Insurance companies have 145% more capital

Ecuadornews:

Insurance companies are more strengthened. Not necessarily because they have proposed it, but because, due to the tax obligation, they must raise their capital by a minimum of $ 8 million. Following this agreement, whose deadline expired yesterday, the net resources available to the sector increased from $ 100.1 million to $ 245 million in three years. However, not all of them succeeded.  

This measure, approved in 2014 in the Monetary and Financial Code, generated misgivings in the sector. At first, many representatives of these companies questioned the capital increase because they believed that this would not be offset by the small volume of their businesses. And this is an idea that has not changed at all.

Although the majority of companies complied with increasing their funds, in the sector it is still believed that it is necessary to generate new opportunities that will help them to yield profits. “What we need is an adequate environment so that other products and markets can be exploited to support that purpose,” said Patricio Salas, secretary of this guild.

Eduardo Peña, Manager of Condor, one of the first insurers to capitalize, mentions that one option is for the Superintendency to approve the incursion of some companies into new premium segments. They are still waiting for the sale of life insurance to be approved. (I)

Source: http://www.expreso.ec/economia/economia-nacional-aseguradoras-capital-dinero-FM1691142