Fitch: Colombian Insurance Sector Stable for 2016

BOGOTA, Colombia--(BUSINESS WIRE)-- Link to Fitch Ratings' Report: 2016 Outlook: Colombian Insurance (Challenge to Grow Profitably in a Less Favorable Environment)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=876189

Fitch Ratings' sector and Rating Outlooks for the Colombian insurance industry are stable. There is a high likelihood Fitch will affirm the ratings of most Colombian insurance companies in 2016, despite the challenging economic environment that will moderate growth projections. Regulatory changes in reserves may temporarily affect operating performance and leverage ratios. The industry's financial strength will remain adequate.

Fitch expects modest premium growth of 6% - 8% for 2016. Profitability will be challenging due to a moderate growth scenario, highly competitive environment, and the impact of the new reserves regulations. Net income will be affected by high volatility in capital markets.

Fitch believes the industry's capital and reserves position will continue to strengthen through higher technical reserves, which are calculated under international standards and more robust methodologies.

The insurance market in Colombia continues to be attractive to new participants. Fitch believes Colombia's economy is more resilient compared with other Latin American markets. The implementation of infrastructure projects and market size determine the market's growth potential.

This publication is based on public information disclosed by Financial Superintendence and also from data owned by the rating agency regarding the sector; the information analyzes the perspectives regarding growth, profitability, capitalization, given ratings and regulatory changes.

The full report:'2016 Outlook: Colombian Insurance' is available at 'www.fitchratings.com' and 'www.fitchratings.mx.' or by clicking on the link above.

Additional information is available at 'www.fitchratings.com'.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160119006199/en/

Fitch Ratings
Milena Carrizosa
Director
+57 1 3075180
Fitch Ratings Colombia
Calle 69 A No. 9-85
Bogota, Colombia
or
Johann Goebel
Director Asociado
+57 1 326 9999
or
Eduardo Recinos
Senior Director
+503 2116 6606
or
Media Relations:
Elizabeth Fogerty, +1 212-908-0526
[email protected]

Source: Fitch Ratings

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