16 00 24.09.09 Osvaldo Do Nascimento Grand2


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Apresentação proferida durante o 6º. Seminário Internacional do CPC no CReCER realizado no hotel Grand Hayatt em São Paulo no dia 25/09/2009.

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16 00 24.09.09 Osvaldo Do Nascimento Grand2

  1. 1. CReCER’09 Latin America and the Caribbean Averting Contagion: A Look at the Insurance Sector Osvaldo do Nascimento September, 24th, 2009
  2. 2. Brazil Area (km 2 ): 8,511,965 GDP 2008: US$ 1,2 trillion Population 2007: 191.8 million About Brazil...
  3. 3. Inflation IPCA accumulated in 12 months Source: Brazilian Central Bank and IBGE 4,36% Aug 2009 last 12 months % p.y.
  4. 4. Nominal and Real SELIC Rate (in 12 months, % p.y.) Interest Rate Source: Brazilian Central Bank SELIC (Nominal Rate) Real Interest Rate 8,75% 4,25% % p.y.
  5. 5. <ul><ul><li>Net Debt </li></ul></ul>Source: Brazilian Central Bank Net debt of public sector (% GDP) Net debt/GDP Dollar denominated Debt/GDP 44,06% -9,24% 0,00 %
  6. 6. <ul><ul><li>International Reserves </li></ul></ul>Source: Brazilian Central Bank US$ 221,3 Billion <ul><li>Public sector is net foreign creditor since 2006 </li></ul><ul><li>Brazil is investment grade since 2008 </li></ul>Sep, 10 th ,2009
  8. 8. <ul><ul><li>Insurance Market Revenue </li></ul></ul><ul><ul><li>(Premiums – % Over GDP – 2008) </li></ul></ul>Source: CNSeg/SUSEP
  9. 9. <ul><ul><li>(Distribution by Insurance Category – 2008) </li></ul></ul>Source: CNSeg/SUSEP (*) Considers the VGBL revenue (**) Total revenue 2008 in BR$ converted in US$ on dec/08 (***) Do not consider closed pension funds revenue Total Premium Revenue 2008: US$ 41,2 billion (**) <ul><ul><li>Insurance Market Revenue </li></ul></ul>(***) Pension Funds Total Asset Under Management 2008: US$ 252,6 billion (**) Closed Pension Funds Opened Pension Funds
  10. 10. <ul><ul><li>Insurance and Pension Government Key Players </li></ul></ul>Ministry of Health CONSU Conselho de Saúde Suplementar Private Health Insurance Council ANS Agência Nacional de Saúde Suplementar Private Health Insurance Agency Health Insurance Companies and Health Private Plans Operators Private Health Insurance Advisory Board Ministry of Finance CNSP Conselho Nacional de Seguros Privados National Private Insurance Council SUSEP Superintendência de Seguros Privados Private Insurance Superintendence Insurance and Reinsurance Companies Private Pension Operators Capitalization Companies CMN Conselho Monetário Nacional National Monetary Council (Investment Prudential Rules) Ministry of Social Security CGPC Conselho de Gestão da Previdência Complementar Complementary Pension Management Council SPC Secretaria de Previdência Complementar Secretary of Private Pension Funds Pension Funds
  11. 11. CNSEG Confederação Nacional das Empresas de Seguros Gerais, Previdência Privada e Vida, Saúde Suplementar e Capitalização National Confederation of General Insurance Companies, Private Pensions and Life, Private Health Insurance and Capitalization FENAPREVI Federação Nacional de Previdência Complementar e Vida Life Insurance Private Pension Plans No Life Insurance Health Insurance Private Health Plans Capitalization FENASAÚDE Federação Nacional de Saúde Suplementar FENACAP Federação Nacional de Capitalização FENSEG Federação Nacional de Seguros Gerais <ul><ul><li>Insurance Institutional and Representative Model </li></ul></ul><ul><ul><li>Working since 2007 </li></ul></ul>
  12. 12. <ul><ul><li>Legal Prudential Requirements </li></ul></ul><ul><li>Many technical provision must be created </li></ul><ul><li>All financial and actuarial data are sent to SUSEP monthly </li></ul><ul><li>Independent actuarial and financial audit (annually) </li></ul><ul><li>Strong rules about asset allocation to invest those assets that guarantees de technical provisions and de “free assets” Slide 14 </li></ul><ul><li>To invest in assets that the insurance company or its controller or subsidiary is forbidden </li></ul><ul><li>Total transparency about the clearing process. SUSEP has access to the insurance companies every day </li></ul><ul><li>Rules to regulate the “No operational Liability” </li></ul><ul><li>Free rollover right to all pension participant </li></ul><ul><li>Strong internal control and compliance rules, included KYC </li></ul><ul><li>Reinsurance operations </li></ul><ul><li>Solvency rules (base capital, additional capital based on risks, adjusted net assts etc…) </li></ul>
  13. 13. <ul><ul><li>Know Your Client Rules </li></ul></ul><ul><li>Circular SUSEP 380/2008 requires strong procedures to create and maintain an anti-laundering and counter-terrorism financing structure </li></ul><ul><li>The Internal Control team has to follow all financial transactions and to notice the governmental agent (COAF) the suspected operations </li></ul><ul><li>The Politically Exposed Person have to be identified </li></ul><ul><li>The personal data information of all customers have to be keep under control </li></ul>
  14. 14. CReCER’09 Latin America and the Caribbean Averting Contagion: A Look at the Insurance Sector Osvaldo do Nascimento September, 24th, 2009
  15. 15. <ul><ul><li>CMN Prudential Requirement </li></ul></ul><ul><li>Max. 10% by no financial company and 20% by financial institution </li></ul><ul><li>Max. 20% of total capital of the company and 5% of total invested amount </li></ul>I- Fixed Income   Government Bonds 100% Private Fixed Income Titles or Fixed Income Mutual Funds 80% External Debt Mutual Funds/Cambial Mutual Funds 10% Agrobusiness Investments 5% II- Variable Income   Stocks and Variable Income Mutual Funds Slide 12 49% Stocks N2 40% Stocks N1 35% Other Stocks Categories 30% Multimarket Mutual Funds 15% Private Equity Funds 5% BDR/Mercosul Companies Equity 3% III- Real Estate   Real Estate 8% Real Estate Mutual Funds 10%