Friday, June 6, 2014
ICES, a monthly indicator that measures confidence in Brazilian insurers, fell for the fourth consecutive month in May, to its lowest level since the index began 19 months ago.
The index fell from 94.3 points in April to 92.3 points in May, according to a report by local trade body Fenacor. In May last year industry confidence was above 115 points.
The monthly index, based on interviews with around 60 insurers, ranges from zero to 200, with 100 indicating an expectation that the economy will neither improve nor worsen over the next six months.
According to the survey, 48% of insurers expect the Brazilian economy to deteriorate over the next six months, while 52% expect it to remain broadly unchanged.
In terms of insurers’ profitability, 69% of insurers expect to see no change, while 16% expect improved results and 15% are predicting a fall in profitability.
The survey also showed that 71% of insurers expect no change in revenues over the next six months, while 17% of respondents expect further growth and 12% expect income to decline.