sigma 2/2011

sigma

1 Executive summary

3 Global economy: uneven recovery, interest rates remain very low

7 World insurance: recovery on track

13 Industrialised countries: recovery at diverging speeds

19 Emerging markets: China leads growth

27 Methodology and data

29 Statistical appendix

No 2/2011

World insurance in 2010 Premiums back to growth – capital increases

Published by:Swiss Reinsurance Company LtdEconomic Research & ConsultingP.O. Box 8022 ZurichSwitzerland

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Authors:Daniel StaibTelephone +41 43 285 8136

Lucia BevereTelephone +41 43 285 9279

EditorBrian Rogers +41 43 285 2733

Managing editor:Thomas Hess, Head of Economic Research & Consulting, is responsible for the sigma series.

The editorial deadline for this study was 30 May 2011.

sigma is available in English (original language), German, French, Spanish, Chinese and Japanese.

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© 2011Swiss Reinsurance Company LtdAll rights reserved.

The entire content of this sigma edition is subject to copyright with all rights reserved. The information may be used for private or internal purposes, provided that any copyright or other proprietary notices are not removed. Electronic reuse of the data published in sigma is prohibited.

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Order no: 270_0211_en

1

Swiss Re, sigma No 2/2011 1

Executive summary

After two years of falling premium volume, the global insurance industry returned to positive growth in 2010. Total premium volume rose by 2.7% in real terms¹ to USD 4 339bn, above pre-crisis levels. Capital has been fully restored in the non-life sector. While capital continued to recover in life, solvency remained below pre-crisis levels. Because interest rates remained at historically low levels, investment returns and therefore overall profitability were adversely affected.

In 2010, the global economy continued to recover, which supported demand for insur-ance. GDP growth was particularly strong in developed and emerging Asia. Capital markets continued to stabilise due to the low interest rate environment and rising corporate profits.

Real growth rates

–10%

–5%

0%

5%

10%

15%

20%

25%

200

8

2010

200

6

200

4

200

2

200

0

199

8

199

6

199

4

1992

199

0

198

8

198

6

198

4

1982

198

0

Total Non-life Life

Source: Swiss Re Economic Research & Consulting

Global life insurance premiums increased by 3.2% in 2010. Asian emerging markets and a number of large continental European markets contributed the most to growth. In the US and the UK, premiums continued to decline, although at a slower pace com-pared to 2009. The capital position of life insurers continued to recover. Improved sales, lower lapses and higher capital gains on financial assets supported operating margins. However, profitability continued to remain low due to low interest rates.

Global non-life insurance premiums rose by 2.1% in 2010. In emerging Asia and the newly industrialised countries in the region, the strong economic rebound pushed up non-life premium growth, while soft pricing continued to slow growth in Europe and the US, except in a few countries in selected lines of business. Consequently, under-writing results deteriorated further in 2010, despite average natural catastrophe losses and continuing reserve releases. Overall profitability remained low, as capital gains on invested assets only partially offset low investment yields. Nevertheless, capitali-sation reached record highs.

In 2011, the economic recovery is expected to continue, supporting premium growth in life and non-life insurance in the industrialised countries and emerging markets. Profitability in both sectors will continue to be low, as interest rates are expected to rise slowly. The devastating earthquakes in Japan and New Zealand are likely to result in higher prices in those countries and help to stop the trend of softening rates worldwide.

¹ All premium growth rates provided in this study are in real terms, ie adjusted for inflation, which is measured by local consumer price indices.

Real premium growth 2010

Life Non-life TotalIndustrialised countries 1.8% 1.0% 1.4%Emerging markets 13% 8.5% 11%World 3.2% 2.1% 2.7%

Figure 1Real premium growth since 1980

Life premiums are growing, but profitability is still low.

Non-life growth is still weak in the indus-trialised countries, but strong in Asia.

2

2 Swiss Re, sigma No 2/2011

Executive summary

Overall, the insurance industry has recovered well from the crisis. Demand for insur-ance in the emerging markets is expected to continue to grow strongly in the coming years. Ageing societies will provide ample opportunities for life insurers. However, insurers face a number of challenges ahead, such as: The economic recovery could be derailed by an escalation of the European sovereign

debt crisis or an oil price shock. Regulatory reform, eg Solvency II, could lead to overly stringent capital requirements,

which would undermine profitability, but also affect policyholders. As market risks will also be considered under Solvency II, life insurers and non-life insurers active in long-tail business lines will face higher capital requirements.

An escalation of the public debt crisis in the peripheral European countries would lead to a significant write-down of insurers’ assets, as insurers hold sovereign debt and bonds issued by banks, which are also likely to suffer under such a scenario.

This study contains the latest market data available at the time of going to press. For most insurance markets, final 2010 figures were not available. Therefore, this sigma also contains provisional data released by supervisory authorities and insurance associations, or Swiss Re Economic Research & Consulting estimates. Overall this study is based on data for the countries which account for more than 99% of global life and 98% of non-life premiums.

The insurance industry has recovered well from the crisis, but challenges remain.

3


Global economy: uneven recovery, interest rates remain very low

The economic recovery from the deep recession continues

The recovery of the world economy that began in mid-2009 continued in 2010, supporting the growth of insurance premiums. World gross domestic product (GDP) grew by 4.0%² in real terms to USD 63tr in 2010. In the US and Western Europe, growth was solid, but varied significantly by country. Due to the severity of the recession, overall growth has been slow, especially in comparison to past recovery phases. The recovery was weak in Central and Eastern Europe, which suffered from a severe recession in 2009, but much stronger in Asia and Latin America.

–2% 0% 2% 4% 6% 8% 10%

Annual average growth rate 2000–2009Growth rate 2010

Middle East and Central Asia

Africa

Central and Eastern Europe

Latin America and the Caribbean

South and East Asia

Emerging markets

Oceania

Japan and newly industrialised Asian economies

Western Europe

North America

Industrialised countries

World

Real growth rates

Remarks: Countries' GDP weighted with market exchange rates. Source: Oxford Economics, WIIW, Swiss Re Economic Research & Consulting

The crisis has accelerated the shift of economic power to the emerging and newly industrialised Asian countries, where the economies recovered swiftly and currencies strengthened. The GDP of emerging Asia increased to 18% of global GDP (see Figure 3), while emerging market GDP accounted for 35% of world GDP in 2010 (2000: 21%). During the same period, real GDP per capita in the BRIC (Brazil, Russia, India, China) economies increased sharply, from 30% in Brazil to 150% in China. The demand for insurance is likely to rise as wealth in the emerging markets increases.

² The aggregation of countries is weighted by US dollar GDP (gross domestic product) based on market exchange rates. International statistics using purchasing-power parity show higher world GDP growth rates because of their heavier weighting of fast-growing countries such as China and India.

The economic rebound continued in 2010, driven by Asia and Latin America.

Figure 2Real GDP growth by region

Emerging market GDP accounted for 35% of global GDP.

4



0%

20%

40%

60%

80%

100%

North America, Western Europe and Oceania*

Developed AsiaEmerging Asia

% of global GDP

Non-Asian Emerging Markets

201020082000

60.8%

17.9%

9.6%

11.6%

57.3%

11.0%

15.1%

16.6%

53.4%

12.1%

17.7%

16.8%

* Excluding TurkeySource: Oxford Economics, WIIW, Swiss Re Economic Research & Consulting

While inflation rose in 2010, except in a few countries, it remained below the levels observed in 2008, and was mainly driven by rising food and energy prices. Inflation increased more in the emerging markets, as food and energy represent a higher share of consumer expenditure. Because unemployment in the developed countries remained high and capital utilisation in the industry remained relatively low, core inflation in the developed countries was contained. As a result, it was not expected to significantly drive up claims costs for non-life insurers.

Equity markets continue to recover while interest rates slowly rise

Stock markets around the world continued their recovery in 2010. As a result, the capi-tal positions and investment returns of insurers improved. Demand for unit-linked life insurance products strengthened. However, volatility remained high due to concerns about the strength of the economic recovery and the sovereign debt of the peripheral European countries.

40

5060708090

100

110120130140150 Share index, local currency, 31 December 2009 = 100

US (DJ Industrials)

Germany (Dax 30)

Japan (Nikkei 225)

France (MSCI France)

UK (FTSE 100)

MSCI Emerging Markets

May

11

Mar

11

Jan

11

Nov

10

Sep

10

July

10

May

10

Mar

10

Jan

10

Nov

09

Sep

09

July

09

May

09

Mar

09

Jan

09

Nov

08

Sep

08

July

08

May

08

Mar

08

Jan

08

Source: Datastream

Figure 3Contribution to world GDP by main regions

Higher inflation, particularly in the emerging markets, was mainly driven by rising food and energy prices.

The stock market recovery continued in 2010.

Figure 4Stock market recovery in 2010 interrupted by the looming European sovereign debt and banking crisis in the first half of the year

5


Interest rates remained at historically low levels in 2010. In fact, at the end of 2010, long-term interest rates were between 0.2pp and 0.6pp lower than at the end of the previous year. This has bolstered the accounting capital of insurers by increasing the value of bond portfolios, although the resulting low investment returns have also hurt profitability. While the narrowing of credit spreads in 2010 was interrupted by the euro sovereign debt crisis, default rates on corporate bonds decreased signifi-cantly. This development has improved insurers’ balance sheets and led to reduced write downs on the corporate bond portfolio.

Long-term interest rates

US Germany France Japan UK

0%

2%

4%

6%

8%

10%

12%

14%

2010

200

9

200

8

2007

200

6

200

5

200

4

200

3

200

2

2001

200

0

199

9

199

8

1997

199

6

199

5

199

4

1993

1992

1991

199

0

Source: Datastream

High oil prices and the euro area debt crisis pose risks to the economic outlook, low interest rates remain a challenge

While the world economy is expected to continue to recover, the political turmoil in the Middle East and North Africa (MENA) and the euro area debt crisis have increased uncertainty. The main threat to the global economy from the events in the MENA region is rising oil prices. A further price shock could be triggered by a spillover of the turmoil to Saudi Arabia, which accounted for 12% of global oil production in 2009. Though this is unlikely, a disruption of the oil supply from Saudi Arabia would have a much bigger impact on prices than the disruption of the oil supply from Libya, which accounts for 2% of global oil production. In contrast, the triple disaster (earthquake, tsunami and the severe nuclear accident) in Japan is most likely to have only a minor and temporary effect on the global economy, as long as nuclear pollution does not spread to a much larger area. The natural catastrophes in Japan, Australia and New Zealand in early 2011 will affect the underwriting results of domestic and global insurance companies, and could lead to higher prices in those markets. This could in turn stop the trend of softening rates in the global non-life insurance sector.

Interest rates continued to be very low; this undermined profitability, but supported the accounting capital position of insurers.

Figure 5Long-term government bond yields remained extremely low throughout the year

Turmoil in the MENA region and the earth-quake in Japan have increased uncertainty, but the economic recovery is likely to continue.

6


A slowdown of the economic recovery would undermine growth in insurance demand. If the slowdown is triggered by an escalation of the sovereign debt crises of Greece, Ireland and Portugal, it would have wider consequences for insurers. An uncontrolled default in one of these countries would likely impair European banks, which are large holders of sovereign debt securities. This could reignite a banking crisis similar to that in autumn 2008. Insurers would be affected in several ways. For example, if there are write-downs on corporate bonds issued by banks, insurers would be affected because they hold significant amounts of these securities. Second, insurers would face write-downs on their direct holdings of sovereign debt securities. Third, other risky assets would also lose value as economic growth would falter, further impairing the asset side of insurers’ balance sheets. Finally, another crisis would also have important medium-term consequences: interest rates would likely remain low for a prolonged period of time, depressing insurers’ investment returns and profitability. Governments could levy extraordinary taxes on the financial sector to restore fiscal balance sheets, as Hun-gary did in 2010. Excessive capital requirements would restrict the insurance industry and lead to negative consequences for policyholders and the economy.

While central banks have started to raise interest rates to curb inflationary concerns, there is no clear trend that long-term yields are rising. As interest rates are expected to rise only gradually, insurance sector profitability will be under pressure for some time. This is because it often takes several years for higher interest rates to impact profitability.

An escalation of the euro sovereign debt crisis would have severe consequences for insurers.

Low interest rates will likely hamper profitability for some time.


7


Global insurance premiums return to growth

Direct premiums written in the global insurance industry rose 2.7% in 2010 to USD 4 339bn after two years of contracting premium volumes. While premiums in the emerging markets grew strongly (+11%), premium growth was still weak in the industrialised countries (+1.4%).

The capital base of the industry continued to strengthen in 2010. Demand for insurance is expected to rise as the recent natural catastrophes in Japan and Oceania have high-lighted the importance of non-life insurance in mitigating the financial impact of cata-strophic events, which are still underinsured in the emerging market countries. Due to the ageing of the population, the role of life insurance is also likely to increase, especially as governments are under pressure to reduce budget deficits and address the huge liabilities of their old-age provision.

Real growth rates

–10%

–5%

0%

5%

10%

15%

20%

2010

200

8

200

6

200

4

200

2

200

0

199

8

199

6

199

4

1992

199

0

198

8

198

6

198

4

1982

198

0

Total Industrialised countries Emerging markets


Excessive regulation of the insurance sector could slow growth. While modern regula-tory regimes, such as Solvency II, which takes a risk-based and economic view, would support insurance growth, policy makers may be tempted to adopt overly stringent capital requirements and other measures to make the industry 100% crisis-proof. This could affect the profitability of insurance companies, leading to negative conse-quences for policyholders and the economy. While onerous capital requirements may appear to provide additional protection for policyholders, they can create distortions that ultimately harm policyholders. For example, excessive capital charges for asset risk will force life insurers out of higher performing yet more volatile corporate bonds and stocks, reducing returns attributable to policyholders and insurers’ profitability. In addition, excessive capital charges could also be undesirable from a macroeconomic perspective, as less risk capital would be available to finance growth.³

Life insurance: growth in developed markets remains sluggish, while emerging markets resume growth

PremiumsIn 2010, global life insurance premiums grew by 3.2% to USD 2 520bn. This is higher than the ten-year average (see Figure 7) and just below the pre-crisis average (2000–2007). Growth in the industrialised countries was in line with the ten-year average. In some continental European countries growth was strong, driven by single-premium products with attractive guarantees. This growth is, however, likely to eva porate once interest rates rise. In the US and the UK, the decline continued in 2010, although at a significantly reduced pace. Among the industrialised Asian economies, Japan stag-nated, while Taiwan, Singapore and Hong Kong experienced double-digit increases.

³ Swiss Re, sigma No 3/2010 Regulatory issues in insurance.

Total premiums grew 2.7% to USD 4 339bn in 2010.

The insurance sector has successfully emerged from the financial crisis, and the growth prospects for both life and non-life are strong.

Figure 6 Premium growth strengthens in mature and developing markets

Overly stringent capital requirements could harm the insurance sector, policyholders and economic growth.

Global life premiums rose 3.2% in 2010 after falling 0.8% in 2009.

World insurance: recovery on track

8





Africa



South and East Asia

Emerging markets

Oceania


Continental Europe

Western Europe

North America


World

Real growth rates

–5% 0% 5% 10% 15% 20%


Growth of life insurance in the emerging markets in 2010 nearly reached the pre-crisis level, although large differences exist among regions and countries. Growth continued to be strong in emerging Asia (+18%). In China, the largest emerging market, premiums expanded by 26%, while elsewhere in the region, premium growth was more moderate. In Latin America, growth was solid and broad based. In Central and Eastern Europe, premium growth rebounded after a sharp decline in 2009, driven in many countries by strong sales of unit-linked savings products.

No data > –20% –20% – –10% –10% – –5% –5% – 0% 0% – 5% 5% – 10% 10% – 20% > 20%


Figure 7Life insurance: growth resumes, but below pre-crisis level

Figure 8Life: real premium growth in 2010

9


Life insurer profitability and capital position Statutory risk capital improved in 2010 driven by stronger earnings and inflows from the capital markets. The capital recovery was partially amplified by accounting effects that tend to overestimate the assets (valued at market value) and undervalue the liabili-ties (valued at book value). These unrealised gains on fixed income portfolios, which make up the largest share of life insurers’ assets, will disappear once interest rates rise or bonds mature, partially offsetting the capital recovery.

Risk capital [2010 USD bn, LHS]

0

200

400

600

800

1000

1200

1400

201020092008200720062005200420032002200120000%

10%

20%

30%

40%

50%

60%

70%

Solvency ratio [risk capital/premiums, RHS]

Source: Supervisory authorities

The operating margins⁴ of life companies stabilised below pre-crisis levels in 2010. The main drivers of profitability were improved sales, low lapses (except in the UK), higher realised capital gains and the stock market recovery, which contributed to the strong performance of the variable annuity business. On the negative side, low interest rates resulted in low investment yields. Also, the low equity exposure limited the extent to which life insurers were able to benefit from improving stock markets.

Life outlookPremium growth in life is expected to continue in 2011. Growth is expected to remain strong in the emerging markets and turn positive in the US. In Western Europe, premium growth could slow slightly, as rising interest rates will make life policies with interest rate guarantees less attractive.

Profitability will remain below pre-crisis levels for some time. In the medium to long term, the macro environment will be crucial for life insurance profitability. However, regulatory reforms could adversely impact profitability. With higher charges on risky investments (under Solvency II), life companies will be forced to shift assets into less risky asset classes, such as highly rated government and corporate bonds. Insurers will also be required to set aside more capital for long-term guarantees under the new regulatory environment. This might reduce profitability and partially erode the attrac-tiveness of savings products with fixed guarantees.

⁴ Operating margin is defined as operating profit as a % of premiums written. Operating profit equals operating income minus operating expenses, where operating income is the sum of premiums written, the investment result, other technical income and fees. Operating expenses equal the sum of benefits paid, the increase in technical provisions, allocated surpluses and other technical expenses.

Life insurers' profitability and risk capital continued to recover in 2010.

Figure 9Risk capital and solvency development in life insurance (based on sample of countries: UK, Germany, France, Italy, Netherlands, Switzerland, US, Canada, Japan, Australia, China, India, Brazil, Chile, Turkey, Poland)

Life premiums should continue to expand in 2011…

... but profitability will remain below pre-crisis levels.

