Costa Rica Insurance Report Q2 2016

BMI Industry View

Table: Headline Insurance Forecasts (Costa Rica 2013-2020)

SWOT

Industry Forecast

Costa Rica Life Premiums Forecast

Table: Life Premiums (Costa Rica 2013-2020)

Table: Life Insurance Claims (Costa Rica 2010-2014)

Costa Rica Non-Life Premiums Forecast

Table: Non-Life Premiums (Costa Rica 2013-2020)

Table: Non-Life Insurance Claims (Costa Rica 2010-2014)

Costa Rica Non-Life Sub-Sector Forecast

Table: Non-Life Insurance Premiums by Product Line (Costa Rica 2013-2020)

Industry Risk/Reward Index

Latin America Insurance Risk/Reward Index

Table: Latin America and the Caribbean Insurance Risk/Reward Index - Q216

Market Overview

Life Market Overview

The Product Offering

The Competitive Landscape

Table: Life Insurance Market Sare, USDmn, 2011-2014

Non-Life Market Overview

The Product Offering

The Competitive Landscape

Table: Non-Life Insurance Market Share, USDmn, 2011-2014

Company Profile

ASSA

INS

MAPFRE

Methodology

Industry Forecast Methodology

Risk/Reward Index Methodology

Table: Indicators

Table: Weighting of Indicators

Costa Rica Insurance Report Q2 2016

BMI View: We maintain a positive outlook for the Costa Rican insurance segment as a whole. Both the lifeinsurance and non-life segments are poised for robust growth over the course of our forecast periodof 2016-2020. Insurance sector growth will be driven by rising incomes, a positive economic outlook, anuptick in real private final consumption and rising discretionary spending powers of households that havegrowing disposable incomes. The life sector is poised to grow on par with the non-life sector in 2016,driven by a desire for savings. The non-life sector will grow based on demand for insurance of big-ticketitems such as property, motor insurance and a robust growth prospect for the health insurance life. We arenevertheless cautious about the primary of the former state-owned monopoly, INS, which had premiums ofover 80% of the total insurance industry in the country. We believe that non-life competition to challengeINS primary is stronger than the life insurance competition at present. Smaller challengers, particularlythose with international experience, can capitalize on growth prospects by means of product innovation andprice competitiveness.Latest Updates & Industry Developments

We maintain a strong outlook for the insurance industry as a whole. We forecast a total insuranceindustry growth of 6.5% y-o-y in 2016, with premiums reaching USD1.3bn

Life sector growth will amount to 7.2% y-o-y in 2016, with premiums reaching USD160mn.

Non-life sector growth will approximate 6.4% with premiums reaching USD1.1bn in 2016.