STXNEWS LATAM-Brazil's SulAmérica sees premiums rising-CEO

Wed Dec 12, 2012 11:18am EST

Brazilian insurers will likely increase the cost of policies next year to counter a decline in borrowing costs that drove down financial income and profit margins, Thomaz de Menezes, chief executive officer of SulAmérica Seguros e Previdencia SA , said on Wednesday. Under de Menezes, SulAmérica, Brazil's third-largest insurer, has stuck to discipline as a way to weather an adverse market scenario for insurers plagued with rising frequency ratios - a measure of the frequency of use of services covered by insurers - and claims.

He said at an event in São Paulo that reductions in prices for auto and healthcare insurance policies by some of SulAmérica's rivals are "not sustainable."