...Insurance Growth Still Decoupled from Peru's Lagging Economy Peru's gross written premiums (GWP) have shown a sharp rise in the first half of 2015 (16.2%), in contrast with the economy's performance slowdown. The bulk of insurance segments experienced widespread growth, led by non-life business (19.9%) and bounded in part by lower relative growth in annuities (9.2%), previsional line (13.8%) and work disability (1.4%). Fitch believes that the stronger GWP growth of midsize insurers during the first half of 2015 (30% or above) continues to press margins and competitiveness, but the industry is still profitable, leaving ample room for growth in an underpenetrated insurance market. The intense competition, recent mergers and new entities operating in the market anticipate a progressive, yet albeit slow, business deconcentration in the medium and long term. As of June 30, 2015, 54.7% of total GWP remains concentrated in the two largest insurer groups (representing 71.4% of total net income),...
