Coface expects to boost premiums 50% in 2006 - Argentina
Tuesday, March 7, 2006

Argentina's largest export credit insurer Coface expects to grow premiums 50% this year to some 23mn pesos (US$7.5mn), company CEO Germán Fliess told BNamericas.

With the aim of diversifying from its core business of export credit insurance, Coface launched last year a surety insurance for custom bonds and expects this product to account for 10% of the company's premium portfolio by year-end.

Fliess also said the better economic environment in Argentina will prompt the company to begin offering domestic credit insurance policies.

"All of these products are designed to better service our exporter and importer customers," Fliess said.

Coface saw premiums rise 20% last year to some 15mn pesos.

As for competition, Fliess said companies are likely to reap the benefits of a largely untapped market in Argentina rather than fight among themselves for the same clients.

Last year, Spanish investment group Cesce acquired the local Compañía Argentina de Seguro de Crédito a la Exportación, which holds a 2.7% market share.

French-owned Coface dominates the local export credit insurance market with a roughly 90% share.

Jorge Porter
BNamericas.com