Fitch Ratings this week announced a stable outlook for the Colombian insurance industry today. The stable sector outlook reflects Fitch’s expectation that the key credit metrics of the Colombian insurance sector will remain broadly stable and the industry will manage to navigate through upcoming challenges of 2015.
Fitch expects growth of the Colombian insurance sector to be around 8% to 10%, however, persistent challenges still remain. Profitability of the insurance industry will be pressured by a highly competitive environment and volatility in the capital markets, but will benefit from overall favorable economic conditions.
Fitch expects to further strengthen its capital levels due to regulatory reserve requirements related to the implementation of the new regulatory framework.
Fitch cautioned that their outlook is based on public information disclosed by Colombia’s Financial Superintendence and also from the rating agency’s proprietary data regarding the sector. The information analyzes the perspectives regarding growth, profitability, capitalization, given ratings and regulatory changes.
The publication ‘2015 Outlook: Colombian Insurance Sector’ is available at ‘www.fitchratings.com’ or ‘www.fitchratings.com.co’