10



Non-life: global premiums growing, but only slowly in the US and Western Europe

PremiumsAfter declining in 2008 and 2009, global non-life premiums grew by 2.1% to USD 1 819bn in 2010. This is only slightly below the ten-year average, but clearly below the pre-crisis average. Growth was solid in the newly industrialised Asian economies, particularly in Korea (+15%) and Singapore (+8.1%). In contrast, the flat development of premium volume in the US continued to drag on average growth in the industrialised countries. Premiums in Western Europe and Oceania grew, but only slightly. Sluggish premium growth overall in the industrialised countries reflected the ongoing softening of prices in many countries and lines of business.

–4% 0% 4% 8% 12% 16% 20% 24%



Africa



South and East Asia

Emerging markets

Oceania


Continental Europe

Western Europe

North America


World

Real growth rates


On the back of a very solid economic performance, non-life premiums in emerging Asia sharply increased by 22%, boosted by a 28% premium increase in China. Within emerging Asia, China accounted for 73% of the region’s non-life premiums in 2010. Growth was solid in the Middle East and Central Asia as well as in Latin America. In Central and Eastern Europe, non-life premiums continued to decline overall and in most of the major countries, with the exception of Poland.

No data > –20% –20% – –10% –10% – –5% –5% – 0% 0% – 5% 5% – 10% 10% – 20% > 20%


Non-life premiums increased again in 2010.

Figure 10Non-life insurance premium growth: recovering, but still below the long-term average in the industrialised countries

Figure 11Non-life: real premium growth in 2010

11


Catastrophe losses⁵ Natural catastrophes cost the global insurance industry roughly USD 40bn in 2010, while man-made disasters triggered additional claims of more than USD 3bn. By comparison, overall insured losses totalled USD 27bn in 2009. Despite notably higher-than-average earthquake losses, overall catastrophe claims in 2010 were roughly in line with the ten-year average due to unusually modest US hurricane losses. The 11 March Tohoku Earthquake, which falls into Japan’s 2010 financial year, is expected to be the most costly event for Japan’s insurance industry.

Profitability⁶ In 2010, the overall profitability of the non-life industry remained low. The after-tax return on equity was 6% due to soft pricing and low interest rates. Underwriting results deteriorated further in 2010. The average combined ratio of the eight leading markets rose to 103 %, compared to 101% in 2009, but was 95% as recently as 2006. The actual underwriting profitability, however, was likely to be even worse, as 2010 results from the US and large European insurers suggest that the 2010 underwriting results were supported by reserve releases of about four percentage points.

Aggregate of US, Canada, France, Germany, Italy, UK, Japan and Australia

–15

–10

–5

0

5

10

15

20

Capital gains/losses as a % of net premiums earned

Current investment income as a % of net premiums earned

Underwriting result as a % of net premiums earned

2011201020092008200720062005200420032002200120001999

After-tax return on equity (%)

estimates /forecasts


Underwriting results fell the most in the US and turned negative in the large European markets due to dismal motor results. Earnings were stable in the European personal lines and commercial businesses. In some markets, such as Italy and the UK, rates began to rise in 2010, most notably in the personal motor business. This will positively influence the 2011 performance. In Australia, a series of natural catastrophes (bush fires, floods, storms) led to high insured losses and negative underwriting results.

Investment income as a percentage of net premiums earned fell slightly, as interest rates remained very low. On the positive side, the industry benefited from capital gains on invested assets, in contrast to the two previous years.

⁵ Swiss Re, sigma No 1/2011 Natural catastrophes and man-made disasters in 2010: a year of devastating and costly events.

⁶ The following section describing the performance of non-life insurance is based on the aggregate of eight important markets (US, Canada, UK, Germany France, Italy, Japan and Australia).

Insured losses from natural catastrophes were around the ten-year average.

Profitability remained low due to softening prices, low interest rates and above-average losses from natural catastrophes in Australia.

Figure 12Underwriting results worsened further in 2010

Underwriting results fell in the US and in some European markets, although rates are beginning to rise in some lines of business.

12


Industry capitalisation reaches record highBy the end of 2010, P&C insurers’ capital and solvency had set a new record. The aver-age solvency of the eight leading markets increased from 109% to 118%, exceeding the previous peak of 115% achieved in 2007. This more than compensated for the 20% drop in global capital funds during 2008.

However, the P&C industry’s capital base is likely to be reduced by several develop-ments: Rising interest rates will lead to mark-to-market losses on the bond portfolios. Current capital requirements have risen due to market risks not considered before

the crisis. Rating agencies are also monitoring the industry more closely. Additionally, the EU Solvency II regulations, which explicitly incorporate capital market risks, are expected to tighten capital requirements for asset and underwriting risks.

Reserve adequacy has weakened due to low prices in the recent past. Catastrophe losses have been significantly above average in the first half of 2011.

Aggregate of US, Canada, France, Germany, Italy, UK, Japan and Australia

0

200

400

600

800

1000

1200

Shareholders' equity, USD bnPremiums earned, USD bn

201120102009200820072006200520042003200220012000199920%

40%

60%

80%

100%

120%

140%

Solvency (Capital/Premiums) right-hand scale

estimates /forecasts


Non-life outlookAs the global economic recovery is likely to continue, premium growth in 2011 is expected to remain strong in the emerging markets and improve in the developed markets, although the recovery will be restricted by further rate decreases, particularly in commercial lines of business. In motor, however, increases in rates are likely to drive premium growth. While the costs to insurers of the devastating earthquakes in Japan and New Zealand in the first quarter of 2011 are still unclear, the size of the likely insured loss suggests that rates could rise going forward. Additional factors which could lead to rising prices are: Reserving may soon prove to be insufficient, as aggressive reserve releases in past

years have thinned reserve adequacy. This could lead to adverse reserve develop-ments in 2012.

Rising interest rates will reduce the value of bond portfolios under gap accounting and reduce the capital base significantly.

Stricter solvency regulation (Solvency II) and higher capital requirements will be implemented by rating agencies going forward.

However, since underwriting results will only improve with a lag if rates rise, combined ratios are expected to continue to deteriorate in 2011.

The recovery of capital in the non-life industry continued to strengthen …

… but challenges remain.

Figure 13Non-life insurers' solvency recovered further in 2010

Growth of non-life insurance is likely to strengthen, but will be restricted by softening prices.

A number of factors could lead to higher prices.


13


Diverging developments in life, non-life growing but at low levels

In 2010, total insurance premiums in the industrialised countries increased by 1.4% to USD 3 689bn. In most of these countries, premiums rose. The expansion was strongest in Japan and the newly industrialised Asian countries, but weaker in the US and some European countries. Industrialised countries accounted for 85% of global insurance premiums in 2010 versus 87% in 2009.

Life insuranceAfter falling 1.6% in 2009, life insurance premiums in the industrialised countries recov-ered in 2010, rising 1.8% to USD 2 156bn. The expansion was primarily driven by the newly industrialised Asian economies and a number of large continental European markets (eg Germany, Italy and Ireland). However, premiums in the UK, US, Spain and the Netherlands fell in 2010. In half of the industrialised countries, premium growth surpassed economic growth, increasing insurance penetration.

risingpenetration

fallingpenetrationR

eal p

rem

ium

gro

wth

201

0

Real GDP growth 2010

40%

30%

20%

0%

10%

–10%

–20%

7%5%3%1%0%–1%–3%–5% 9% 11% 13% 15%

Non-life insurance Life insurance GDP


Non-life insuranceNon-life premiums in the industrialised countries increased by 1% to USD 1 533bn in 2010 after slightly decreasing in 2009. As in life, strong demand in the newly indus-trialised Asian economies supported growth, while soft pricing continued to drag on growth in the US and many Western European markets. In the majority of markets, pre-mium growth fell short of economic growth, suggesting falling insurance penetration. Insurance density and penetrationAn average of USD 3 527 per capita was spent on insurance in the industrialised countries in 2010 (see Figure 15); of this amount, USD 2 069 was spent on life insur-ance while USD 1 458 was spent on non-life insurance. Since economic growth was higher than overall insurance market growth, insurance penetration decreased margin-ally to 8.7%. In fact, insurance penetration in the industrialised countries is now lower than at the turn of the century. The main factors behind this are the ongoing soft pricing conditions in non-life and the declining premium volumes in the UK and the US for the second consecutive year.

Total premiums in the industrialised countries rose slightly in 2010.

Life insurance premium income increased by 1.8% in 2010 …

Figure 14Life and non-life premium growth versus GDP growth in the industrialised countries in 2010

… while non-life premiums increased 1%.

Insurance density increased to USD 3 527, while insurance penetration remained roughly constant at 8.7%.

Industrialised countries: recovery at diverging speeds

14




Figure 15Insurance density and penetration in the industrialised countries in 2009

0 1000 2000 3000 4000 5000 6000 7000

Life premiums per capita Premiums as a % of GDPNon-life premiums per capita

GreeceMalta

IcelandCyprus

IsraelSpain

New ZealandPortugal

South KoreaLiechtenstein

AustriaEU, 27 countries

ItalySingapore

GermanyEuroland

TaiwanAustraliaCanada

AverageHong Kong

Japan and newly industrialised Asian economiesNorway

United StatesG7

BelgiumSweden

FinlandFranceIrelandJapan

United KingdomDenmark

LuxembourgNetherlandsSwitzerland

Premiums per capita in USD

Premiums as a % of GDP

15


North America: US life premiums continue to shrink, non-life flat

Life insurance Life premiums in North America declined by 0.6% to USD 558bn in 2010 (2009: –12%). In the US, life premiums fell 0.7% (2009: –13%) due to the still challenging economic environment. New business premiums contracted for the third year in a row, mainly due to the slow recovery of employment and wage growth, although the decline was much less severe than in 2009. Individual life premiums increased modestly as a result of low-er lapses and a rebound in sales of universal life and whole life products, while sales of term products experienced their worst decline on record. Individual annuity premiums declined, as consumers scaled back their purchases of fixed annuities due to unattrac-tive return guarantees and the prospect of rising interest rates. Annuity sales began to recover in the last quarter of 2010, helped by the strong equity market, which has shown renewed interest in variable annuities as a retirement savings vehicle. Group life and annuity premiums increased marginally, reflecting the modest rise in employment and wages. The industry's capital position continued to strengthen in 2010 and capital exceeded its pre-crisis level. L&H profitability improved slightly, driven by stronger earnings from equity-linked business, but remained below its pre-crisis level. In Canada, life premium growth slowed to 1.3% in 2010 (2009: +3.5%). Strong gains in sales of individual life insurance were partially offset by a decline in annuity sales as consumers reduced purchases of fixed annuities. Canadian life companies maintained capital levels well above statutory requirements. Profitability continued to rebound in 2010, driven by improved investment results, but remained below historical norms.

Going forward, US life premiums are expected to rebound in 2011, but growth is pro-jected to be below its long-term trend due to the likelihood of a slow and protracted recovery of employment. In Canada, life premiums are expected to resume trend growth in 2011, due to the stronger economy. Profitability will benefit from rising equity markets and interest rates, but will remain pressured by low investment yields. A return to pre-crisis levels of profitability is expected in 2012 at the earliest. The industry's out-look will also be challenged by regulatory and accounting risks and uncertainties related to US government pressures to raise tax revenues, the capital rules that will apply to “systemically important” life insurers, and the convergence of global accounting rules.

Non-life insurancePremiums written in the non-life sector increased 0.5% to USD 724bn in 2010. Growth of 0.2% in the US marked the first increase since 2006, while Canada saw strong pre-mium growth (+4.3%), driven largely by personal lines. Meanwhile, the profitability of the non-life insurance industry in North America deteriorated in 2010. The combined ratio of US property & casualty insurers, excluding health insurers, rose to 103% in 2010 from 101% in 2009. This was primarily attributable to higher catastrophe losses, sizable underwriting losses in commercial lines, and additional losses from mortgage and financial guaranty insurers. Canadian property & casualty insurers reported a combined ratio that worsened to 101% in 2010 (2009: 100%). While interest rates remained low in 2010, insurers’ investment portfolios continued to recover much of the value lost during the financial crisis. US and Canadian P&C insurers' statutory ROEs fell to 6% and 7%, respectively, only slightly lower than in 2009. The normalisation of capital markets supported the industry's capital strength. The US and Canadian statu-tory surplus increased by 9% and 7%, respectively, during the year.

Looking ahead, the recovery in premium growth in 2011 is expected to continue as the economic expansion gains momentum. Softening of commercial rates has eased slightly and might be halted further by the first quarter 2011 catastrophe losses. However, the industry's growth outlook for 2011 will continue to be mired by competi-tive market pricing, low investment yields, and decreasing reserve adequacy levels.

Life premiums in the US continued to contract, but some products showed improvements.

Annuity sales began to recover in the last quarter of 2010.

In Canada, growth slowed on the back of declining sales of fixed annuities.

US life growth should rebound in 2011, but will remain below the long-term average, while Canada is expected to resume trend growth.

Premiums grew modestly in the US, but profitability of P&C insurers deteriorated.

In Canada, profitability declined on the back of low investment results.

Premiums in 2010 in North America World USD bn market shareLife 558 22%Non-life 724 40%

Real premium growth

■ Growth rate 2010● Annual average growth rate 2000–2009

–1.5%

–1.0%–0.5%

0.0%0.5%

1.0%1.5%2.0%

2.5%

Life Non-life

16



Western Europe: life premiums continued to recover, non-life stagnated

Life insuranceIn 2010, life insurance premiums in Western Europe grew by 2.8 % (2009: +4.0%) to USD 946bn. While growth in the L&H industry overall has resumed, it varied by country. In countries like Italy, Germany and France, life insurers continued to offer relatively attractive interest guarantees in light of the historically low interest rates, thus attracting money from maturing policies as well as from the banking sector. In Denmark, Norway and Belgium, moderate growth resumed in 2010, while in Luxem-bourg, the premium volume increased by more than 22% in real terms, mainly drivenby cross-border business. However, two Western European countries experienced a further decline, although at a slower rate than in 2009. In the UK, the largest life insur-ance market, premiums fell by 3.3%. The most severe decline was observed in the Netherlands, where premiums fell by 13%, due to continued strong competition from tax privileged bank savings products, which grew strongly for the fourth consecutive year. In Spain, life premium volume fell by roughly 9%, after rising 3.3% in 2009.

The outlook is positive, driven by increased demand for protection, savings and pension products as well as reductions in social security benefits. The environment for life insurers is expected to further improve in Western Europe as interest rates increase and macro-economic conditions improve. While trend growth should resume, insurers will face certain challenges. First, the euro crisis is still looming. Direct write-downs on peripheral European government bonds in the event of a debt restructuring would likely be manage-able for the vast majority of life insurers, but the resulting stress in the banking sector could potentially wreak havoc on life insurers, which are significant holders of bank debt. Second, Solvency II, which is economic and risk-based, represents a positive step in terms of insurance regulation and may be adopted by other regulatory regimes around the world. However, key parameters have been significantly tightened in the wake of the crisis and have led to high capital requirements for the most important life insurance products. Insurers are currently looking to develop new products that are more compa-tible with Solvency II. Third, the EU Gender Directive prohibits insurers from setting prices based on gender, despite the fact that research shows that differences exist in terms of the insured risks. The likely outcome will be that prices will increase for both men and women; there is an additional risk that this directive will trigger even more regula -tory changes.

Non-life insuranceNon-life premiums in Western Europe increased slightly by 0.6% to USD 587bn in 2010 (2009: +0.4%). Germany (+1.5%), Italy (+0.1%) and the Netherlands (+1.7%) contri buted most to growth, although many countries in the region experienced premium growth. However, premiums fell in the UK (–1.2%) and Spain (–1.5%). In the UK, strong premium growth in the motor business could not offset declining premium income in the commercial lines business, triggered by a further softening of rates and sluggish foreign risks business. In Spain, premiums declined due to weak economic conditions. Switzerland, Belgium and Denmark also registered marginal declines. The average combined ratio for direct business increased further to 100.4% in 2010 (2009: 98.3%). While the largest European markets unanimously suffered because of the current dismal performance of the motor business, some markets, like the UK and Italy, witnessed significant rate improvements, which should lead to future improve-ments in under writing results. With investment results remaining relatively low due to the prevailing low interest rate environment, the overall net operating results declined further to 8.5% of net premiums earned.

For 2011, premium growth is expected to strengthen. While the economy in Southern Europe and Ireland continues to be weak, the recovery is stronger in the other European countries. Additionally, significant rate increases related to the unprofitable motor insurance business in several countries will also support premium growth, in particular in the largest motor markets such as the UK, Germany, France and Italy. However, overall profitability will remain below average as the commercial lines show no sign yet of rate increases, and investment incomes are expected to remain comparably low, despite the fact that interest rates are slightly rising.

Premiums increased 2.8% in Western Europe.

In most countries, premiums recovered and the industry is back on track.

However, life premiums fell in the UK, Netherlands and Spain.

The fundamental outlook is positive...

... but there are some challenges ahead:

... the euro crisis may negatively impact life insurers’ balance sheets;

... Solvency II will spur insurers to develop new products;

... the EU Gender Directive will have far-reaching consequences, likely to be unfavour-able for insurance customers.

Premiums increased slightly by 0.6%, while combined ratios worsened to 100.4% (2009: 98.3%)

Premiums in 2010 in Western Europe World USD bn market shareLife 946 38%Non-life 587 32%

Real premium growth


–1%

0%

1%

2%

3%

4%

5%

6%

Life Life excl. UK Non-life

17


Japan and the newly industrialised Asian economies: record losses from the Tohoku Earthquake

Life insuranceIn 2010, life premium volume in Japan and the newly industrialised Asian economies increased by 2.4% to USD 609bn (2009: +1.9%). However, premiums written by Japan’s life insurers are estimated to have stagnated in 2010 (2009: +2.2%). Modest growth was observed in individual traditional business, while sales of annuities remained depressed. Significant insurance losses⁷ are expected from the 11 March Tohoku Earthquake (and subsequent tsunami), which resulted in the death and dis-appearance of more than 23 000 people⁸. Apart from death benefits, insurers are also liable for substantial claims from medical and accident insurance. The overall impact on Japanese life insurers, though, is expected to remain manageable. Outside of Japan, insurance premium growth in 2010 ranged from 3.8% in South Korea to 16% in Taiwan. In South Korea, sales of new endowment products drove premium growth. Positive economic growth has helped to underpin life insurance demand in most mar-kets, despite ongoing volatility in equity markets. Overall, profitability is expected to remain stable given the persistently low interest rate environment. In Taiwan, despite positive premium growth, the appreciation of the local currency and the sovereign debt problem in Europe contributed to insurers’ relatively disappointing results.

