Seguros G&T profits climb 16% in H1

Guatemala's largest insurer Seguros G&T reported consolidated net income of 20.5mn quetzales (US$2.6mn) in the first half of 2004, an increase of 16.5% from a year ago, according to financial system regulator SIB statistics. Strong profit growth was driven by higher retained premiums and financial income, coupled with modest growth in claims. G&T's net premiums rose 6.6% to 243mn quetzales, while retained premiums increased 18.8% to 158mn quetzales. Net financial income rose 12.6% to 13.4mn quetzales. Policy acquisition costs increased 14.7% to 38.3mn quetzales, while claims rose 8% to 84.1mn quetzales. Administrative costs were up 12.5% at 30.7mn quetzales. The company's assets increased 9.2% to 426mn quetzales, with the financial investment component growing 5% to 286mn quetzales. Technical and mathematical reserves fell 20% to 198mn quetzales, while equity increased 14.6% to 91.3mn quetzales. G&T reported ROE and ROA of 44.9% and 9.5% for the half, compared to 25.9% and 7.3% for the industry. The company had a claims ratio of 55.9%, compared to 54.3% for its peers. Seguros G&T is part of local financial group Corporación G&T, which also controls surety and insurance companies Fianzas G&T, Comercial Aseguradora Suizo Americana Casa, and Comercial Afianzadora as well as the country's second largest bank SIB supervises 18 insurance companies. The top five had the following market share in terms of net premiums: Seguros G&T (21%); Seguros El Roble (14.6%); Aseguradora General (9.2%); Seguros Universales (8%); and Seguros de Occidente (7%).