Fitch Rating's sector and rating outlooks for the Colombian insurance industry are both stable. 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 the challenges of 2015.
Fitch expects growth of the Colombian insurance sector to be around 8% and 10%, in nominal terms. However, challenges persist for the sector. Profitability of the insurance industry will be pressured by a highly competitive environment and volatility in the capital market, but will benefit from 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.
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.
'2015 Outlook: Colombian Insurance Sector' is available at 'www.fitchratings.com' and 'www.fitchratings.com.co' or by clicking on the above link.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research: 2015 Outlook: Colombian Insurance Sector (Positive Balance in 2014; Great Challenges for 2015)
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=848169
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