At a glance: Paraguay's 5 biggest insurers

Thirty-five players were competing in the Paraguayan insurance arena in the second half of last year, according to the central bank, which oversees the industry.

Following the recent announcement in local press of insurer and reinsurer Aseguradora Yacyreta's purchase of 100% of Grupo General de Seguros, the field is poised to shrink.

Both are middleweight players and compete in the P&C and life segments.

Local press reported Yacyreta chairman Norman Harrison as saying the move was executed to create "new opportunities and service alternatives for their clients."

Following the process, Yacyreta will have more than 22,000 clients, over 25,000 vehicles insured, and a network of 200 agents and brokers, according to local press.

Yacyreta wrote 65.4bn guaraníes (US$10.8mn) in direct premiums for July to December, while Grupo General wrote 37.0bn guaraníes. The system total for the period was 1.29tn guaraníes.

Both are profitable operations, according to central bank data. Yacyreta reported earnings of 7.45bn guaraníes for the period and Grupo General 1.66bn guaraníes. Overall sector earnings were 112bn guaraníes.

Insurers enjoy favorable macroeconomic conditions. The IMF, following a staff visit to the country in October, said it expected Paraguay's GDP to grow 4% this year. In its World Economic Outlook, the organization said it expected inflation to print at 4.2%, around the midpoint of the central bank's 2.0-6.0% target range.

Paraguay has made headway in combating poverty, although last year still 18% of the population was estimated to be living under the US$5.5 poverty line, the World Bank said.

PARAGUAY'S FIVE BIGGEST INSURERS BY DIRECT PREMIUMS

No. 1

The biggest player is the local unit (life and P&C) of Spanish giant Mapfre, which reported 228bn guaraníes in direct premiums for July-December.

No. 2

Local reinsurer and insurer Aseguradora del Este (life and P&C), which came under the control of the Ribeiro Leoz group in 2003, posted 151bn guaraníes.

No. 3

Another local player, La Consolidada (P&C), held the third spot with direct premiums of 131bn guaraníes.

No. 4

Ranked fourth Aseguradora Yacyreta had 65.4bn guaraníes in direct premiums.

No. 5

Insurer and reinsurer Patria (P&C and life), a unit of domestic commercial lender Banco Continental, posted 64.9bn guaraníes. The bank, according to its 2017 annual report, has a 64.0% stake in Patria as well as a 2.65% stake in La Consolidada.

ALSO READ: At a glance: Paraguay's 7 biggest profit generators