June 15, 2021 - The Financial Market Commission (CMF) released today its Financial Report of the Insurance Market as of the first quarter of fiscal year 2021.
Insurance companies recorded sales for USD 2,538 million between January and March 2021, a real decrease of 15.4 percent compared to the same period last year. Meanwhile, profits reached USD 587 million, increasing by 2,405.4 percent versus the first quarter of 2020.
The investment portfolios of both life and general insurance companies were mainly composed of domestic fixed-income instruments - 55.8 and 74.8 percent, respectively.
Sales in the life insurance market amounted to USD 1,513 million at the end of the first quarter of 2021, a real decrease of 25.1 percent compared to the same period in 2020. General insurance market sales, however, grew by 4.4 percent during the same span, totaling USD 1,025 million.
The life insurance market posted USD 531.4 million in profits between January and March 2021, a higher figure than the same period last year. Better investment results during that span and a low comparison base recorded in the first quarter of 2020, which was affected by the initial effects of the Covid-19 pandemic in the financial market, explain this result.
General insurance companies had profits worth USD 55.2 million in the first three months of the year, a real increase of 142.1 percent versus the same period last year. An increase in contribution margins, mainly due to lower costs of claims, is behind this result.