The outlook for the Japanese life insurance market remains uncertain due to the recent recession, although growth prospects should improve in the second half of 2011. Out-side Japan, robust economic growth is driving demand for both traditional and invest-ment-linked insurance products. The earthquake in Japan could also raise insurance awareness and increase demand for protection-type insurance policies throughout the region. Meanwhile, regulatory changes will continue to have an impact on the opera-tions of life insurers. For instance, the Hong Kong regulator has proposed to set up a policyholders’ protection fund to improve consumer confidence about insurance.

Non-life insurancePremium volume in the industrialised Asian countries increased by 4.2% to USD 183bn. Japan’s non-life insurance premiums are estimated to have increased marginally by 0.6% in 2010 (2009: –0.9%), as further declines in property premiums offset gains in the motor and accident lines of business. Insurance losses were modest before the 11 March Tohoku Earthquake. The earthquake is expected to result in significant indus-try losses, though a precise estimate is still not available. While the government will eventually absorb most losses for household earthquake and nuclear insurance, private insurers will face losses, mainly from property and business interruption claims. In other industrialised Asian markets, non-life premiums continued to expand steadily, whereas South Korea registered strong growth of 15% over the year. Increasing demand for long-term products has driven premium growth in Korea, though profitability was hurt by the rising motor loss ratio. In other markets, growth in accident and health insurance, together with a recovery in external trade, has supported the business expansion of non-life insurers.

Looking ahead, reconstruction will add significant momentum to Japan’s economic growth, particularly towards the end of the current fiscal year. Many corporations will also have to review their insurance coverage in view of the latest combination of extreme events. Both factors will underpin firmer non-life insurance demand and prices in the near future. Outside Japan, insurance business will continue to benefit from robust economic growth and low interest rates. A proposal to re-introduce tariffs for nat cat policies in Taiwan could result in faster premium growth, whilst South Korea’s recent implementation of the revised motor pricing scheme should help to rein in claims escalation. Accelerating inflation, however, could threaten insurance profitability in some markets.

⁷ The 2010 financial year ends March 2011. ⁸ National Police Agency of Japan – Emergency Disaster Countermeasures Headquarters

(as of 16 June 2011)

In 2010, life premiums dropped in Japan, but increased strongly in the other newly industrialised Asian economies.

Strong economic growth will continue to support insurance demand.

Non-life premiums rose in most markets. Major earthquake losses hurt profitability in Japan.

Premiums in 2010 for Japan and the newly industrialised Asian economies World USD bn market shareLife 609 24%Non-life 183 10%

Real premium growth


–1%

0%

1%

2%

3%

4%

5%

6%

Life Non-life

18


Oceania: improvement in 2010; surging nat cat losses in 2011

Life insuranceIn 2010, the regional life premiums in Oceania increased by 2.7% to USD 39bn. In Australia, solid economic growth, boosted primarily by increased consumer spending, drove premium growth. Life insurance direct premiums rose similiarly by 2.6% (2009: –24%) over the year to USD 38bn. Risk products continued to dominate sales, followed by disability products. Profitability in 2010 improved by 4.1% over the preceding year. In New Zealand, total life insurance premiums are estimated to have increased by 5.1% in 2010 (2009: +5.3%). Faster growth was reported in individual and group risk products, while sales of whole life and endowment policies continued to languish.

The recent floods in Queensland and Victoria are expected to have a negative impact on Australia’s economic outlook, although reconstruction will bolster public and private investment spending. Risk awareness has increased as a result of recent earthquakes in New Zealand and Japan. On balance, the growth of the Australian life insurance market is expected to remain stable in the near future. The Australian market is consoli-dating as evidenced by the USD 13bn takeover of the ANZ business of AXA Asia Pacific Holdings Ltd by Australian wealth manager AMP Group. APRA also recently approved the takeover of Tower Australia Group Ltd by Japan's Dai-ichi Life Insurance Company Ltd.

Non-life insuranceIn 2010, non-life premiums in Oceania grew by 2% to USD 42bn. In Australia, insurance premiums are estimated to have increased by 2.3% (2009: +3.9%). Most business lines maintained stable growth over the year. Underwriting results improved in 2010 com-pared to 2009, which was hard hit by the Victoria bush fires and other catastrophic events. In New Zealand, the amount of claims incurred in the 12 months ending September 2010 increased significantly by 13.6% to USD 1.5bn. The overall combined ratio of non-life insurers climbed to 100.6% compared to 97.5% for the preceding 12-month period.

The profitability of Australian and New Zealand non-life insurers will be sharply lower due to losses from the floods in Queensland and Victoria as well as the Christchurch earthquakes. Total insurance losses arising from the January 2011 flood events in Aus-tralia were estimated to exceed USD 2.2bn⁹, while losses from the Christchurch earth-quakes could range between USD 6bn and USD 12bn. However, these losses could be mitigated if prices increase. In addition, the non-life market should benefit from higher property values, the federal government stimulus package and reconstruction spend-ing. In recent years, the number of natural catastrophe events – in terms of frequency and severity – has increased in Australia. The effect of these extreme weather events will continue to have a material impact on the overall profitability of the insurance industry. Meanwhile, the earthquake has resulted in one New Zealand insurer calling in liquidators after facing solvency issues. The government has also announced that it is prepared to bail out the country’s largest insurer, AMI Insurance, if the company is unable to meet its obligations arising from the two Christchurch earthquakes.

⁹ The country was also struck by flood events at the end of 2010, whose damage was estimated to be around USD 2bn

Growth of life premiums remained steady due to rising demand for risk products.

The outlook is stable; risk awareness is rising, but economic growth has been slow.

2010 saw further increases in non-life premiums in both Australia and New Zealand. Underwriting losses are expected in 2011 due to floods and earthquakes.


Premiums in 2010 in Oceania World USD bn market shareLife 39 1.6%Non-life 42 2.3%

Real premium growth


–3%

–2%

–1%

0%

1%

2%

3%

4%

Life Non-life

19


Strong growth resumes in the emerging markets

In the emerging markets, total insurance premiums grew by 11% in 2010 to USD 650bn, signalling a return to the strong growth rates of the past. Emerging markets accounted for 15% of the total global premium volume. In USD terms, growth was almost twice as high as in real terms due to currency appreciation. The strong economic environment clearly supported the development of the insurance segment, but as in the previous years, insurance growth outpaced economic growth (6.7%). Premiums in China, which accounts for a third of the total emerging market premium volume, increased by 26%. Except for Russia, growth was strong in the other BRIC countries – ie Brazil and India. The BRICs are continuing to dominate insurance growth in the emerging markets, accounting for 61% of total emerging market premiums, up from 37% in 2000. Growth was also solid in the rest of emerging Asia, Latin America and the Middle East. However, premiums shrank in Africa and Central and Eastern Europe.

Life insuranceLife premium growth in the emerging markets strengthened in 2010, increasing by 13% to USD 364bn (2009: +6.0%). While overall growth was almost back to the ten-year average, it was still below pre-crisis growth rates, except for Latin America and the Middle East. The regional average growth rates do not reveal the often large differences in growth rates across countries. In emerging Asia, for example, the boom in China pushed up overall growth in the region, while in Central and Eastern Europe, slow growth in Poland, the largest regional market, dragged down regional growth.

Non-life insuranceNon-life premiums grew by 8.5% to USD 286bn in 2010 (2009: +3.1%). Despite strong growth in 2010, non-life premiums in the emerging markets were still slightly below the ten year average. Premiums rose the fastest in China (+28%); however, premium growth was also solid in most of the other major non-life markets. Notable exceptions were Mexico, where a two-year programme by the state-owned oil com-pany is only up for renewal in 2011, and Russia, which posted weak results across all lines. Premiums declined in the Central and Eastern European region due to the fragile economic recovery. However, the decline in premium volume may understate demand for insurance in the region, since business in the EU countries is increasingly being written by carriers outside the various countries under the Freedom to Provide Service (FPS) agreement.

Premium growth is once again strong in the emerging markets.

Life premiums rose 13% to USD 364bn and are nearly back to the ten- year average growth rate...

… while non-life premiums increased by 8.5% to USD 286bn; growth remained below the ten-year average.

Emerging markets: China leads growth

20



risingpenetration

fallingpenetration

Rea

l pre

miu

m g

row

th 2

010

Real GDP growth 2010

100%

80%

60%

40%

20%

0%

–20%

2%0%–2%–4% 4% 6% 8% 10% 12%

Non-life insurance Life insurance GDP


Insurance density and penetrationIn 2010, an average of USD 110 per capita was spent on insurance in the emerging markets; of this amount, the majority was spent on life insurance (USD 61) versus USD 49 for non-life insurance. Growth of insurance premiums continued to outpace general economic growth; hence, insurance penetration (ie premiums as a % of GDP) continued to increase, rising to 3% in 2010. Due to a phase of solid economic growth in the emerging markets since 2000, insurance penetration has increased by 50%, underlining the growing importance of the insurance sector in the emerging market economies. Even by country, premiums grew faster than GDP in the majority of life and non-life markets (see Figure 16).

Figure 16Life and non-life premium growth versus GDP growth in the emerging markets

Average premiums were USD 110 per capita, or 3% of GDP.

21


0 500 1 000 1 500 2 000 2 500

Premiums per capita in USD

BahamasSlovenia

United Arab EmiratesSouth Africa

MacaoCzech Republic

Trinidad and TobagoQatar

BahrainChile

SlovakiaPoland

MalaysiaNamibiaHungary

CroatiaBrazil

RussiaVenezuela

PanamaOman

LebanonArgentina

KuwaitUruguayJamaicaThailand

LithuaniaSaudi Arabia

MexicoPR China

Costa RicaBulgaria

ColombiaRomania

TurkeyAverage

SerbiaJordan

El SalvadorEcuador

MoroccoPeru

TunisiaDominican Republic

IranIndia

KazakhstanUkraine

IndonesiaSri Lanka

AlgeriaPhilippines

KenyaEgypt

VietnamNigeria

PakistanBangladesh

Life premiums per capitaNon-life premiums per capita Premiums as a % of GDP

Premiums as a % of GDP


Figure 17Emerging markets: insurance densityand penetration

22



South & East Asia: favourable outlook

Life insuranceLife insurance premiums rose strongly by 18% in 2010 to USD 238bn (2009: +12%) across South & East Asian markets. Premium growth in China soared by 26% (2009: +13%), reflecting strong demand for both traditional and investment-linked products. However, the introduction of tighter bancassurance regulations slowed sales through bank branches towards the end of the year. In India, premium growth slowed to 4.2% in 2010 (2009: +7.9%). The regulatory landscape has changed with the IRDA announcing a series of actions and new regulations related to unit-linked insurance plans. These measures have put pressure on the underwriting margins of life insurers and slowed the growth of new business. Meanwhile, other Southeast Asian markets reported robust premium expansion between of 7% and 18%, alongside improving consumer sentiments, which have bolstered sales of investment-type products. Profita-bility is likely to remain stable, since interest rates have remained low.

The outlook for 2011 remains positive, but varies across the markets. Stringent regula-tion is the key challenge. In China, the implementation of firm regulations on banc-assurance could drag on premium growth; but, rising interest rates bode favourably for insurers’ investment results. Indian insurers are likely to see further improvements in investment yields alongside rising consumer demand. Meanwhile, regulations recently disclosed regarding unit-linked insurance products are expected to prompt insurers to shift from these products to traditional protection and endowment products. Unit-linked products will nevertheless remain a key product of insurers in the longer term considering their wide popularity and increased transparency in India. In other Southeast Asian markets, the positive economic outlook will continue to underpin growth, but regulatory changes mainly in the form of tighter solvency standards and higher consumer protection standards will demand life insurers’ attention.

Non-life insuranceNon-life premiums in emerging Asia rose sharply by 22% in 2010 to USD 98bn (2009: +14%). In China, a full pipeline of infrastructure projets, as well as growth in policy-driven agricultural and liability insurance, have contributed to robust premium growth of 28% (2009: +19%). In India, premiums grew solidly by 9.8% (2009: +5.4%) mainly due to the strong performance of the motor and property businesses as well as mono-line health insurers, which reported very strong growth in their portfolios. Most other Southeast Asian markets also reported solid premium growth over the year. Underwriting losses have led regulators in some markets to review current tariff systems. Profitability is estimated to have improved in the absence of major losses. While China was hit by a strong earthquake in April and endured a wave of floods in the middle of the year, insurance losses were limited due to the still low insurance penetration.

The industry outlook in most markets is expected to improve further in 2011. A cyclical upswing in China’s motor premiums will underpin further improvement in this line of busi-ness, while the termination of subsidies for small cars and the introduction of vehicle registration quotas in Beijing will have a negative impact on motor insurance sales. In India, more foreign insurers are expected to enter the market in collaboration with local partners. Several banks are also planning to enter the non-life sector in order to diversify their portfolios and broaden their product offerings. This will further fragment the market and increase competitive pressure. Meanwhile, the 2011 earthquakes in Japan and New Zealand could prompt corporations to review and improve their insur-ance protection against business interruption. The major challenges are continuous price pressure and rising inflation in some countries. Additionally, regulators are consider-ing raising solvency standards, which could impact the capital adequacy of smaller domestic insurers.

Strong life premium growth has been observed in most markets in 2010.

Rising interest rates bode favourably for insurers’ investment results in 2011.

The robust economic outlook supports insurance growth.

Premiums in 2010 in South and East Asia World USD bn market share Life 238 9.5%Non-life 98 5.4%

Real premium growth


0%

5%

10%

15%

20%

Life Non-life

23


Latin America and the Caribbean: stronger growth

Life insurance Life insurance premiums in Latin America and the Caribbean accelerated by 12% to USD 55bn in 2010 (2009: +7.4%). Premium volume in USD terms grew at almost 30% as many currencies in the region appreciated during 2010. Since premium growth in the region far exceeded the global life insurance industry’s overall growth, the region’s share of the world market increased in 2010 (+2.2%) versus +1.8% in 2009. The main contributor to overall life growth was Brazil, where premiums rose 13%. Chile, Argentina and Peru also contributed significantly; premium growth for these three countries combined exceeded 20%. Among the larger life markets in the region, Colombia was the only country where premiums fell (–0.7%); the decline was due to shrinking pension-related lines.

Going forward, life premium growth is expected to continue to grow at double-digit rates on the back of a buoyant economic environment. In addition, insurers are successfully extending their product offers to individuals in the medium and lower income groups. The higher penetration will, however, increasingly expose life insur-ers to catastrophic events, such as floods or pandemics. One of the key challenges is that rising inflation is likely to undermine demand for savings products.

Non-life insuranceIn 2010, non-life premiums in the region grew by 5.5% to USD 73bn (2009: +2.9%). The rebounding economy supported premium growth across the region and, as in life, Brazil was the largest contributor to regional non-life premium growth. This was driven by the double-digit growth of motor, the biggest non-life line in Brazil. Extended war-ranty in property and group accident also contributed to the strong expansion in Brazil, while rural and special risk lines underperformed. Argentina was another major contri-butor to regional growth. Chile, Colombia and Peru also exceeded the regional average, but their contribution to regional growth was limited due to the relative size of their insurance markets. In Mexico, non-life premiums decreased by 4.8% due to the absence of premiums from the state-owned oil company in 2010¹⁰. According to the Mexican insurance supervisor, premium volume in 2010 would also have grown if adjusted for the national oil company. The non-life insurance market of Venezuela, which was the third biggest in the region in 2009, fell to fourth place as premiums contracted considerably to USD 7.9bn (2009: USD 12.3bn) due to the devaluation of the local currency.

The massive investments expected in infrastructure and energy are likely to drive growth in the region in the short- and medium term. The increase in sums insured and exposure will, however, be partially compensated by competitive pricing. Insurers could be tempted to underprice inflation, which would have an impact on the results of long-tail business such as liability. In 2011 and 2012, insurers in Brazil and Argentina will probably also face higher prices and less capacity from reinsurers due to stricter reinsurance regulations.

¹⁰ The multi-line, multi-year policy of the state-owned oil company Pemex was placed in 2009 and will only be renewed in 2011.

Growth in life premiums accelerated to 12% in 2010 due to strong growth in Brazil, Chile and Argentina.

The boom should continue, but rising inflation is a challenge.

The rebounding economy supports non-life growth.

Premiums in 2010 in Latin America and the Caribbean World USD bn market shareLife 55 2.2%Non-life 73 4%

Real premium growth


0%

2%

4%

6%

8%

10%

12%

Life Non-life

24



Central and Eastern Europe: back to growth in life, while non-life continues to contract

Life insuranceIn 2010, premium growth in the CEE region was once again positive at 5.7% (2009: –19%), with premiums rising to USD 20bn. Premium volume grew strongest in Russia (+34%), the Czech Republic (+16%) and the Baltic states (+25%), where premiums rebounded after declining by nearly 30% for two years due to the deep economic crisis. In Poland, the largest life market in the region, premiums grew by 1.9%, driven by strong sales of unit-linked products. The strong performance of the Czech Republic (+16%) was due to buoyant sales of single premium products, while the development of regular premium products was flat. A similar trend can be seen in Hungary (+3.4%), where single premium business (unit-linked as well as endow-ment products) compensated for falling premium volumes for all other product types. Premiums continued to decline in Romania, where the economy has yet to recover.

