forecasting the size of reinsurance markets, the following are considered:
• Historic levels of reinsurance coverage in both life and non-life sectors.

• Projected development of the life and non-life sectors.
• Prevalence of reinsurance in similar markets.
Where applicable, 'net premiums' refers to net written premiums and is considered as gross written premiums, less the cost of
reinsurance. In some instances, source data is reported according to different definitions of 'net premiums'. In these cases, this data
is used and forecasts for net premiums and reinsurance are made separately.
When forecasting net premiums independently of the reinsurance market, the following are considered:
• Historic levels of net premiums in both life and non-life sectors.

• Projected development of the life and non-life sectors.
At a general level we approach our forecasting from both a micro and macro perspective, taking into account the expansion plans
of relevant domestic and international firms, as well as wider economic outlook. In this regard, macro variable projections, such as
output, consumption, investment, policy, and GDP growth are employed.
Burden of Disease
The 'burden of disease' in a country is forecasted in disability-adjusted life years (DALYs) using our Burden of Disease Database,
which is based on the World Health Organization's burden of disease projections and incorporates World Bank and IMF data.
Risk/Reward Index Methodology
Our Risk/Reward Index (RRI) provides a comparative regional ranking system evaluating the ease of doing business and the
industry-specific opportunities and limitations for potential investors in a given market.
The RRI system divides into two distinct areas:
Rewards: Evaluation of sector's size and growth potential in each state, and also broader industry/state characteristics that may
inhibit its development. This is further broken down into two sub categories:
• Industry Rewards (this is an industry specific category taking into account current industry size and growth forecasts, the
openness of market to new entrants and foreign investors, to provide an overall score for potential returns for investors).
• Country Rewards (this is a country specific category, and the score factors in favourable political and economic conditions for the
industry).
Risks: Evaluation of industry-specific dangers and those emanating from the state's political/economic profile that call into
question the likelihood of anticipated returns being realised over the assessed time period. This is further broken down into two sub
categories:
• Industry Risks (this is an industry specific category whose score covers potential operational risks to investors, regulatory issues
inhibiting the industry, and the relative maturity of a market).
• Country Risks (this is a country specific category in which political and economic instability, unfavourable legislation and a poor
overall business environment are evaluated to provide an overall score).
We take a weighted average, combining market and country risks, or market and country rewards. These two results in turn provide
an overall risk/reward score, which is used to create our regional ranking system for the risks and rewards of involvement in a
specific industry in a particular country.
For each category and sub-category, each state is scored out of 100 (100 being the best), with the overall risk/reward index a
weighted average of the total score. Importantly, as most of the countries and territories evaluated are considered by us to be
'emerging markets', our indices is revised on a quarterly basis. This ensures that the index draws on the latest information and data
across our broad range of sources, and the expertise of our analysts.
Our approach in assessing the risk/reward balance for infrastructure industry investors globally is fourfold:
First, we identify factors (in terms of current industry/country trends and forecast industry/country growth) that represent
opportunities to would-be investors.
Second, we identify country and industry-specific traits that pose or could pose operational risks to would-be investors.
Third, we attempt, where possible, to identify objective indicators that may serve as proxies for issues/trends to avoid subjectivity.
Finally, we use our proprietary Country Risk Index in a nuanced manner to ensure that only the aspects most relevant to the
infrastructure industry are incorporated. Overall, the system offers an industry-leading, comparative insight into the opportunities/
risks for companies across the globe.
INDICATORS
Rewards
Insurance market rewards Rationale
Non-life premiums, 2017 (USDmn) Indicates overall sector attractiveness. Large markets more attractive than small ones.
Growth in non-life premiums, five years to

Indicates growth potential. The greater the likely absolute growth in premiums the better.
end-2021 (USDmn)
Premiums expressed as % of GDP. An indicator of actual and (to an extent) potential

Non-life penetration, %
development of non-life insurance. The greater the penetration the better.
Non-life segment measure of openness Measure of market's accessibility to new entrants. The higher the score the better.
Life premiums, 2017 (USDmn) Indicates overall sector attractiveness. Large markets more attractive than small ones.
Growth in life premiums, five years to end-2021

Indicates growth potential. The greater the likely absolute growth in premiums the better.
(USDmn)
Premiums as % of GDP. An indicator of actual and (to a certain extent) potential

Life penetration, %
development of life insurance. The greater the penetration the better.
Life segment measure of openness Measure of market's accessibility to new entrants. The higher the score the better.
Country rewards
GDP per capita (USD) A proxy for wealth. High-income states receive better scores than low-income states.
Those aged 16-64 in each state, as a % of total population. A high proportion suggests
Active population
that market is comparatively more attractive.
Corporate tax A measure of the general fiscal drag on profits.
GDP volatility Standard deviation of growth over 7-year economic cycle. A proxy for economic stability.
Measure of financial sector's development, a crucial structural characteristic given the

