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Munich Re Report of the Board of Management
Latin America In the year under review, Latin America contributed a total of
DM 346 million to the Group’s premium income, following DM 440 million
in the previous year. The decline of 21.4 % is due to the negative effects
of changes in exchange rates.
Gross premiums in DM million
249
303
392
440
346
1991 1992 1993 1994 1995
Gross premium by country
Mexico 25 %
Colombia 22 %
Argentina 11 %
Other 25 countries 42 %
In Latin America, too, we have traditionally ensured that our clients and the
market as a whole are well served on the spot through a local presence.
For many years we have been represented in Latin America’s most
important markets by our own service companies. We intend, moreover,
to maintain our position as the leading reinsurer in this part of the world.
To this end we have equipped ourselves for the challenges of rapidly
changing market conditions and client requirements, as well as of
increasing competition, by means of appropriate adjustments in our
organization.
The economic difficulties in Mexico, the prolonged economic crisis in
Venezuela and the recent political uncertainties in Colombia ought not to
have a lasting negative influence on Latin America’s further development.
On the whole, a stabilization of this economic area can be expected.
Given this environment, new business opportunities in many direct
insurance and reinsurance markets in the region should be considerable
in the medium term. This applies particularly to Mexico, Argentina and
Chile, but also to Colombia, Venezuela and Peru. We are prepared for the
abolition of the reinsurance monopoly in Brazil, the largest Latin American
insurance market, where we will also be directly present and aiming to
assume a leading position among the foreign reinsurers.
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