While the life sector continues its recovery, a quick return to pre-crisis growth is unlikely, since the economic situation will improve only gradually given the severe recession in 2009 and the high levels of household debt in many countries. Further-more, recent growth has been driven primarily by pure savings products with short durations, while sales of risk products continued to be sluggish or fell. One of the main challenges going forward will therefore be supporting sales of more risk-based products. In the European Union countries, the introduction of Solvency II is one of the key challenges.

Non-life insuranceNon-life insurance premiums fell 2.1% in Central and Eastern Europe to USD 68bn in 2010 (2009: –6.9%). The decline was broadly based and Poland was the only major country to report growth (+3.4%). However, these figures are likely to underestimate the demand for insurance in the region’s EU member states. An increasing share of the business sold in these countries is no longer captured in the national statistics, as it is written under the Freedom to Provide Service (FPS) agreement. Still, the weak perform-ance is not surprising, given the sluggish improvement of the general economic situation in most countries, with investment activity and private consumption still mostly weak or declining. This is also reflected in the at growth by line of business. In Russia, the largest non-life insurance market in the region, premiums declined by 1.1% due to weak property, motor own damage and (non-risk bearing) compulsory medical business, while voluntary accident & health expanded at double-digit rates. Growth in Poland was driven mainly by property, while motor own damage continued to decline and motor third party liability grew slightly. Premiums continued to decline in the other major markets in the region, such as Hungary (–6.8%), the Czech Republic (–5.1%) and Romania (–13%). Premiums in the Baltic States (–5.8%) continued to decline as well, but this can still be considered an improvement compared to the previous year (–34%). Central and Eastern Europe experienced a number of severe natural hazard events – eg the heat waves and wildfires in Russia and floods, particularly in Poland, which resulted in large insured losses and drove up loss ratios in property.

For as long as the general economic environment is not expected to return to its pre-crisis state, it will continue to improve. Domestic demand should become more broadly based with private consumption and investments in the region also expected to grow, supporting growth of related business lines, such as engineering or motor insurance. In some markets, most notably Poland, there are signs of rate improve-ments in motor, but in the other new EU member countries, competition in the seg-ment is likely to remain fierce. While most countries in the region are not exposed to major natural hazards, such as earthquakes and wind storms, the recent flood events have nevertheless raised awareness about natural hazards and how insurance can counter their negative financial consequences.

Premium growth resumed, but was mainly due to the performance of the savings business.

Growth continued, but was below pre-crisis levels.

Non-life premiums continued to contract in 2010.

Premiums in 2010 in Central and Eastern Europe World USD bn market shareLife 20 0.8%Non-life 68 3.7%

Real premium growth


–4%

–2%

0%

2%

4%

6%

8%

10%

Life Life excl. Russia Non-life

25


The Middle East, Central Asia & Turkey¹¹: recovery in 2010, uncertain outlook amid political uncertainties

Life insuranceThe life insurance market in the region continued to witness strong growth with premiums increasing by 12% to USD 4bn in 2010; the annualised growth for the period 2000–09 was 9.4%. Turkey, which accounted for 36% of the region’s life premiums, registered premium growth of 11%, well above the average annualised growth of 3.6% from 2000 to 2009. In the oil-exporting countries of Saudi Arabia and UAE, the rise in popularity of takaful insurance spurred the growth of life premiums, which grew by 21% and 4.1% respectively in 2010.

In the medium and long term, the outlook for life insurance is generally positive in the region. Life insurance penetration is still very low. Islamic insurance and efforts to increase insurance awareness should play an important role in the future. It is expected that pension reforms in the regional markets, the restructuring of existing schemes and the reduced role of governments in pension systems will boost demand for long-term savings products. Changing demographics – driven by the growing numbers of indivi-duals of working age – along with strong economic growth prospects will provide strong support for the life insurance market.

Non-life insuranceThe non-life insurance markets in the Middle East, Central Asia and Turkey recovered strongly with premiums growing by 7.3% to USD 27bn in 2010. This was primarily driven by improving macroeconomic conditions; the aggregate real GDP of the regional markets grew by 4.7% in 2010 versus 3.4% in 2009.

Turkey, the largest non-life insurance market in the Middle East region, accounted for approximately 28% of the total direct premiums in 2010. After registering a decline in real premiums of 3.8% and 2.1% in 2008 and 2009 respectively – on the back of weak external demand and competitive pricing – the non-life insurance industry in Turkey rebounded in 2010, registering a growth rate of 3.6%. Non-life premium growth was strong in the oil-exporting countries of Saudi Arabia (+14%), Jordan (+7.7%) and the UAE (+7.2%). The health segment is increasingly gaining significance in the region as the governments introduce laws requiring compulsory health coverage. Strong infrastructural development and expansion in hydrocarbon facilities, particularly in the oil-exporting countries, have helped stimulate demand for commercial insurance lines such as property and engineering. The political turmoil in the Middle East is creating uncertainty for the economic growth outlook of the region in the short term. Sectors such as tourism, manufacturing, construction, trade and banking are particularly affected. The negative impact will most likely affect the growth prospects of non-life insurance in the markets of Egypt, Libya, Syria and Yemen. However, it is unlikely that the situation will severely dent the long-term fundamentals for economic and insurance growth in the region. Premium growth will also be supported by personal lines, such as motor and health, which will become compulsory.

¹¹ The figures in this section exclude Israel, which belongs to the group of industrialised countries.

In 2010, life premiums grew strongly in Turkey and oil-exporting countries.

Increasing insurance awareness and popularity of Islamic insurance will support growth in life premiums.

Non-life premiums recovered strongly on the back of improving macroeconomic conditions.

Compulsory insurance lines and infrastructural developments drove premium growth in the oil-exporting countries.

The growth outlook in 2011 will be affected by political uncertainties; long-term growth fun-damentals remain intact.

Premiums in 2010 in emerging Middle East countries, Central Asia & Turkey10 World USD bn market shareLife 4 0.2%Non-life 27 1.5%

Real premium growth


0%

2%

4%

6%

8%

10%

12%

Life Non-life

26



Africa: life premiums decline, non-life grows

Life insurance Life insurance premiums in Africa fell by 2.4% to USD 47bn in 2010, after having increased by 1.7% in 2009. South Africa is the dominant market, accounting for more than 90% of regional life premium volume. Premium income in South Africa fell by 2.1% in 2010 (2009: +1.7%). Sales of compulsory annuities were adversely affected by lower interest rates, which resulted in lower annuity rates. However, there was solid growth in the large private pensions market and in investment products. Premiums in Egypt, the third largest market, although still relatively small compared to South Africa, shrank by 18%. Recent data is unavailable for the other countries in the region. A number of takaful companies have set up operations in Egypt as well as in other African countries. This is likely to increase the appeal of life insurance to the continent's significant Muslim population.

Life insurance in the region is likely to experience growth in the medium term as the economic recovery gains momentum.

Non-life insuranceAccording to the limited information available, non-life premiums in Africa rose 4.1% to USD 19bn (2009: +3.8%). South Africa, which accounted for half of the regional non-life premium volume, grew by 4.2%. Non-life premium income continued to decline in Egypt (–2.6%), but increased in Namibia (+10%). Recent data is not available for other countries in the region.

Due to rising commodity prices, the African economies performed relatively well in the global economic crisis and the expansion should continue. The non-life insurance market should benefit accordingly.

The South African life industry was impacted by lower sales of annuities.

According to available information, growth increased in 2010.

Premiums in 2010 in Africa World USD bn market shareLife 47 1.9%Non-life 19 1.1%

Real premium growth


–4%

–2%

0%

2%

4%

6%

8%

Life Non-life

27


This study is based on the direct premium volume of insurance companies, regardless of whether they are privately or state owned. Premiums paid to state social insurers are not included.

The study examines non-life and life premium volume in 147 countries. The statistical appendix provides detailed information on the largest 88 countries, measured by total insurance premium volume.

The insurance data (and estimates where data was not yet available) contained in the study originates primarily from national supervisory authorities and, in some cases, from insurance associations. The macroeconomic data was sourced from the Interna-tional Financial Statistics of the International Monetary Fund (IMF), Oxford Economics, the Economist Intelligence Unit (EIU) and the Wiener Institut für internationale Wirt-schaftsvergleiche (WIIW).¹²

Figures for previous years are adjusted as new information becomes available. An update of sigma's world insurance tables will be posted online in December 2011 (at www.swissre.com/sigma). Compared to the December 2010 update, world premi-ums for 2009 have been revised by 0.3% or USD 8.1bn in life insurance and by –0.01% or USD –0.2bn in non-life insurance. Compared to the last edition (sigma No 2/2010), the revision was –1.5% for life premiums and 0.4% for non-life premiums.

This report is based on information concerning the premiums written for direct business by all registered insurers. This means:1. Direct insurance premiums, including commissions and other charges,

are considered prior to cession to a reinsurance company.2. Domestic insurers – regardless of their ownership – and domestic branches

of foreign insurers are regarded as domestically domiciled business units. By contrast, business undertaken by the foreign branches of domestic insurers is not regarded as domestic business.

3. Business that has been written in the domestic market includes premiums for cover of domestic risks as well as those covering foreign risks, as long as they are written by domestic insurers (cross-border business).

Life and non-life business areas are categorised in this study according to standard EU and OECD conventions. This means that health insurance is counted as part of non-life insurance, even if these lines are classified differently in the individual countries.

Unless stated otherwise, all premium growth rates in the text indicate changes in real terms. These real growth rates are calculated using premiums in local currencies and adjusted for inflation using the consumer price index for each country. In addition to the real growth rate, the statistical appendix provides the nominal change in growth for each country. Regional aggregated growth rates were calculated using the previous year's premium volumes, which were converted into USD at market exchange rates. The same procedure was used for the economic aggregates of Table X, for which the previous year's nominal GDPs in USD were used as weights.

¹² It should be noted that both the insurance and macroeconomic data listed in this study may deviate from the 2008 and 2009 figures published in earlier World Insurance sigmas. These discrepancies are due to statistical adjustments or the use of better sources.

Basis: direct premium income in 147 countries

Data sources

Data revisions

Definition of premium income

Health insurance allocated to non-life business

Growth rates in local currency are adjusted for inflation.

Methodology and data

28


Using the average exchange rate for the financial year, premium volumes are converted into USD to facilitate comparisons between the different markets and regions.¹³ Where no premium data is available (indicated by “na” for the local currency value), the premi-um income in USD is estimated based on the assumption that the ratio of insurance premiums to GDP remained constant (ie constant insurance penetration). Regional growth rates are calculated using a weighted average of the real growth rates of the individual countries. The weighting is based on the relevant premiums of the previous year, in USD.

The statistical appendix contains additional calculations as well as the macroeconomic data used for currency conversions. Alongside real growth rates, the changes are also shown at current prices (nominal growth rates) in both the local currency and in USD.

Only premium income from domestic risks is used to calculate insurance penetration and density. Cross-border business is not included. This has a significant effect in Lux-embourg, Italy and Ireland.

The sigma editorial team would like to thank the supervisory authorities, associations and companies that helped with data compilation.

¹³ In Egypt, India, Iran, Japan, South Korea and Malaysia, the financial year is not the same as the calendar year. Precise details about the differences in dates are given in the notes to the statistical appendix.

The use of US dollar figures facilitates international comparisons.

Density and penetration do not include cross-border business.

Acknowledgement

Methodology and data

29


Statistical appendix

Premium data on countries and regions is now available electronically at the following prices:

Update 2000–2010 1995–2010 1980–2010 per package

Life insurance CHF 1500 CHF 2100 CHF 3750 CHF 500 USD 1760 USD 2470 USD 4410 USD 590 EUR 1220 EUR 1710 EUR 3050 EUR 410 Non-life insurance CHF 1500 CHF 2100 CHF 3750 CHF 500 USD 1760 USD 2470 USD 4410 USD 590 EUR 1220 EUR 1710 EUR 3050 EUR 410 Total premium volume (non-life and life) CHF 3000 CHF 4200 CHF 7500 CHF 1000 USD 3520 USD 4940 USD 8820 USD 1180 EUR 2440 EUR 3420 EUR 6100 EUR 820

Further information and order forms can be accessed under “Dataselling” at www.swissre.com/sigma/data_selling.html

Insurance figures for the period 2008–2010 are available free of charge on the sigma portal of the Swiss Re website at www.swissre.com/sigma

30


Legend for Tables I to X

1 Excluding cross-border business 2 Excludes industrialised countries in South and East Asia (Hong Kong, Singapore, South Korea,

and Taiwan) 3 Insurance penetration (premiums as a percentage of GDP) and density (premiums per capita) include

cross-border business 4 North America, Western Europe (excluding Turkey), Japan, Hong Kong, Singapore, South Korea, Taiwan

(counted as an emerging market in earlier editions), Oceania, Israel 5 Latin America, Central and Eastern Europe, South and East Asia, the Middle East (excluding Israel) and

Central Asia, Turkey, Africa 6 34 member countries 7 The US, Canada, the UK, Germany, France, Italy, Japan 8 The US, Canada, Mexico 9 Singapore, Malaysia, Thailand, Indonesia, the Philippines, Vietnam. The four remaining member

countries – Brunei, Cambodia, Laos and Myanmar – are not included. 10 Life insurance: premiums are supplemented by estimated premiums for group pension business,

which has not been included in the statistics for some regions since 2001. Non-life insurance includes state funds.

11 Life insurance: net premiums 12 Non-life insurance: gross premiums, including reinsurance premiums 13 Financial year 1 April 2010 – 31 March 2011 14 Financial year 21 March 2010 – 20 March 2011 15 Financial year 1 July 2009 – 30 June 2010 16 Non-life insurance: financial year 1 July 2009 – 30 June 2010 17 Inflation-adjusted premium growth rates in local currency, see Tables II, IV and VI 18 Including the remaining countries + provisional * estimated ** estimated USD value assuming constant insurance penetration

Statistical appendix

31


Table I: Premium volume by region and organisation in 2010

Premium volume Change (in %) Share of world Premiums1 Premiums1 per(in millions of USD) inflation-adjusted market (in %) in % of GDP capita (in USD)

Total business 2010 2009 2010 2009 2010 2010 2010America 1 409 530 1 357 559 0.7 –5.5 32.49 6.71 1 519.2

North America 1 281 664 1 249 254 0.0 –6.3 29.54 7.90 3 724.4Latin America and Caribbean 127 867 108 305 8.2 4.6 2.95 2.68 219.1

Europe 1 620 437 1 614 385 1.8 1.8 37.35 7.47 1 850.2Western Europe 1 532 631 1 529 489 1.9 2.6 35.32 8.44 2 890.3Central and Eastern Europe 87 806 84 896 –0.4 –10.1 2.02 2.62 272.5

Asia 1 161 118 1 014 419 7.2 4.7 26.76 6.16 281.5Japan and newly industrialised Asian economies 791 349 721 910 2.8 2.1 18.24 10.64 3 733.3South and East Asia2 336 448 262 699 18.8 12.3 7.75 3.66 93.9Middle East and Central Asia 33 321 29 810 10.1 5.0 0.77 1.51 105.0

Africa 66 719 57 453 –1.1 2.3 1.54 3.86 64.7Oceania 81 160 65 819 2.3 –11.5 1.87 5.82 2 283.1World3 4 338 964 4 109 635 2.7 –0.3 100.00 6.89 627.3

Industrialised countries4 3 688 758 3 568 693 1.4 –1.0 85.01 8.65 3 526.7Emerging markets5 650 206 540 943 11.0 4.6 14.99 2.99 110.1

OECD6 3 629 636 3 521 726 1.2 –1.3 83.65 8.14 2 847.8G77 2 843 371 2 776 919 0.7 –1.4 65.53 8.76 3 775.2Euroland 1 069 855 1 076 059 3.1 6.8 24.66 8.15 3 005.2EU, 27 countries 1 482 347 1 484 642 1.9 2.1 34.16 8.43 2 736.3NAFTA8 1 300 859 1 266 611 0.0 –6.1 29.98 7.54 2 859.7ASEAN9 57 169 46 658 9.3 4.9 1.32 2.97 103.6Eastern Europe excl. Russia 45 388 44 437 –0.3 –11.6 1.05 3.01 245.7SETE 7 6 775 7 303 –6.6 –5.8 0.16 1.99 134.4Baltic States 1 346 1 407 –0.5 –28.1 0.03 1.69 195.3Central Europe 35 058 33 521 1.6 –10.4 0.81 3.72 529.9

Life businessAmerica 612 349 589 076 0.4 –10.6 24.30 2.92 660.0

North America 557 802 546 829 –0.6 –11.8 22.13 3.44 1 620.9Latin America and Caribbean 54 547 42 247 12.2 7.4 2.16 1.14 93.5

Europe 965 661 953 418 2.8 3.4 38.32 4.48 1 110.6Western Europe 946 042 935 364 2.8 4.0 37.54 5.26 1 802.6Central and Eastern Europe 19 619 18 053 5.7 –19.2 0.78 0.58 60.9

Asia 855 370 752 541 6.3 4.2 33.94 4.55 208.1Japan and newly industrialised Asian economies 608 808 558 013 2.4 1.9 24.16 8.22 2 885.5South and East Asia2 238 441 187 267 17.5 11.5 9.46 2.59 66.5Middle East and Central Asia 8 121 7 261 11.5 5.4 0.32 0.37 25.6

Africa 47 244 40 581 –2.4 1.7 1.87 2.73 45.8Oceania 39 448 31 827 2.7 –23.7 1.57 2.83 1 109.7World3 2 520 072 2 367 442 3.2 –0.8 100.00 4.00 364.3


OECD6 2 082 426 2 014 516 1.4 –2.0 82.63 4.68 1 639.3G77 1 641 942 1 598 447 0.8 –2.0 65.15 5.13 2 211.5Euroland 636 006 630 240 4.7 11.7 25.24 4.76 1 755.6EU, 27 countries 914 072 905 919 2.8 3.4 36.27 5.27 1 709.1NAFTA8 566 747 554 518 –0.5 –11.5 22.49 3.29 1 245.9ASEAN9 35 693 28 688 10.7 3.6 1.42 1.98 69.1Eastern Europe excl. Russia 18 600 17 298 4.6 –19.1 0.74 1.23 100.7SETE 7 1 282 1 320 –1.3 –10.6 0.05 0.38 25.4Baltic States 357 305 21.6 –12.9 0.01 0.45 51.9Central Europe 16 924 15 661 4.7 –19.5 0.67 1.80 255.8

