Asesuisa profits fall 13% in H1 on claims, costs

El Salvador's second largest insurer Aseguradora Suiza Salvadoreña ( Asesuisa) reported consolidated net income of US$2.41mn for the first half of 2004, down 13% from the same period last year, according to a statement from the company. Net premiums rose 27% to US$30.1mn, while premiums ceded increased 26.6% to US$19.4mn. Net financial income grew 47.6% to US$428,000. Premiums should grow at a slower pace in the second half than that during the six months ending June 30, Asesuisa CEO Ricardo Cohen told BNamericas, with life being the main growth driver. Claims increased 17.5% to US$11.7mn, while policy acquisition and retention costs rose 14.3% to US$5.52mn. Claims will probably grow at a similar rate in the second half of the year, Cohen said, but that will depend on whether there are large scale events. Administrative expenses increased 14.3% to US$1.2mn. Asesuisa's assets grew 3.8% to US$43.9mn, with the financial investment component increasing 37.6% to US$20.1mn. On the other side of the balance sheet, mathematical reserves increased 19% to US$3.1mn, while claim reserves rose 12.8% to US$3mn. Equity was nearly unchanged at US$14.3mn. El Salvador's top five insurers last year in terms of net premiums were: SISA, Asesuisa, La Centro Americana, Compañía General de Seguros, and Aseguradora Agrícola Comercial.