Fitch: Brazilian Insurance Sector Outlook - 2012

RIO DE JANEIRO & NEW YORK--(BUSINESS WIRE)-- According to Fitch Ratings, the Brazilian insurance and reinsurance companies assessed by the agency are prepared to face a scenario of higher competition and the challenges of the sector, and it does not foresee any significant problems of adjustment to the economic scenario in the short term.

The clear signs of economic slowdown since the second half of 2011 (2H'11) has led to expectations for a more moderate premium growth in 2012 compared with the high 21.8% expansion observed up to 1H'11. Even so, Fitch does not expect that growth in 2012 will fall far short of the average growth of in the past five years and believes that the market could return to its sustainable growth trajectory following economic recovery.

The Brazilian insurance market continues to be the largest in Latin America, despite the low historical penetration of the sector (around 3.5% of GDP) similar to that observed in other emerging markets.

The full report 'Brazilian Insurance Sector Outlook - 2012: Moderate Growth and High Competition' is available on the Fitch website at 'www.fitchratings.com' or 'www.fitchratings.com.br.'

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research: 2012 Outlook: Brazilian Insurance Sector Outlook (Moderate Growth and Higher Competition)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=660204

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Fitch RatingsMaria Rita Goncalves, +55 21 4503-2600Senior directorFitch Ratings Brasil LTDAPraca XV de Novembro 20, 401B - Rio de Janeiro - RJ - BrazilorEsin Celasun, +55 21 4503-2600Associate directororFranklin Santarelli, +1-212-908-0739Managing directororMedia Relations:Brian Bertsch, +1-212-908-0549Email: [email protected]

Source: Fitch Ratings