Non-life businessAmerica 797 181 768 482 0.9 –1.2 43.83 3.80 859.2

North America 723 861 702 425 0.5 –1.5 39.80 4.46 2 103.5Latin America and Caribbean 73 320 66 058 5.5 2.9 4.03 1.53 125.6

Europe 654 775 660 968 0.3 –0.4 36.00 2.99 739.6Western Europe 586 589 594 125 0.6 0.4 32.25 3.18 1 087.7Central and Eastern Europe 68 187 66 842 –2.1 –6.9 3.75 2.03 211.6

Asia 305 748 261 878 9.8 6.1 16.81 1.61 73.5Japan and newly industrialised Asian economies 182 541 163 897 4.2 2.8 10.04 2.42 847.8South and East Asia2 98 007 75 432 21.9 14.4 5.39 1.07 27.4Middle East and Central Asia 25 200 22 549 9.9 4.8 1.39 1.14 79.4

Africa 19 475 16 873 4.1 3.8 1.07 1.13 18.9Oceania 41 713 33 993 2.0 4.0 2.29 2.99 1 173.4World3 1 818 893 1 742 193 2.1 0.3 100.00 2.89 263.0


OECD6 1 547 209 1 507 210 0.9 –0.2 85.06 3.45 1 208.5G77 1 201 429 1 178 472 0.5 -0.5 66.05 3.63 1 563.7Euroland 433 850 445 819 0.9 0.6 23.85 3.39 1 249.6EU, 27 countries 568 275 578 723 0.5 0.2 31.24 3.17 1 027.2NAFTA8 734 112 712 093 0.4 –1.4 40.36 4.26 1 613.8ASEAN9 21 476 17 970 7.0 7.2 1.18 0.99 34.5Eastern Europe excl. Russia 26 788 27 139 –3.6 –5.9 1.47 1.77 145.0SETE 7 5 493 5 983 –7.9 –4.7 0.30 1.61 109.0Baltic States 988 1 103 –6.6 –31.4 0.05 1.24 143.4Central Europe 18 134 17 860 –1.1 –0.2 1.00 1.93 274.1

32


Table II: Total premium volume in local currency in 2010

Premium volume Change (in %) Change (in %)(in millions of local currency) nominal inflation-adjusted

Country Currency 2010 2009 2008 2010 2009 2010 2009North America United States10 USD 1 166 142 + 1 149 758 1 239 747 1.4 –7.3 –0.2 –7.0

Canada11 CAD 118 999 * 113 578 111 359 4.8 2.0 2.9 1.7Total 0.0 –6.3

Latin America Brazil BRL 112 812 * 97 367 86 939 15.9 12.0 10.3 6.8and Caribbean Mexico MXN 242 558 + 234 549 206 704 3.4 13.5 –0.7 7.8

Argentina ARS 39 399 + 29 676 26 668 32.8 11.3 20.2 4.7Chile CLP 4 228 292 3 457 953 3 638 056 22.3 –5.0 18.7 –9.4Venezuela VEB 34 860 * 27 550 22 334 26.5 23.4 –1.3 –2.9Colombia COP 12 261 648 + 11 436 693 10 470 809 7.2 9.2 4.8 4.8Peru PEN 6 552 5 190 4 331 26.2 19.8 24.4 16.4Ecuador USD 1 108 943 884 17.5 6.6 13.5 1.4Panama PAB 919 847 774 8.5 9.5 4.8 6.9Trinidad and Tobago TTD na. na. 5 156 + na. na. na. na.Uruguay UYU na. 12 693 10 727 + na. 18.3 na. 10.5Bahamas BSD na. na. na. na. na. na. na.Dominican Republic DOP na. 23 194 22 010 na. 5.4 na. 3.9Costa Rica CRC na. 339 680 336 029 * na. 1.1 na. –6.3Jamaica JMD na. 43 617 + 41 612 na. 4.8 na. –4.3El Salvador SVC na. 540 + 439 na. 23.0 na. 21.7

Total 8.2 4.6Europe United Kingdom GBP 200 530 * 199 450 213 529 0.5 –6.6 –2.7 –8.6

France EUR 211 235 * 203 824 187 375 3.6 8.8 2.1 8.7Germany EUR 180 867 * 172 177 163 801 5.0 5.1 3.9 4.8Italy EUR 131 491 * 121 529 95 655 8.2 27.0 6.6 26.1Netherlands EUR 73 199 * 74 200 77 861 –1.3 –4.7 –2.6 –5.8Spain EUR 57 380 * 59 255 59 410 –3.2 –0.3 –4.9 0.0Switzerland CHF 54 339 + 53 694 53 135 1.2 1.1 0.5 1.5Ireland EUR 36 127 * 34 736 35 320 4.0 –1.7 5.7 0.1Russia RUB 1 041 094 977 526 951 974 6.5 2.7 –0.6 –8.2Belgium EUR 31 000 * 29 100 30 686 6.5 –5.2 4.2 –5.1Sweden SEK 275 167 253 160 243 297 8.7 4.1 7.3 4.4Luxembourg EUR 24 899 + 19 993 13 118 24.5 52.4 21.1 52.4Denmark DKK 165 624 + 160 994 165 219 2.9 –2.6 0.6 –3.8Finland EUR 16 913 * 16 413 16 008 3.1 2.5 1.8 2.5Austria EUR 16 767 * 16 421 16 215 2.1 1.3 0.3 0.8Portugal EUR 16 426 * 13 891 * 15 437 * 18.3 –10.0 16.6 –9.3Norway NOK 119 628 113 359 115 451 5.5 –1.8 3.1 –3.9Poland PLN 53 593 + 50 834 58 792 5.4 –13.5 2.7 –16.9Turkey TRY 13 816 12 145 11 523 13.8 5.4 4.8 –0.8Liechtenstein CHF 9 373 + 8 933 5 889 4.9 51.7 4.2 52.4Czech Republic CZK 151 135 + 144 134 139 471 4.9 3.3 3.6 2.7Greece EUR na. 4 704 4 751 * na. –1.0 na. –2.1Hungary HUF 831 454 + 807 236 863 719 3.0 –6.5 –1.6 –10.1Slovenia EUR 2 093 + 2 073 2 019 1.0 2.7 –1.1 1.8Romania RON 8 364 + 8 870 8 936 –5.7 –0.7 –11.1 –6.0Slovakia EUR 1 967 + 2 005 2 101 –1.9 –4.6 –2.6 –5.4Ukraine UAH 19 545 * 20 442 24 009 –4.4 –14.9 –12.6 –26.5Croatia HRK 9 246 9 411 9 686 –1.8 –2.8 –2.8 –5.1Malta EUR na. 1 040 864 na. 20.4 na. 18.2Bulgaria BGN na. * 1 662 1 811 na. –8.2 na. –10.4Cyprus EUR 815 * 778 742 4.8 4.8 2.2 4.6Serbia RSD 56 521 53 535 52 187 5.6 2.6 –1.1 –5.5Lithuania LTL 1 552 + 1 314 1 876 18.1 –29.9 16.7 –32.8

Total 1.8 1.8Asia Japan13 JPY 48 376 460 + 48 484 704 48 542 064 –0.2 –0.1 0.1 1.5

PR China CNY 1 452 797 + 1 113 730 978 396 30.4 13.8 26.2 14.6South Korea13 KRW 132 780 312 + 119 113 680 110 047 904 11.5 8.2 7.8 5.6India13 INR 3 579 969 * 3 046 764 2 553 558 17.5 19.3 4.9 7.6Taiwan TWD 2 418 655 2 108 418 2 026 584 14.7 4.0 13.6 5.0Hong Kong HKD 199 862 + 179 035 183 249 11.6 –2.3 9.0 –2.8Singapore SGD 23 640 + 21 020 22 211 12.5 –5.4 9.4 –5.9Thailand THB 431 041 + 368 574 329 675 16.9 11.8 13.2 12.8Malaysia13 MYR 37 322 * 34 203 31 038 9.1 10.2 7.0 10.2Israel ILS na. 39 607 37 436 na. 5.8 na. 2.4Indonesia IDR 96 868 928 * 86 243 632 73 762 488 12.3 16.9 6.8 11.6United Arab Emirates12 AED 21 575 20 039 18 274 7.7 9.7 6.7 8.0Iran14 IRR na. 46 459 700 40 560 988 na. 14.5 na. 1.7Saudi Arabia SAR 17 558 * 14 610 10 919 20.2 33.8 14.1 27.4Philippines PHP 96 296 * 86 226 86 208 11.7 0.0 7.6 –3.1Vietnam VND 30 843 700 + 25 493 240 21 186 870 21.0 20.3 11.1 12.4Pakistan PKR 96 300 * 85 531 76 544 12.6 11.7 –1.1 –1.7Lebanon LBP na. 1 435 743 1 327 667 na. 8.1 na. 6.9Bangladesh BDT na. na. 51 549 na. na. na. na.Kazakhstan KZT 139 964 113 290 133 488 23.5 –15.1 15.4 –20.9Qatar QAR na. 2 814 3 080 na. –8.7 na. –4.0Oman OMR na. 238 + 208 na. 14.2 na. 9.9Kuwait KWD na. 170 180 na. –6.0 na. –9.6Sri Lanka LKR na. na. na. na. na. na. na.Bahrain BHD na. 201 187 na. 7.5 na. 4.5Jordan JOD 410 * 365 333 12.2 9.6 6.8 10.4Macao MOP na. na. 3 405 na. na. na. na.

Total 7.2 4.7Africa South Africa11 ZAR 389 885 * 377 660 345 920 3.2 9.2 –1.0 1.9

Morocco MAD na. 20 808 19 747 na. 5.4 na. 4.3Egypt15 EGP 8 738 8 630 7 683 1.2 12.3 –9.4 –3.4Nigeria NGN na. na. na. na. na. na. na.Algeria DZD na. 77 339 67 884 na. 13.9 na. 7.7Kenya KES na. 64 472 55 202 na. 16.8 na. 6.9Namibia NAD 6 491 6 186 5 447 4.9 13.6 0.2 4.4Tunisia TND na. 1 023 + 962 na. 6.3 na. 2.4

Total –1.1 2.3Oceania Australia16 AUD 79 074 75 057 84 869 5.4 –11.6 2.4 –13.1

New Zealand16 NZD 11 554 + 11 150 10 443 3.6 6.8 1.3 4.6

Total 2.3 –11.5World 2.7 –0.3

33


Table III: Total premium volume in USD in 2010

Premium volume Change (in %) 2010 Share of world(in millions of USD) nominal inflation- market

Ranking Country 2010 2009 (in USD) adjusted17 2010 (in %)North America 1 United States10 1 166 142 + 1 149 758 1.42 –0.22 26.88

8 Canada11 115 521 * 99 496 16.11 2.94 2.66Total 1 281 664 1 249 254 2.59 0.03 29.54

Latin America and Caribbean

15 Brazil 64 093 * 48 742 31.49 10.31 1.4829 Mexico 19 196 + 17 357 10.60 –0.71 0.4436 Argentina 10 112 + 7 999 26.42 20.19 0.2340 Chile 8 287 6 179 34.11 18.67 0.1941 Venezuela 8 179 * 12 832 –36.26 –1.28 0.1943 Colombia 6 458 + 5 278 22.36 4.85 0.1554 Peru 2 320 1 724 34.59 24.37 0.0564 Ecuador 1 108 943 17.51 13.48 0.0370 Panama 919 847 8.46 4.80 0.0273 Trinidad and Tobago 833 ** 706 ** 17.93 na. 0.0276 Uruguay 733 ** 562 30.39 na. 0.0277 Bahamas 730 ** 722 ** 1.09 na. 0.0280 Dominican Republic 710 ** 644 10.27 na. 0.0281 Costa Rica 709 ** 593 19.62 na. 0.0286 Jamaica 566 ** 496 + 14.04 na. 0.0187 El Salvador 552 ** 540 + 2.14 na. 0.01

Other countries 2 363 2 141 0.05Total 127 867 108 305 18.06 8.19 2.95

Europe 3 United Kingdom 310 022 * 312 165 –0.69 –2.66 7.154 France 280 082 * 284 044 –1.39 2.07 6.465 Germany 239 817 * 239 941 –0.05 3.86 5.537 Italy 174 347 * 169 360 2.94 6.56 4.02

10 Netherlands 97 057 * 103 403 –6.14 –2.59 2.2413 Spain 76 082 * 82 576 –7.86 –4.88 1.7517 Switzerland 52 118 + 49 419 5.46 0.51 1.2018 Ireland 47 901 * 48 407 –1.04 5.67 1.1019 Russia 41 644 39 576 5.22 –0.56 0.9620 Belgium 41 104 * 40 553 1.36 4.25 0.9521 Sweden 38 218 33 053 15.63 7.33 0.8822 Luxembourg 33 011 + 27 886 18.38 21.15 0.7623 Denmark 29 449 + 30 031 –1.94 0.57 0.6825 Finland 22 426 * 22 872 –1.95 1.81 0.5226 Austria 22 232 * 22 884 –2.85 0.28 0.5127 Portugal 21 780 * 19 358 * 12.51 16.63 0.5028 Norway 19 780 18 025 9.74 3.06 0.4630 Poland 17 763 + 16 286 9.07 2.65 0.4137 Turkey 9 220 7 853 17.42 4.78 0.2138 Liechtenstein 8 990 + 8 222 9.35 4.21 0.2142 Czech Republic 7 914 + 7 561 4.66 3.61 0.1844 Greece 6 088 ** 6 556 ** –7.13 na. 0.1448 Hungary 3 999 + 3 989 0.23 –1.62 0.0949 Slovenia 2 775 + 2 891 –4.01 –1.09 0.0650 Romania 2 632 + 2 909 –9.51 –11.12 0.0651 Slovakia 2 608 + 2 794 –6.65 –2.57 0.0653 Ukraine 2 463 * 2 624 –6.13 –12.60 0.0656 Croatia 1 682 1 781 –5.55 –2.83 0.0459 Malta 1 465 ** 1 450 1.04 na. 0.0362 Bulgaria 1 150 * 1 182 –2.69 na. 0.0365 Cyprus 1 081 * 1 084 –0.27 2.20 0.0278 Serbia 727 792 –8.18 –1.14 0.0284 Lithuania 595 + 529 12.53 16.67 0.01

Other countries 2 215 2 331 0.05Total 1 620 437 1 614 385 0.37 1.81 37.35

Asia 2 Japan13 557 439 + 522 155 6.76 0.09 12.856 PR China 214 626 + 163 047 31.63 26.24 4.959 South Korea13 114 422 + 98 425 16.25 7.85 2.64

11 India13 78 373 * 64 266 21.95 4.91 1.8112 Taiwan 76 425 63 782 19.82 13.62 1.7624 Hong Kong 25 725 + 23 096 11.38 9.02 0.5931 Singapore 17 338 + 14 451 19.97 9.38 0.4032 Thailand 13 598 + 10 742 26.59 13.24 0.3133 Malaysia13 11 779 * 9 889 19.10 6.97 0.2734 Israel 11 175 ** 10 072 10.95 na. 0.2635 Indonesia 10 662 * 8 271 28.91 6.84 0.2545 United Arab Emirates12 5 875 ** 5 456 7.67 6.71 0.1446 Iran14 5 087 ** 4 710 8.00 na. 0.1247 Saudi Arabia 4 682 * 3 896 20.18 14.13 0.1155 Philippines 2 134 * 1 810 17.94 7.59 0.0557 Vietnam 1 657 + 1 494 10.93 11.14 0.0463 Pakistan 1 130 * 1 047 7.99 –1.13 0.0366 Lebanon 1 074 ** 952 12.81 na. 0.0267 Bangladesh 957 ** 841 ** 13.76 na. 0.0268 Kazakhstan 950 768 23.66 15.35 0.0269 Qatar 933 ** 773 ** 20.72 na. 0.0275 Oman 758 ** 619 + 22.49 na. 0.0279 Kuwait 719 ** 589 21.92 na. 0.0282 Sri Lanka 699 ** 609 ** 14.80 na. 0.0283 Bahrain 606 ** 533 13.69 na. 0.0185 Jordan 577 * 514 12.15 6.79 0.0188 Macao 514 ** 416 ** 23.45 na. 0.01

Other countries 1 204 1 193 0.03Total 1 161 118 1 014 419 14.46 7.16 26.76

Africa 16 South Africa11 53 297 * 44 835 18.87 –0.99 1.2352 Morocco 2 592 ** 2 583 0.35 na. 0.0658 Egypt15 1 585 ** 1 565 1.30 –9.41 0.0460 Nigeria 1 196 ** 982 ** 21.79 na. 0.0361 Algeria 1 162 ** 1 065 9.14 na. 0.0371 Kenya 889 ** 833 6.70 na. 0.0272 Namibia 887 730 21.53 0.21 0.0274 Tunisia 776 ** 757 + 2.42 na. 0.02

Other countries 4 335 4 103 0.10Total 66 719 57 453 16.13 –1.11 1.54

Oceania 14 Australia16 72 572 58 624 23.79 2.44 1.6739 New Zealand16 8 336 + 6 968 19.64 1.29 0.19

Other countries 252 227 0.01Total 81 160 65 819 23.31 2.32 1.87

World 4 338 964 4 109 635 5.58 2.73 100.00

34


Table IV: Life insurance premium volume in local currency in 2010


Country Currency 2010 2009 2008 2010 2009 2010 2009North America United States10 USD 506 228 + 501 675 578 508 0.9 –13.3 –0.7 –13.0

