Profits dented by volatile stock exchange market

Insurers stay in the black at P343bn but this is a marked deterioration on the P1.2trn reported last year

The Colombian Insurers’ Federation (FASECOLDA) reports that premium income during the first three quarters of 2006 reached 5.24trn pesos (US$2.34bn), 13.3% more than in 2005. However, profits were only 343bn pesos (US$153.2mn), far less than the 1.2trn pesos (US$536mn) reported last year, due to a large degree to the volatility of the stock exchange market. Non-life business represents 2.5trn pesos (US$1.12bn), showing a growth of 12.4%. In this segment motor business grew 17.6% especially due to the higher number of new car sales (up 42% in August 2006).