Brazil insurance industry shows weak H1 growth

Brazil's insurance industry saw a weak growth in the first half of the year as the strong performance in the vehicle segment was offset by a contraction in the pension segment.

Written premiums, including savings bonds but excluding health insurance, totaled 118.8bn reais (US$30.4bn), up 0.8% from the same period of 2017, according to data from regulator Susep that was compiled by insurance confederation CNSeg.

Vehicles insurance premiums saw a rise of 7.5%, while contributions to private pension plans declined 5.1% in H1.

The pension segment has been hurt by record-low interest rates, a slow economic recovery and uncertainty related to the October general elections, said Lauro Faria, an economist at Escola Nacional de Seguros, which is the research department of CNseg.

Brazil will hold presidential elections on October 7 with polls showing centrist candidates who are in favor of fiscal reforms struggling to gain traction.