Canada11 CAD 53 127 * 51 545 49 646 3.1 3.8 1.3 3.5Total –0.6 –11.8


Brazil BRL 58 518 49 465 41 225 18.3 20.0 12.6 14.4Mexico MXN 113 033 + 103 896 92 702 8.8 12.1 4.5 6.4Chile CLP 2 558 734 2 051 997 2 175 082 24.7 –5.7 21.0 –10.1Argentina ARS 7 584 + 5 289 6 250 43.4 –15.4 29.8 –20.4Colombia COP 3 674 255 + 3 617 176 3 598 083 1.6 0.5 –0.7 –3.5Peru PEN 3 159 2 054 1 832 53.8 12.1 51.5 8.9Venezuela VEF 1 396 * 1 103 799 26.5 38.2 –1.3 8.7Jamaica JMD na. 19 390 + 18 740 na. 3.5 na. –5.6Trinidad and Tobago TTD na. na. 1 521 + na. na. na. na.Panama PAB 233 239 222 –2.7 7.7 –6.0 5.2Bahamas BSD na. na. na. na. na. na. na.El Salvador USD na. 184 + 145 na. 27.0 na. 25.7Ecuador USD 181 157 141 15.6 11.4 11.6 6.0Uruguay UYU na. 2 719 2 191 + na. 24.1 na. 15.9Dominican Republic DOP na. 3 560 3 585 na. –0.7 na. –2.1Costa Rica CRC na. 31 207 28 255 * na. 10.4 na. 2.4

Total 12.2 7.4Europe United Kingdom GBP 138 312 * 138 468 154 421 –0.1 –10.3 –3.3 –12.2

France EUR 145 127 * 139 265 124 344 4.2 12.0 2.6 11.9Italy EUR 92 058 * 82 730 56 176 11.3 47.3 9.6 46.2Germany EUR 86 632 + 80 366 75 269 7.8 6.8 6.6 6.4Ireland EUR 29 636 * 28 230 28 500 5.0 –0.9 6.7 0.8Spain EUR 26 151 * 28 119 27 296 –7.0 3.0 –8.6 3.3Luxembourg EUR 22 561 + 17 905 10 814 26.0 65.6 22.6 65.6Sweden SEK 211 761 193 360 170 412 9.5 13.5 8.1 13.8Switzerland CHF 30 036 29 488 29 384 1.9 0.4 1.2 0.8Belgium EUR 20 650 * 18 905 19 802 9.2 –4.5 6.9 –4.5Netherlands EUR 18 932 * 21 514 26 388 –12.0 –18.5 –13.1 –19.4Denmark DKK 106 893 103 278 108 412 3.5 –4.7 1.2 –6.0Finland EUR 13 445 * 13 068 12 738 2.9 2.6 1.6 2.6Portugal EUR 12 217 * 10 023 * 11 070 * 21.9 –9.5 20.2 –8.7Norway NOK 67 352 62 789 66 012 7.3 –4.9 4.8 –6.9Austria EUR 7 557 * 7 416 7 362 1.9 0.7 0.1 0.2Poland PLN 27 083 + 25 875 34 859 4.7 –25.8 1.9 –28.6Liechtenstein CHF 8 859 + 8 450 5 563 4.8 51.9 4.1 52.6Czech Republic CZK 70 541 + 60 230 56 900 17.1 5.9 15.7 5.2Greece EUR na. 2 447 2 476 na. –1.2 na. –2.4Hungary HUF 444 435 + 410 603 459 020 8.2 –10.5 3.4 –14.0Turkey TRY 2 149 1 776 1 553 21.0 14.4 11.4 7.6Slovakia EUR 940 + 935 991 0.5 –5.6 –0.2 –6.4Russia RUB 22 534 15 713 19 319 43.4 –18.7 33.9 –27.2Slovenia EUR 656 + 630 643 4.1 –2.0 2.0 –2.8Romania RON 1 636 + 1 598 1 839 2.4 –13.1 –3.5 –17.7Cyprus EUR 376 * 353 341 6.4 3.5 3.8 3.3Malta EUR na. 324 215 na. 50.9 na. 48.2Croatia HRK 2 458 2 489 2 546 –1.2 –2.2 –2.3 –4.5Lithuania LTL 540 + 406 471 32.9 –13.7 31.3 –17.2Bulgaria BGN na. * 200 247 na. –19.3 na. –21.2Serbia RSD 8 646 7 314 5 922 18.2 23.5 10.7 13.7Ukraine UAH 810 * 827 1 096 –2.0 –24.5 –10.5 –34.8

Total 2.8 3.4Asia Japan13 JPY 38 267 120 + 38 398 848 38 193 572 –0.3 0.5 0.0 2.2

PR China CNY 967 951 + 745 744 665 812 29.8 12.0 25.6 12.8South Korea13 KRW 82 543 424 76 956 792 73 561 360 7.3 4.6 3.8 2.1India13 INR 3 097 489 * 2 654 504 2 217 913 16.7 19.7 4.2 7.9Taiwan TWD 2 022 912 1 730 110 1 663 409 16.9 4.0 15.8 4.9Hong Kong HKD 175 772 + 156 081 161 946 12.6 –3.6 10.0 –4.1Singapore SGD 13 884 + 12 238 14 319 13.4 –14.5 10.3 –15.0Thailand THB 263 509 + 219 817 187 142 19.9 17.5 16.1 18.5Malaysia13 MYR 25 064 * 22 683 20 142 10.5 12.6 8.3 12.6Indonesia IDR 65 427 408 * 57 291 952 47 194 600 14.2 21.4 8.6 15.8Israel ILS na. 19 785 18 802 na. 5.2 na. 1.8Philippines PHP 60 652 * 53 344 54 711 13.7 –2.5 9.5 –5.6United Arab Emirates12 AED 3 436 3 273 2 660 5.0 23.0 4.1 21.2Vietnam VND 13 791 863 + 11 849 280 10 307 620 16.4 15.0 6.9 7.4Bangladesh BDT na. na. 38 966 na. na. na. na.Pakistan PKR 49 989 * 41 943 34 862 19.2 20.3 4.7 5.9Macao MOP na. na. 2 548 na. na. na. na.Iran14 IRR na. 3 206 209 2 115 700 na. 51.5 na. 34.5Saudi Arabia SAR 1 276 * 1 003 594 27.3 68.9 20.9 60.8Sri Lanka LKR na. na. na. na. na. na. na.Lebanon LBP na. 350 343 437 784 na. –20.0 na. –20.9Bahrain BHD na. 57 52 na. 11.1 na. 8.1Kuwait KWD na. * 35 35 na. 1.2 na. –2.6Oman OMR na. 40 + 41 na. –1.8 na. –5.5Kazakhstan KZT 18 646 9 331 5 783 99.8 61.4 86.6 50.4Jordan JOD 36 * 35 36 3.1 –2.8 –1.8 –2.1Qatar QAR na. na. na. na. na. na. na.

Total 6.3 4.2Africa South Africa11 ZAR 315 919 * 309 560 284 120 2.1 9.0 –2.1 1.7

Morocco MAD na. 6 643 6 558 na. 1.3 na. 0.3Egypt15 EGP 3 568 3 880 3 514 –8.0 10.4 –17.7 –5.0Namibia NAD 4 462 4 430 4 024 0.7 10.1 –3.8 1.2Kenya KES na. 21 363 18 307 na. 16.7 na. 6.8Nigeria NGN na. na. na. na. na. na. na.Tunisia TND na. 135 + 110 na. 22.4 na. 17.9Algeria DZD na. 5 789 5 394 na. 7.3 na. 1.5

Total –2.4 1.7Oceania Australia16 AUD 41 453 39 292 51 078 5.5 –23.1 2.6 –24.4

New Zealand16 NZD 1 855 + 1 725 1 605 7.5 7.5 5.1 5.3

Total 2.7 –23.7World 3.2 –0.8

35


Table V: Life premium volume in USD in 2010

Premium volume Change (in %) 2010 Share of total Share of world(in millions of USD) nominal inflation- business market

Ranking Country 2010 2009 (in USD) adjusted 17 2010 (in %) 2010 (in %)North America 1 United States10 506 228 + 501 675 0.9 –0.7 43.4 20.09

11 Canada11 51 574 * 45 154 14.2 1.3 44.6 2.05Total 557 802 546 829 2.0 –0.6 43.5 22.13

Latin Americaand Caribbean

16 Brazil 33 246 24 762 34.3 12.6 51.9 1.3230 Mexico 8 945 + 7 688 16.3 4.5 46.6 0.3536 Chile 5 015 3 667 36.8 21.0 60.5 0.2040 Argentina 1 947 + 1 426 36.5 29.8 19.3 0.0841 Colombia 1 935 + 1 669 15.9 –0.7 30.0 0.0846 Peru 1 118 682 64.0 51.5 48.2 0.0463 Venezuela 328 * 514 –36.3 –1.3 4.0 0.0167 Jamaica 252 ** 221 + 14.0 na. 44.5 0.0168 Trinidad and Tobago 246 ** 208 ** 17.9 na. 29.5 0.0169 Panama 233 239 –2.7 –6.0 25.3 0.0171 Bahamas 188 ** 186 ** 1.1 na. 25.8 0.0172 El Salvador 188 ** 184 + 2.1 na. 34.1 0.0174 Ecuador 181 157 15.6 11.6 16.4 0.0176 Uruguay 157 ** 120 30.4 na. 21.4 0.0182 Dominican Republic 109 ** 99 10.3 na. 15.4 0.0086 Costa Rica 65 ** 54 19.6 na. 9.2 0.00

Other countries 394 369 16.7 0.02Total 54 547 42 247 29.1 12.2 42.7 2.16

Europe 3 United Kingdom 213 831 * 216 719 –1.3 –3.3 69.0 8.494 France 192 428 * 194 077 –0.8 2.6 68.7 7.646 Italy 122 063 * 115 290 5.9 9.6 70.0 4.847 Germany 114 868 + 111 996 2.6 6.6 47.9 4.56

13 Ireland 39 296 * 39 341 –0.1 6.7 82.0 1.5615 Spain 34 674 * 39 186 –11.5 –8.6 45.6 1.3817 Luxembourg 29 911 + 24 974 19.8 22.6 90.6 1.1918 Sweden 29 411 25 246 16.5 8.1 77.0 1.1719 Switzerland 28 809 27 140 6.1 1.2 55.3 1.1420 Belgium 27 380 * 26 345 3.9 6.9 66.6 1.0921 Netherlands 25 102 * 29 981 –16.3 –13.1 25.9 1.0023 Denmark 19 006 19 265 –1.3 1.2 64.5 0.7524 Finland 17 826 * 18 212 –2.1 1.6 79.5 0.7125 Portugal 16 199 * 13 968 * 16.0 20.2 74.4 0.6426 Norway 11 137 9 984 11.5 4.8 56.3 0.4428 Austria 10 020 * 10 335 –3.0 0.1 45.1 0.4029 Poland 8 977 + 8 290 8.3 1.9 50.5 0.3631 Liechtenstein 8 497 + 7 777 9.3 4.1 94.5 0.3437 Czech Republic 3 694 + 3 160 16.9 15.7 46.7 0.1538 Greece 3 166 ** 3 409 ** –7.1 na. 52.0 0.1339 Hungary 2 137 + 2 029 5.3 3.4 53.5 0.0842 Turkey 1 434 1 148 24.9 11.4 15.6 0.0645 Slovakia 1 247 + 1 304 –4.4 –0.2 47.8 0.0548 Russia 901 636 41.7 33.9 2.2 0.0449 Slovenia 870 + 879 –1.1 2.0 31.3 0.0356 Romania 515 + 524 –1.7 –3.5 19.6 0.0257 Cyprus 499 * 492 1.3 3.8 46.1 0.0258 Malta 456 ** 452 1.0 na. 31.2 0.0259 Croatia 447 471 –5.1 –2.3 26.6 0.0270 Lithuania 207 + 164 26.6 31.3 34.8 0.0178 Bulgaria 138 * 142 –2.7 na. 12.0 0.0181 Serbia 111 108 2.8 10.7 15.3 0.0084 Ukraine 102 * 106 –3.8 –10.5 4.1 0.00


Asia 2 Japan13 440 950 + 413 536 6.6 0.0 79.1 17.505 PR China 142 999 + 109 175 31.0 25.6 66.6 5.678 South Korea13 71 131 63 591 11.9 3.8 62.2 2.829 India13 67 810 * 55 992 21.1 4.2 86.5 2.69

10 Taiwan 63 920 52 338 22.1 15.8 83.6 2.5422 Hong Kong 22 624 + 20 135 12.4 10.0 87.9 0.9027 Singapore 10 183 + 8 414 21.0 10.3 58.7 0.4032 Thailand 8 313 + 6 407 29.8 16.1 61.1 0.3333 Malaysia13 7 910 * 6 559 20.6 8.3 67.2 0.3134 Indonesia 7 202 * 5 495 31.1 8.6 67.5 0.2935 Israel 5 582 ** 5 031 10.9 na. 50.0 0.2243 Philippines 1 344 * 1 120 20.1 9.5 63.0 0.0547 United Arab Emirates12 936 ** 891 5.0 4.1 15.9 0.0451 Vietnam 741 + 694 6.7 6.9 44.7 0.0352 Bangladesh 723 ** 636 ** 13.8 na. 75.6 0.0355 Pakistan 587 * 513 14.3 4.7 51.9 0.0260 Macao 384 ** 311 ** 23.5 na. 74.8 0.0261 Iran14 351 ** 325 8.0 na. 6.9 0.0162 Saudi Arabia 340 * 267 27.3 20.9 7.3 0.0165 Sri Lanka 279 ** 243 ** 14.8 na. 40.0 0.0166 Lebanon 262 ** 232 12.8 na. 24.4 0.0175 Bahrain 173 ** 152 13.7 na. 28.6 0.0177 Kuwait 149 * 122 21.9 na. 20.8 0.0179 Oman 129 ** 105 + 22.5 na. 17.0 0.0180 Kazakhstan 127 63 100.0 86.6 13.3 0.087 Jordan 51 * 49 3.1 –1.8 8.8 0.0088 Qatar na. ** na. ** na. na. 0 na.


Africa 12 South Africa11 43 186 * 36 750 17.5 –2.1 81.0 1.7150 Morocco 827 ** 825 0.3 na. 31.9 0.0353 Egypt15 647 ** 704 –8.0 –17.7 40.8 0.0354 Namibia 610 523 16.7 –3.8 68.7 0.0264 Kenya 295 ** 276 6.7 na. 33.1 0.0173 Nigeria 188 ** 154 ** 21.8 na. 15.7 0.0183 Tunisia 102 ** 100 + 2.4 na. 13.2 0.0085 Algeria 87 ** 80 9.1 na. 7.5 0.00

Other countries 1 302 1 169 30.0 0.05Total 47 244 40 581 16.4 –2.4 70.8 1.87

Oceania 15 Australia16 38 045 30 689 24.0 2.6 52.4 1.5144 New Zealand16 1 339 + 1 078 24.1 5.1 16.1 0.05


World 2 520 072 2 367 442 6.4 3.2 58.1 100.00

36


Table VI: Non–life insurance premium volume in local currency in 2010


Country Currency 2010 2009 2008 2010 2009 2010 2009North America United States10 USD 659 915 + 648 083 661 240 1.8 –2.0 0.2 –1.7

Canada11 CAD 65 872 + 62 033 61 713 6.2 0.5 4.3 0.2Total 0.5 –1.5


Brazil BRL 54 294 * 47 901 45 714 13.3 4.8 7.9 –0.1Mexico MXN 129 525 + 130 653 114 001 –0.9 14.6 –4.8 8.8Argentina ARS 31 815 + 24 387 20 418 30.5 19.4 18.1 12.4Venezuela VEF 33 464 * 26 447 21 535 26.5 22.8 –1.3 –3.4Colombia COP 8 587 393 + 7 819 518 6 872 726 9.8 13.8 7.4 9.2Chile CLP 1 669 558 1 405 956 1 462 974 18.7 –3.9 15.2 –8.4Peru PEN 3 393 3 137 2 499 8.2 25.5 6.6 21.9Ecuador USD 926 786 743 17.9 5.7 13.9 0.6Panama PAB 686 608 552 12.9 10.2 9.1 7.6Costa Rica CRC na. 308 473 307 774 * na. 0.2 na. –7.1Dominican Republic DOP na. 19 633 18 425 na. 6.6 na. 5.0Trinidad and Tobago TTD na. na. 3 635 + na. na. na. na.Uruguay UYU na. 9 975 8 537 + na. 16.8 na. 9.1Bahamas BSD na. na. na. na. na. na. na.El Salvador USD na. 356 + 294 na. 21.1 na. 19.8Jamaica JMD na. 24 227 22 872 na. 5.9 na. –3.3

Total 5.5 2.9Europe Germany EUR 94 235 * 91 811 88 533 2.6 3.7 1.5 3.4

United Kingdom GBP 62 219 * 60 983 59 108 2.0 3.2 –1.2 1.0France EUR 66 108 + 64 559 63 031 2.4 2.4 0.9 2.3Netherlands EUR 54 267 * 52 686 51 473 3.0 2.4 1.7 1.2Italy EUR 39 432 * 38 800 39 479 1.6 –1.7 0.1 –2.5Spain EUR 31 229 * 31 136 32 114 0.3 –3.0 –1.5 –2.8Russia RUB 1 018 560 961 812 932 655 5.9 3.1 –1.1 –7.8Switzerland CHF 24 303 + 24 206 23 750 0.4 1.9 –0.3 2.4Belgium EUR 10 350 * 10 195 10 884 1.5 –6.3 –0.7 –6.3Austria EUR 9 210 * 9 005 8 853 2.3 1.7 0.4 1.2Denmark DKK 58 731 + 57 716 56 807 1.8 1.6 –0.5 0.3Sweden SEK 63 406 59 800 72 885 6.0 –18.0 4.7 –17.7Poland PLN 26 509 + 24 960 23 933 6.2 4.3 3.4 0.3Norway NOK 52 275 50 570 49 438 3.4 2.3 1.0 0.1Ireland EUR 6 491 * 6 506 6 820 –0.2 –4.6 1.4 –3.0Turkey TRY 11 667 10 369 9 970 12.5 4.0 3.6 –2.1Portugal EUR 4 209 + 3 868 * 4 367 * 8.8 –11.4 7.3 –10.7Finland EUR 3 469 * 3 344 3 270 3.7 2.3 2.5 2.3Czech Republic CZK 80 594 + 83 904 82 571 –3.9 1.6 –5.1 1.0Luxembourg EUR 2 338 + 2 088 2 304 12.0 –9.4 8.9 –9.4Greece EUR na. 2 258 2 275 * na. –0.7 na. –1.9Ukraine UAH 18 734 * 19 615 22 913 –4.5 –14.4 –12.7 –26.1Romania RON 6 728 + 7 272 7 097 –7.5 2.5 –12.8 –3.0Slovenia EUR 1 437 + 1 443 1 376 –0.4 4.8 –2.4 3.9Hungary HUF 387 019 + 396 632 404 699 –2.4 –2.0 –6.8 –5.8Slovakia EUR 1 026 + 1 069 1 110 –4.0 –3.7 –4.7 –4.5Croatia HRK 6 788 6 923 7 140 –1.9 –3.0 –3.0 –5.3Bulgaria BGN na. * 1 463 1 563 na. –6.4 na. –8.7Malta EUR na. 716 650 na. 10.3 na. 8.3Serbia RSD 47 875 46 221 46 265 3.6 –0.1 –3.0 –8.0Cyprus EUR 439 * 424 401 3.5 5.9 0.9 5.7Liechtenstein CHF 514 + 483 327 6.4 47.9 5.7 48.6Lithuania LTL 1 012 908 1 405 11.5 –35.4 10.1 –38.0

