The Financial Market Commission (CMF) released today its Financial Report of the Insurance Market as of the first half of fiscal year 2021.
Insurance companies recorded sales for USD 5,231 million between January and June 2021, a real decrease of 6.3 percent compared to the same period last year. Meanwhile, profits reached USD 871 million, increasing by 158.5 percent versus the first half of 2020.
The investment portfolios of both life and general insurance companies were mainly composed of domestic fixed-income instruments – 55.6 and 75.2 percent, respectively.
At the end of the first half of 2021, life insurance market sales declined by 12.9 percent compared to the first half of 2020, amounting to USD 3,114 million. General insurance market sales, however, grew by 5.3 percent during the same span for a total of USD 2,117 million.
The life insurance market registered USD 754.7 million in profits, a higher figure versus the previous period. Better investment results and a low comparison base recorded in the first half 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 116.4 million in the first six months of 2021, a real increase of 18.2 percent compared to the same period last year, mainly due to an increase in the contribution margin and lower costs of claims.
This news item was originally published by the Commission for the Financial Market (CMF CL). For more information, please see the Source Link.