Financial infrastructure
insurance industry's reliance on risk calculation.
Risks
Regulatory framework
Regulatory framework and development Subjectively evaluates de facto/de jure regulations on development of insurance sector.
Regulatory framework and competitive

Subjectively evaluates impact of regulatory environment on the competitive landscape.
landscape
Country risk (from our Country Risk Index)
Long-term financial risk Evaluates currency volatility.
State's vulnerability to externally induced economic shock, which tend to be principal

Long-term external risk
triggers of economic crises.
Policy continuity Evaluates the risk of sharp change in broad direction of government policy.
Legal framework Strength of legal institutions. Security of investment key risk in some emerging markets.
Bureaucracy Denotes ease of conducting business in a state.
Source: Fitch Solutions
Weighting
Given the number of indicators/datasets used, it would be inappropriate to give all sub-components equal weight. Consequently,
the following weighting has been adopted:
WEIGHTING OF INDICATORS
Component Weighting, %
Rewards 70, of which
- Industry rewards 65
- Country rewards 35
Risks 30, of which
- Industry risks 40
- Country risks 60
Source: Fitch Solutions
Fit
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using the service on a trial basis). All such content is copyrighted in the name of Fitch Solutions Group Limited and as such no part of this content may be reproduced,
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whatsoever for any loss or damage resulting from opinion, errors, inaccuracies or omissions affecting any part of the content.
This report from Fitch Solutions Macro Research is a product of Fitch Solutions Group Ltd, UK Company registration number 08789939 ('FSG'). FSG is an affiliate of Fitch
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Q1 2020

Industry Risk/Reward Index ....................................................................................................................................................18

HEADLINE INSURANCE FORECASTS (COLOMBIA 2016-2023)

Gross non-life premiums written, COP, %

Gross non-life premiums written, USD, %

Key Updates And Forecasts

Strong Recovery Projected For 2020

e/f = Fitch Solutions estimate/forecast. Source: Superintendencia Financiera, Fitch Solutions

Life Insurance Premiums: Substantial Growth Potential

Purchasing Power And Demographic Trends

f = Fitch Solutions forecast. Source: National sources, Fitch Solutions

LIFE PREMIUMS (COLOMBIA 2016-2023)

Gross life premiums written, % of gross

Claims: Capital Inflows To Support Development Of Market

LIFE INSURANCE CLAIMS (COLOMBIA 2011-2017)

Non-Life Premiums Forecast

Stable Growth Prospects

e/f = Fitch Solutions estimate/forecast. Source: Superintendencia Financiera, Fitch Solutions

Non-Life Insurance Premiums: Still Offering Substantial Growth Potential

NON-LIFE PREMIUMS (COLOMBIA 2016-2023)

Gross non-life premiums written, COP, %

Gross non-life premiums written, USD, %

Gross non-life premiums written, % of

Gross non-life premiums written, % of

Claims: Maintaining Cost Control

Motor Leading Claims Costs

Source: Superintendencia Financiera, Fitch Solutions

NON-LIFE INSURANCE CLAIMS (COLOMBIA 2009-2017)

Non-Life Sub-Sector Forecast

Motor Leading The Market

f = Fitch Solutions forecast. Source: Superintendencia Financiera, Fitch Solutions

Motor Insurance: Mature Line Still Offering Growth Potential

Sturdy Growth Outlook Ahead

e/f = Fitch Solutions estimate/forecast. Source: FASECOLDA, Fitch Solutions

Vehicle Fleet Size

e/f = Fitch Solutions estimate/forecast. Source: Ministerio de Transporte, Fitch Solutions

Transport Insurance: Recovering From Short-Term Dip

Stable Demand Set to Continue

e/f = Fitch Solutions estimate/forecast. Source: Superintendencia Financiera, Fitch Solutions

Property Insurance: Second Most Important Line

Growth Rates Falling

e/f = Fitch Solutions estimate/forecast. Source: Superintendencia Financiera, Fitch Solutions

Health Insurance: Significant Opportunities Available

NON-LIFE INSURANCE PREMIUMS BY PRODUCT LINE (COLOMBIA 2016-2023)

Motor vehicle insurance,

Motor vehicle insurance,

Motor vehicle insurance,

Property insurance, COP,

Transport insurance, COP,

Indicator 2016 2017 2018e 2019f 2020f 2021f 2022f 2023f

insurance, COP, % y-o-y

Health insurance, COP, %

General liability insurance,

General liability insurance,

General liability insurance,

Other insurance, COP, % y-

Other insurance, % of non-

Industry Risk/Reward Index

LATIN AMERICA AND THE CARIBBEAN INSURANCE RISK/REWARD INDEX

COLOMBIA - LIFE INSURANCE MARKET SHARES, USDMN (2013-2018)

Suramericana Vida 1,204.7 1,291.2 1,030.8 1,037.9 1,198.9 986.1

Bolivar Vida 398.0 399.1 335.5 345.9 465.6 519.7

Positiva 1,089.2 364.6 287.1 288.5 345.8 362.7

Allianz 567.5 275.9 191.4 242.5 236.6 277.6