Total 0.3 –0.4Asia Japan13 JPY 10 109 341 + 10 085 857 10 348 494 0.2 –2.5 0.6 –0.9

PR China CNY 484 846 + 367 986 312 584 31.8 17.7 27.5 18.5South Korea13 KRW 50 236 888 + 42 156 888 36 486 540 19.2 15.5 15.3 12.8Taiwan TWD 395 743 378 308 363 175 4.6 4.2 3.6 5.1India13 INR 482 480 * 392 260 335 645 23.0 16.9 9.8 5.4Singapore SGD 9 756 + 8 781 7 892 11.1 11.3 8.1 10.6Israel ILS na. 19 821 18 635 na. 6.4 na. 2.9Thailand THB 167 533 + 148 757 142 533 12.6 4.4 9.1 5.3United Arab Emirates12 AED 18 139 16 766 15 614 8.2 7.4 7.2 5.7Iran14 IRR na. 43 253 492 38 445 288 na. 12.5 na. –0.2Saudi Arabia SAR 16 282 * 13 607 10 325 19.7 31.8 13.6 25.4Malaysia13 MYR 12 257 * 11 520 10 896 6.4 5.7 4.3 5.7Indonesia IDR 31 441 524 * 28 951 680 26 567 890 8.6 9.0 3.3 4.0Hong Kong HKD 24 090 + 22 954 21 303 4.9 7.8 2.5 7.2Qatar QAR na. 2 814 * 3 080 na. –8.7 na. –4.0Vietnam VND 17 051 836 + 13 643 960 10 879 250 25.0 25.4 14.8 17.1Kazakhstan KZT 121 318 103 958 127 705 16.7 –18.6 9.0 –24.1Lebanon LBP na. 1 085 400 889 884 na. 22.0 na. 20.5Philippines PHP 35 645 * 32 883 31 496 8.4 4.4 4.4 1.1Oman OMR na. 197 + 167 na. 18.1 na. 13.6Kuwait KWD na. 134 146 na. –7.7 na. –11.2Pakistan PKR 46 311 * 43 588 41 682 6.2 4.6 –6.7 –8.0Jordan JOD 374 * 330 297 13.1 11.1 7.7 11.9Bahrain BHD na. 143 135 na. 6.1 na. 3.2Sri Lanka LKR na. na. na. na. na. na. na.Bangladesh BDT na. na. 12 583 na. na. na. na.Macao MOP na. na. 858 na. na. na. na.

Total 9.8 6.1Africa South Africa11 ZAR 73 966 68 100 61 800 8.6 10.2 4.2 2.9

Morocco MAD na. 14 165 13 190 na. 7.4 na. 6.3Algeria DZD na. 71 550 62 490 na. 14.5 na. 8.3Nigeria NGN na. na. na. na. na. na. na.Egypt15 EGP 5 170 4 750 4 170 8.8 13.9 –2.6 –2.0Tunisia TND na. 888 852 na. 4.2 na. 0.4Kenya KES na. 43 108 36 896 na. 16.8 na. 7.0Namibia NAD 2 029 1 756 1 423 15.5 23.4 10.3 13.4

Total 4.1 3.8Oceania Australia16 AUD 37 621 35 765 33 791 5.2 5.8 2.3 3.9

New Zealand16 NZD 9 699 9 425 8 838 2.9 6.6 0.6 4.4

Total 2.0 4.0World 2.1 0.3

37


Table VII: Non–life premium volume in USD in 2010

Premium volume Change (in %) 2010 Share of Share of(in millions of USD) nominal inflation- total business world market

Ranking Country 2010 2009 (in USD) adjusted 17 2010 (in %) 2010 (in %)North America 1 United States10 659 915 + 648 083 1.8 0.2 56.6 36.28

8 Canada11 63 947 + 54 342 17.7 4.3 55.4 3.52Total 723 861 702 425 3.1 0.5 56.5 39.80


14 Brazil 30 847 * 23 980 28.6 7.9 48.1 1.7021 Mexico 10 250 + 9 668 6.0 –4.8 53.4 0.5627 Argentina 8 165 + 6 573 24.2 18.1 80.7 0.4528 Venezuela 7 851 * 12 318 –36.3 –1.3 96.0 0.4338 Colombia 4 523 + 3 609 25.3 7.4 70.0 0.2543 Chile 3 272 2 512 30.2 15.2 39.5 0.1854 Peru 1 201 1 042 15.3 6.6 51.8 0.0761 Ecuador 926 786 17.9 13.9 83.6 0.0566 Panama 686 608 12.9 9.1 74.7 0.0468 Costa Rica 644 ** 538 19.6 na. 90.8 0.0471 Dominican Republic 601 ** 545 10.3 na. 84.6 0.0373 Trinidad and Tobago 587 ** 498 ** 17.9 na. 70.5 0.0375 Uruguay 576 ** 442 30.4 na. 78.6 0.0378 Bahamas 542 ** 536 ** 1.1 na. 74.2 0.0384 El Salvador 364 ** 356 + 2.1 na. 65.9 0.0285 Jamaica 314 ** 276 14.0 na. 55.5 0.02

Other countries 1 970 1 772 83.3 0.11Total 73 320 66 058 11.0 5.5 57.3 4.03

Europe 2 Germany 124 949 * 127 945 –2.3 1.5 52.1 6.874 United Kingdom 96 191 * 95 446 0.8 –1.2 31.0 5.295 France 87 654 + 89 967 –2.6 0.9 31.3 4.826 Netherlands 71 954 * 73 422 –2.0 1.7 74.1 3.969 Italy 52 285 * 54 070 –3.3 0.1 30.0 2.87

11 Spain 41 408 * 43 390 –4.6 –1.5 54.4 2.2812 Russia 40 742 38 940 4.6 –1.1 97.8 2.2415 Switzerland 23 310 + 22 278 4.6 –0.3 44.7 1.2816 Belgium 13 723 * 14 208 –3.4 –0.7 33.4 0.7518 Austria 12 212 * 12 549 –2.7 0.4 54.9 0.6720 Denmark 10 443 + 10 766 –3.0 –0.5 35.5 0.5723 Sweden 8 806 7 808 12.8 4.7 23.0 0.4824 Poland 8 786 + 7 996 9.9 3.4 49.5 0.4825 Norway 8 644 8 041 7.5 1.0 43.7 0.4826 Ireland 8 606 * 9 066 –5.1 1.4 18.0 0.4729 Turkey 7 786 6 704 16.1 3.6 84.4 0.4333 Portugal 5 580 + 5 390 * 3.5 7.3 25.6 0.3137 Finland 4 599 * 4 660 –1.3 2.5 20.5 0.2540 Czech Republic 4 220 + 4 401 –4.1 –5.1 53.3 0.2345 Luxembourg 3 100 + 2 912 6.4 8.9 9.4 0.1746 Greece 2 922 ** 3 146 ** –7.1 na. 48.0 0.1647 Ukraine 2 361 * 2 518 –6.2 –12.7 95.9 0.1348 Romania 2 117 + 2 385 –11.2 –12.8 80.4 0.1249 Slovenia 1 906 + 2 012 –5.3 –2.4 68.7 0.1050 Hungary 1 861 + 1 960 –5.1 –6.8 46.5 0.1052 Slovakia 1 361 + 1 490 –8.7 –4.7 52.2 0.0753 Croatia 1 235 1 310 –5.7 –3.0 73.4 0.0756 Bulgaria 1 012 * 1 040 –2.7 na. 88.0 0.0657 Malta 1 009 ** 998 1.0 na. 68.8 0.0670 Serbia 616 684 –9.9 –3.0 84.7 0.0374 Cyprus 582 * 591 –1.6 0.9 53.9 0.0380 Liechtenstein 493 + 445 10.9 5.7 5.5 0.0383 Lithuania 388 366 6.2 10.1 65.2 0.02

Other countries 1 914 2 063 86.4 0.11Total 654 775 660 968 –0.9 0.3 40.4 36.00

Asia 3 Japan13 116 489 + 108 619 7.2 0.6 20.9 6.407 PR China 71 628 + 53 872 33.0 27.5 33.4 3.94

10 South Korea13 43 291 + 34 835 24.3 15.3 37.8 2.3817 Taiwan 12 505 11 444 9.3 3.6 16.4 0.6919 India13 10 562 * 8 274 27.7 9.8 13.5 0.5830 Singapore 7 155 + 6 037 18.5 8.1 41.3 0.3932 Israel 5 593 ** 5 041 10.9 na. 50.0 0.3134 Thailand 5 285 + 4 336 21.9 9.1 38.9 0.2935 United Arab Emirates12 4 939 ** 4 565 8.2 7.2 84.1 0.2736 Iran14 4 736 ** 4 385 8.0 na. 93.1 0.2639 Saudi Arabia 4 342 * 3 629 19.7 13.6 92.7 0.2441 Malaysia13 3 868 * 3 331 16.1 4.3 32.8 0.2142 Indonesia 3 461 * 2 777 24.6 3.3 32.5 0.1944 Hong Kong 3 101 + 2 961 4.7 2.5 12.1 0.1760 Qatar 933 ** 773 * 20.7 na. 100.0 0.0562 Vietnam 916 + 800 14.6 14.8 55.3 0.0563 Kazakhstan 823 705 16.8 9.0 86.7 0.0564 Lebanon 812 ** 720 12.8 na. 75.6 0.0465 Philippines 790 * 690 14.5 4.4 37.0 0.0469 Oman 629 ** 514 + 22.5 na. 83.0 0.0376 Kuwait 569 ** 467 21.9 na. 79.2 0.0377 Pakistan 544 * 533 1.9 –6.7 48.1 0.0379 Jordan 526 * 465 13.1 7.7 91.2 0.0381 Bahrain 433 ** 381 13.7 na. 71.4 0.0282 Sri Lanka 420 ** 365 ** 14.8 na. 60.0 0.0287 Bangladesh 234 ** 205 ** 13.8 na. 24.4 0.0188 Macao 129 ** 105 ** 23.5 na. 25.2 0.01


Africa 22 South Africa11 10 111 8 085 25.1 4.2 19.0 0.5651 Morocco 1 764 ** 1 758 0.3 na. 68.1 0.1055 Algeria 1 075 ** 985 9.1 na. 92.5 0.0658 Nigeria 1 008 ** 828 ** 21.8 na. 84.3 0.0659 Egypt15 938 ** 861 8.9 –2.6 59.2 0.0567 Tunisia 673 ** 657 2.4 na. 86.8 0.0472 Kenya 595 ** 557 6.7 na. 66.9 0.0386 Namibia 277 207 33.8 10.3 31.3 0.02


Oceania 13 Australia16 34 528 27 935 23.6 2.3 47.6 1.9031 New Zealand16 6 998 5 890 18.8 0.6 83.9 0.38


World 1 818 893 1 742 193 4.4 2.1 41.9 100.00

38


Table VIII: Insurance density: premiums1 per capita in USD in 2010

Ranking Country Total business Life business Non-life businessNorth America 12 United States10 3 758.9 + 1 631.8 + 2 127.2 +

15 Canada11 3 408.7 * 1 521.8 * 1 886.9 +Total 3 724.4 1 620.9 2 103.5


24 Bahamas 2 110.1 ** 544.6 ** 1 565.5 **36 Trinidad and Tobago 619.7 ** 182.9 ** 436.9 **40 Chile 483.1 292.3 190.747 Brazil 327.6 * 169.9 157.7 *49 Venezuela 281.6 * 11.3 * 270.3 *50 Panama 261.9 66.3 195.753 Argentina 248.4 + 47.8 + 200.6 +55 Uruguay 217.5 ** 46.6 ** 170.9 **56 Jamaica 207.3 ** 92.2 ** 115.1 **60 Mexico 173.3 + 80.8 + 92.5 +62 Costa Rica 152.8 ** 14.0 ** 138.7 **64 Colombia 139.5 + 41.8 + 97.7 +69 El Salvador 89.1 ** 30.4 ** 58.7 **70 Ecuador 80.4 13.2 67.272 Peru 78.6 37.9 40.774 Dominican Republic 69.4 ** 10.7 ** 58.8 **

Total 219.1 93.5 125.6Europe 1 Switzerland 6 633.7 + 3 666.8 2 966.9 +

2 Netherlands 5 845.3 * 1 511.8 * 4 333.5 *3 Luxembourg1 5 653.2 + 3 698.3 + 1 954.9 +4 Denmark 5 084.2 + 3 429.2 1 655.1 +5 United Kingdom1 4 496.6 * 3 436.3 * 1 060.2 *7 Ireland1 4 296.6 * 3 213.7 * 1 082.9 *8 France1 4 186.6 * 2 937.5 * 1 249.0 +9 Finland 4 181.5 * 3 323.9 * 857.6 *

10 Sweden 4 081.7 3 141.2 940.511 Belgium1 3 782.6 * 2 625.7 * 1 156.9 *13 Norway1 3 736.0 2 281.1 1 454.918 Germany1 2 903.8 * 1 402.2 + 1 501.6 *20 Italy1 2 766.1 * 1 978.7 * 787.3 *21 Austria 2 651.2 * 1 194.9 * 1 456.3 *22 Liechtenstein 2 380.3 + 2 357.3 + 23.0 +25 Portugal 2 035.4 * 1 516.2 * 519.2 +27 Spain 1 650.2 * 752.1 * 898.1 *29 Slovenia 1 352.7 + 423.8 + 928.9 +30 Cyprus 1 330.5 * 613.8 * 716.7 *33 Malta 971.0 ** 646.0 ** 325.1 **35 Czech Republic 752.7 + 351.3 + 401.4 +38 Greece 537.9 ** 279.8 ** 258.2 **41 Slovakia 480.5 + 229.7 + 250.8 +42 Poland 465.5 + 235.2 + 230.3 +45 Hungary 399.7 + 213.6 + 186.0 +46 Croatia 379.2 100.8 278.448 Russia 296.8 6.4 290.458 Lithuania 179.6 + 62.4 + 117.163 Bulgaria 152.5 * 18.3 * 134.2 *65 Romania 122.8 + 24.0 + 98.8 +66 Turkey 121.6 18.9 102.767 Serbia 99.6 15.2 84.478 Ukraine 54.2 * 2.2 * 52.0 *

Total 1 850.2 1 110.6 739.6Asia 6 Japan13 4 390.2 + 3 472.8 + 917.4 +

14 Hong Kong 3 635.5 + 3 197.3 + 438.2 +17 Taiwan 3 296.2 2 756.8 539.319 Singapore1 2 823.4 + 2 101.4 + 722.1 +23 South Korea13 2 339.4 + 1 454.3 885.1 +28 Israel 1 534.0 ** 766.3 ** 767.7 **31 United Arab Emirates12 1 248.1 ** 198.8 ** 1 049.3 **34 Macao 937.5 ** 701.4 ** 236.1 **37 Qatar 618.8 ** 0.0 ** 618.8 **39 Bahrain 527.0 ** 150.6 ** 376.4 **43 Malaysia13 421.1 * 282.8 * 138.3 *51 Oman 260.8 ** 44.3 ** 216.5 **52 Lebanon 252.5 ** 61.6 ** 190.9 **54 Kuwait 235.5 ** 48.9 * 186.6 **57 Thailand 199.4 + 121.9 + 77.5 +59 Saudi Arabia 178.4 * 13.0 * 165.4 *61 PR China 158.4 + 105.5 + 52.9 +68 Jordan 89.1 * 7.8 * 81.3 *75 Iran14 67.8 ** 4.7 ** 63.1 **76 India13 64.4 * 55.7 * 8.7 *77 Kazakhstan 60.3 8.0 52.379 Indonesia 45.8 * 30.9 * 14.9 *80 Sri Lanka 34.2 ** 13.7 ** 20.6 **82 Philippines 22.8 * 14.3 * 8.4 *85 Vietnam 18.6 + 8.3 + 10.3 +87 Pakistan 6.1 * 3.2 * 2.9 *88 Bangladesh 5.8 ** 4.4 ** 1.4 **

Total 281.5 208.1 73.5Africa 32 South Africa11 1 054.7 * 854.6 * 200.1

44 Namibia 401.1 275.7 125.471 Morocco 80.0 ** 25.6 ** 54.5 **73 Tunisia 74.8 ** 9.9 ** 64.9 **81 Algeria 32.8 ** 2.5 ** 30.3 **83 Kenya 21.8 ** 7.2 ** 14.6 **84 Egypt15 18.8 ** 7.7 ** 11.1 **86 Nigeria 7.6 ** 1.2 ** 6.4 **

