At a glance: LatAm's fastest growing insurance markets in 2016

Premium growth in Latin America decelerated in 2016.

Life premiums grew by an inflation-adjusted 5%, down from 7.6% in 2015 and below the 8.9% average annual growth rate seen in the last decade, reinsurance giant Swiss Re says in its Sigma report.

Non-life premium growth was a negative 3.7%, compared with positive 2.8% the previous year.

The reinsurer says the slowdown in demand "mirrors the economy."

GDP growth in Latin America was weak, because "Brazil remained mired in the worst economic crisis in decades: GDP contracted by 3.6% in 2016 after a 3.8% decline in 2015," the report says.

THE REGION

Premium volume for the region was US$148.5bn in 2016, down from US$160.9bn in 2015.

But the report reveals that some markets bucked the trend significantly. Mexico saw total premium volume in local currency increase by an inflation-adjusted 10.8% in 2016 to 456.1bn pesos. Costa Rica performed even better, posting 654.7bn colones, up 16.1%. The Dominican Republic reported 40.6bn pesos, up 12.0%. Brazil (253.1bn reais) and Colombia (23.8tn pesos) eked out 1.1% and 3.1% growth, respectively, and Argentina (211.0bn pesos) reported a 16.8% drop – the biggest fall behind that seen in Ecuador, which saw volume fall 28.7% to US$1.62bn. In nominal terms, Argentina saw 17.3% growth.

REGION'S LIFE SEGMENT LEADERS BY PREMIUM GROWTH

The top three fastest-growing markets by life insurance premium volume last year were Costa Rica, the Dominican Republic and Uruguay.

Costa Rica saw premium volume expand 41.1% to 101.9bn colons, while in the Dominican Republic premium volume grew 16.1% to 7.45bn pesos, and premiums climbed 15.0% in Uruguay to 14.7bn pesos.

Premiums also grew in Brazil (6.3%), Mexico (11.8%), Chile (3.3%) and Colombia (9.9%). In Argentina, premiums shrank 25%, but grew by 5% in nominal terms.

REGION'S NON-LIFE SEGMENT LEADERS BY PREMIUM GROWTH

The top three fastest-growing non-life markets by premium volume last year were Costa Rica, Dominican Republic and Mexico.

Costa Rica saw premium volume rise 12.4% to 552.8bn colons, the Dominican Republic saw growth of 11.1% to 33.1bn pesos and premium volume in Mexico was up 10.0% to 247.0bn pesos.

Premium volume contracted 4.9% in Brazil and 15% in Argentina (19.8% growth in nominal terms), while the volume rose 0.3% and 3.9% in Colombia and Chile, respectively. The biggest drop was in Ecuador, at 33.4%.