In 2017, Brazil’s economy reached a turning point, exiting from the deepest recession in decades. During the year, the economy grew by 1% y/y, supported by a record high agricultural harvest and an uptick in consumption, as a result of lower inflationary pressures, decreasing borrowing costs and positive sentiments over government reforms. Based on these fundamentals, in April 2018 the IMF raised its growth estimates for Brazil’s economy from 1.9% to 2.3% for 2018, expecting stronger private consumption and investment. The institution defended the government drive towards fiscal sustainability – including the adopted public spending cap at end-2016 and labour market reform in November 2017 – as key measures for the recovery of confidence and private sector investment. Nevertheless, economic growth is projected to remain subdued in the medium-term, at about 2.2% per year through 2022, weighed down by an ageing population, stagnant productivity and high uncertainty regarding the implementation of the government’s reform agenda. Mounting corruption investigations surrounding top government officials, coupled with the upcoming General Elections in October 2018, are rapidly closing the window for legislative action. Notably, reforms of the pension system, public healthcare and tax code are seen as essential to support macroeconomic stability, secure confidence and help the economy achieve its potential.

01 EXECUTIVE SUMMARY

02 SECTOR FORECAST 

03 SECTOR IN FOCUS

04 COMPETITIVE LANDSCAPE

05 COMPANIES IN FOCUS

06 REGULATORY ENVIRONMENT 

07 LIFE INSURANCE 

08 NON-LIFE INSURANCE

09 REINSURANCE

10 RETAIL CHANNELS