Total 64.7 45.8 18.9Oceania 16 Australia 3 369.2 1 766.3 1 603.0

26 New Zealand 1 937.3 + 311.1 + 1 626.3Total 2 283.1 1 109.7 1 173.4

World3 627.3 364.3 263.0

39


Table IX: Insurance penetration: permiums1 as % of GDP in 2010

Ranking Country Total business Life business Non-life businessNorth America 18 United States10 8.0 + 3.5 + 4.5 +

19 Canada11 7.3 * 3.3 * 4.1 +Total 7.9 3.4 4.5


10 Bahamas 9.9 ** 2.5 ** 7.3 **36 Jamaica 4.0 ** 1.8 ** 2.2 **38 Chile 4.0 2.4 1.641 Venezuela 3.5 * 0.1 * 3.3 *42 Panama 3.4 0.9 2.543 Trinidad and Tobago 3.4 ** 1.0 ** 2.4 **44 Brazil 3.1 * 1.6 1.5 *50 Argentina 2.8 + 0.5 + 2.2 +53 El Salvador 2.6 ** 0.9 ** 1.7 **56 Colombia 2.3 + 0.7 + 1.6 +59 Costa Rica 2.0 ** 0.2 ** 1.8 **62 Ecuador 1.9 0.3 1.664 Mexico 1.9 + 0.9 + 1.0 +66 Uruguay 1.7 ** 0.4 ** 1.4 **71 Peru 1.6 0.7 0.875 Dominican Republic 1.4 ** 0.2 ** 1.2 **

Total 2.7 1.1 1.5Europe 3 United Kingdom1 12.4 * 9.5 * 2.9 *

4 Netherlands 12.4 * 3.2 * 9.2 *7 France1 10.5 * 7.4 * 3.1 +9 Switzerland 9.9 + 5.5 4.4 +

11 Portugal 9.5 * 7.0 * 2.4 +12 Finland 9.4 * 7.5 * 1.9 *13 Ireland1 9.2 * 6.9 * 2.3 *14 Denmark 9.1 + 6.1 3.0 +15 Belgium1 8.8 * 6.1 * 2.7 *16 Sweden 8.4 6.5 1.917 Italy1 8.1 * 5.8 * 2.3 *21 Germany1 7.2 * 3.5 + 3.7 *24 Austria 5.9 * 2.7 * 3.2 *25 Slovenia 5.9 + 1.8 + 4.1 +27 Spain 5.4 * 2.5 * 2.9 *28 Luxembourg1 5.4 + 3.5 + 1.9 +31 Malta 4.9 ** 3.3 ** 1.6 **33 Cyprus 4.7 * 2.2 * 2.5 *34 Norway1 4.5 2.7 1.737 Czech Republic 4.0 + 1.9 + 2.1 +40 Poland 3.7 + 1.9 + 1.8 +45 Hungary 3.0 + 1.6 + 1.4 +46 Slovakia 3.0 + 1.4 + 1.5 +49 Croatia 2.8 0.7 2.054 Bulgaria 2.5 * 0.3 * 2.2 *55 Russia 2.3 0.0 2.360 Greece 2.0 ** 1.0 ** 1.0 **63 Ukraine 1.9 * 0.1 * 1.8 *65 Serbia 1.8 0.3 1.568 Romania 1.7 + 0.3 + 1.4 +69 Liechtenstein 1.7 + 1.7 + 0.0 +70 Lithuania 1.7 + 0.6 + 1.177 Turkey 1.3 0.2 1.1

Total 7.5 4.5 3.0Asia 1 Taiwan 18.4 15.4 3.0

5 Hong Kong 11.4 + 10.1 + 1.4 +6 South Korea13 11.2 + 7.0 4.2 +8 Japan13 10.1 + 8.0 + 2.1 +

22 Singapore1 6.1 + 4.6 + 1.6 +29 Israel 5.2 ** 2.6 ** 2.6 **30 India13 5.1 * 4.4 * 0.7 *32 Malaysia13 4.8 * 3.2 * 1.6 *35 Thailand 4.3 + 2.6 + 1.7 +39 PR China 3.8 + 2.5 + 1.3 +51 Bahrain 2.8 ** 0.8 ** 2.0 **52 Lebanon 2.8 ** 0.7 ** 2.1 **57 Jordan 2.1 * 0.2 * 1.9 *58 United Arab Emirates12 2.1 ** 0.3 ** 1.8 **61 Macao 2.0 ** 1.5 ** 0.5 **72 Indonesia 1.5 * 1.0 * 0.5 *73 Sri Lanka 1.4 ** 0.6 ** 0.9 **74 Vietnam 1.4 + 0.6 + 0.8 +76 Oman 1.3 ** 0.2 ** 1.1 **78 Iran14 1.2 ** 0.1 ** 1.1 **79 Philippines 1.1 * 0.7 * 0.4 *80 Saudi Arabia 1.1 * 0.1 * 1.0 *81 Bangladesh 0.9 ** 0.7 ** 0.2 **82 Qatar 0.8 ** 0.0 ** 0.8 **85 Kazakhstan 0.7 0.1 0.686 Pakistan 0.7 * 0.3 * 0.3 *87 Kuwait 0.5 ** 0.1 * 0.4 **

Total 6.2 4.5 1.6Africa 2 South Africa11 14.8 * 12.0 * 2.8

20 Namibia 7.3 5.0 2.347 Kenya 2.8 ** 0.9 ** 1.9 **48 Morocco 2.8 ** 0.9 ** 1.9 **67 Tunisia 1.7 ** 0.2 ** 1.5 **83 Algeria 0.8 ** 0.1 ** 0.7 **84 Egypt15 0.7 ** 0.3 ** 0.4 **88 Nigeria 0.5 ** 0.1 ** 0.4 **

Total 3.9 2.7 1.1Oceania 23 New Zealand 6.0 + 1.0 + 5.0

26 Australia 5.9 3.1 2.8Total 5.8 2.8 3.0

World3 6.9 4.0 2.9

40


Table X: Macroeconomic indicators in 2010

Gross domestic product Exchange ratePopulation Real change local currency per USD

Ranking by GDP

(millions) USDbn (in %) Inflation rate (in %) ChangeCountry 2010 2010 2010 2009 2010 2009 2010 2009 (in %)

North America 1 United States 310.2 14 641 2.8 –2.6 1.6 –0.3 1.00 1.00 0.0010 Canada 33.9 1 574 3.1 –2.5 1.8 0.3 1.03 1.14 –9.76

Total 344.1 16 215 2.9 –2.6Latin America and Caribbean

7 Brazil 195.6 2 088 7.6 –0.6 5.0 4.9 1.76 2.00 –11.8914 Mexico 110.8 1 035 5.5 –6.1 4.2 5.3 12.64 13.51 –6.4928 Argentina 40.7 364 9.0 0.9 10.5 6.3 3.90 3.71 5.0233 Colombia 46.3 282 4.0 0.8 2.3 4.2 1 898.57 2 166.79 –12.3838 Venezuela 29.0 235 –2.0 –3.1 28.2 27.1 4.26 2.15 98.5245 Chile 17.2 207 5.2 –1.4 3.0 4.9 510.23 559.61 –8.8251 Peru 29.5 149 8.8 0.9 1.5 2.9 2.82 3.01 –6.2163 Ecuador 13.8 59 2.9 0.4 3.5 5.2 1.00 1.00 0.0066 Dominican Republic 10.2 51 5.8 3.5 6.3 1.4 36.78 36.03 2.0871 Uruguay 3.4 42 8.3 2.9 6.7 7.1 20.00 22.57 –11.3875 Costa Rica 4.6 35 4.2 –1.3 5.7 7.8 525.83 573.29 –8.2878 Panama 3.5 27 5.5 3.2 3.5 2.4 1.00 1.00 0.0080 Trinidad and Tobago 1.3 25 1.0 –3.2 10.0 7.0 6.36 6.32 0.6383 El Salvador 6.2 22 1.0 –3.5 1.2 1.1 1.00 1.00 0.0084 Jamaica 2.7 14 –0.1 –3.1 12.6 9.6 86.73 87.89 –1.3287 Bahamas 0.3 7 0.5 –4.3 1.7 2.1 1.00 1.00 0.00

Total18 583.7 4 779 5.6 –2.0Europe 4 Germany 81.8 3 306 3.4 –4.7 1.1 0.3 0.75 0.72 5.10

5 France 64.9 2 580 1.5 –2.5 1.5 0.1 0.75 0.72 5.106 United Kingdom 62.2 2 251 1.3 –4.9 3.3 2.2 0.65 0.64 1.248 Italy 60.4 2 052 1.1 –5.0 1.5 0.8 0.75 0.72 5.109 Russia 140.3 1 803 4.0 –7.8 7.1 11.8 25.00 24.70 1.21

12 Spain 46.1 1 409 –0.1 –3.7 1.8 –0.3 0.75 0.72 5.1016 Netherlands 16.6 784 1.8 –3.9 1.3 1.2 0.75 0.72 5.1017 Turkey 75.8 729 8.3 –4.7 8.6 6.3 1.50 1.55 –3.1219 Switzerland 7.9 524 2.6 –1.9 0.7 –0.5 1.04 1.09 –4.0420 Poland 38.2 476 3.8 1.7 2.7 4.0 3.02 3.12 –3.3421 Belgium 10.9 466 2.0 –2.6 2.2 –0.1 0.75 0.72 5.1022 Sweden 9.4 456 5.3 –5.2 1.3 –0.3 7.20 7.66 –6.0026 Norway 4.9 409 0.4 –1.2 2.4 2.2 6.05 6.29 –3.8327 Austria 8.4 376 1.9 –3.9 1.8 0.5 0.75 0.72 5.1031 Denmark 5.5 311 2.1 –5.2 2.3 1.3 5.62 5.36 4.9132 Greece 11.3 304 –4.5 –2.0 4.7 1.2 0.75 0.72 5.1037 Finland 5.4 239 3.1 –8.3 1.2 0.0 0.75 0.72 5.1039 Portugal 10.6 229 1.4 –2.5 1.4 –0.8 0.75 0.72 5.1044 Ireland 4.5 208 –0.8 –7.6 –1.6 –1.7 0.75 0.72 5.1046 Czech Republic 10.5 197 2.3 –4.2 1.2 0.6 19.10 19.06 0.1849 Romania 21.4 155 –1.2 –7.1 6.1 5.6 3.18 3.05 4.2253 Hungary 10.0 134 1.2 –6.7 4.7 4.0 207.94 202.34 2.7756 Ukraine 45.4 132 4.2 –14.8 9.4 15.9 7.94 7.79 1.8561 Slovakia 5.4 88 4.0 –4.8 0.7 0.9 0.75 0.72 5.1062 Croatia 4.4 60 –1.5 –5.8 1.1 2.4 5.50 5.29 4.0265 Luxembourg 0.5 54 3.3 –3.7 2.8 0.0 0.75 0.72 5.2068 Slovenia 2.1 47 1.2 –8.1 2.1 0.9 0.75 0.72 5.2069 Bulgaria 7.5 45 0.3 –4.9 3.0 2.5 1.48 1.41 5.0172 Serbia 7.3 40 1.5 –3.1 6.8 8.6 77.73 67.60 14.9974 Lithuania 3.3 36 1.3 –14.7 1.2 4.2 2.61 2.48 4.9281 Cyprus 0.8 23 0.9 –1.7 2.6 0.2 0.75 0.72 5.1086 Malta 0.4 8 3.5 –1.9 2.0 1.8 0.75 0.72 5.1088 Liechtenstein 0.0 5 2.3 –6.1 0.7 –0.5 1.04 1.09 –4.04

Total18 811.0 20 094 2.1 –4.4Asia 2 PR China 1 355.2 5 648 10.4 9.0 3.3 –0.7 6.77 6.83 –0.90

3 Japan 127.0 5 519 4.0 –2.6 –0.3 –1.6 86.78 92.86 –6.5411 India 1 216.5 1 526 8.4 7.4 12.0 10.9 45.68 47.41 –3.6515 South Korea 48.9 1 022 6.1 0.1 3.4 2.5 1 160.44 1 210.19 –4.1118 Indonesia 232.8 707 6.1 4.6 5.1 4.8 9 085.01 10 426.74 –12.8723 Saudi Arabia 26.2 435 3.8 0.2 5.3 5.1 3.75 3.75 0.0024 Iran 75.1 425 2.6 0.9 11.5 12.7 10 308.20 9 864.30 4.5025 Taiwan 23.2 415 10.0 –1.9 1.0 –0.9 31.65 33.06 –4.2630 Thailand 68.2 319 7.9 –2.3 3.3 –0.8 31.70 34.31 –7.6134 United Arab Emirates 4.7 280 2.4 –1.3 0.9 1.6 3.67 3.67 0.0036 Malaysia 28.0 246 7.3 –1.7 2.0 0.0 3.17 3.46 –8.3840 Hong Kong 7.1 225 6.8 –2.7 2.4 0.5 7.77 7.75 0.2241 Singapore 4.8 223 14.6 –0.7 2.8 0.6 1.36 1.45 –6.2643 Israel 7.3 217 4.7 0.3 2.7 3.3 3.74 3.93 –4.9247 Philippines 93.8 189 7.3 1.0 3.8 3.2 45.11 47.64 –5.3148 Pakistan 184.8 172 4.1 1.2 13.9 13.6 85.19 81.71 4.2654 Kuwait 3.1 133 3.1 –2.4 4.0 4.0 0.29 0.29 –0.4155 Kazakhstan 15.8 133 7.0 1.2 7.1 7.3 147.35 147.50 –0.1057 Qatar 1.5 119 16.8 8.6 –2.4 –4.9 3.64 3.64 0.0058 Vietnam 89.0 117 6.8 5.3 8.9 7.1 18 613.00 17 065.10 9.0759 Bangladesh 164.4 101 6.1 5.7 8.1 5.4 69.65 69.04 0.8864 Oman 2.9 57 6.0 1.1 3.2 3.9 0.38 0.38 0.0067 Sri Lanka 20.4 48 7.0 3.5 5.5 3.5 113.07 114.94 –1.6373 Lebanon 4.3 39 7.4 9.0 4.0 1.2 1 507.50 1 507.50 0.0077 Jordan 6.5 27 3.1 2.3 5.0 –0.7 0.71 0.71 0.0079 Macao 0.5 26 20.3 1.3 2.8 1.2 8.00 7.98 0.2282 Bahrain 1.2 22 4.4 3.1 2.0 2.8 0.38 0.38 0.00

Total18 4 111.3 18 805 7.0 2.6Africa 29 South Africa 50.5 360 2.8 –1.7 4.3 7.1 7.32 8.42 –13.15

35 Nigeria 158.3 249 7.9 7.0 13.7 11.5 150.00 148.90 0.7442 Egypt 84.5 219 5.1 4.7 11.8 16.2 5.51 5.51 –0.0550 Algeria 35.4 153 3.3 2.4 3.9 5.7 74.36 72.65 2.3660 Morocco 32.4 92 3.2 4.9 0.9 1.0 8.40 8.06 4.2870 Tunisia 10.4 45 4.0 3.0 4.4 3.8 1.43 1.35 6.0176 Kenya 40.9 31 5.1 2.6 4.0 9.2 79.24 77.35 2.4485 Mauritius 2.2 12 3.8 –0.8 4.7 8.8 7.32 8.47 –13.67

Total18 1 031.3 1 728 4.8 2.7Oceania 13 Australia 21.5 1 235 2.7 1.3 2.8 1.8 1.09 1.28 –14.90

52 New Zealand 4.3 140 1.8 0.1 2.3 2.1 1.39 1.60 –13.38Total18 35.5 1 393 2.7 1.2

World 6 917.0 63 014 4.0 –1.7

Recent sigma publications

2011 No 1 Natural catastrophes and man-made disasters in 2010: a year of devastating and costly events

No 2 World insurance in 2010: Premiums back to growth – capital increases

2010 No 1 Natural catastrophes and man-made disasters in 2009: catastrophes claim fewer victims, insured losses fall

No 2 World insurance in 2009: premiums dipped, but industry capital improved No 3 Regulatory issues in insurance No 4 The impact of inflation on insurers No 5 Insurance investment in a challenging global environment No 6 Microinsurance – risk protection for 4 billion people

2009 No 1 Scenario analysis in insurance No 2 Natural catastrophes and man-made disasters in 2008:

North America and Asia suffer heavy losses No 3 World insurance in 2008: life premiums fall in the industrialised countries – strong

growth in the emerging economies No 4 The role of indices in transferring insurance risks to the capital markets No 5 Commercial liability: a challenge for businesses and their insurers

2008 No 1 Natural catastrophes and man-made disasters in 2007: high losses in Europe No 2 Non-life claims reserving: improving on a strategic challenge No 3 World insurance in 2007: emerging markets leading the way No 4 Innovative ways of financing retirement No 5 Insurance in the emerging markets: overview and prospects for Islamic insurance

2007 No 1 Insurance in emerging markets: sound development; greenfield for agricultural insurance No 2 Natural catastrophes and man-made disasters in 2006: low insured losses No 3 Annuities: a private solution to longevity risk No 4 World insurance in 2006: premiums came back to “life” No 5 Bancassurance: emerging trends, opportunities and challenges No 6 To your health: diagnosing the state of healthcare and the global private

medical insurance industry

2006 No 1 Getting together: globals take the lead in life insurance M & A No 2 Natural catastrophes and man-made disasters 2005:

high earthquake casualties, new dimension in windstorm losses No 3 Measuring underwriting profitability of the non-life insurance industry No 4 Solvency II: an integrated risk approach for European insurers No 5 World insurance in 2005: moderate premium growth, attractive profitability No 6 Credit and surety: solidifying commitments No 7 Securitization – new opportunities for insurers and investors

2005 No 1 Natural catastrophes and man-made disasters in 2004:

more than 300 000 fatalities, record insured losses No 2 World insurance 2004: growing premiums and stronger balance sheets No 3 Insurersʼ cost of capital and economic value creation:

principles and practical implications No 4 Innovating to insure the uninsurable No 5 Insurance in emerging markets: focus on liability developments

Swiss Reinsurance Company LtdEconomic Research & ConsultingMythenquai 50/60P.O. Box8022 ZurichSwitzerland

Telephone +41 43 285 2551Fax +41 43 282 [email protected]

sigma 2/2011

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