PACIFICO
Giving local assurance to global business

The investment grade from Fitch reflects Pacifico Seguros’ adequate capitalization ratios, above average liquidity and solid market share

David Saettone General Manager Pacífico Seguros

In today’s world, insurance is as ubiquitous as the air we breathe. In Peru, the land made famous by cloud-wreathed Inca city of Machu Picchu, which was recently heralded as one of the new seven wonders of the world, one company stands head and shoulders above the competition – Pacífico Seguros.

The company specialises in three core sectors: property and casualty, life and health insurance. Through its association with American insurance giant AIG, which has a global presence stretching across 130 countries, Pacífico Seguros has seen growth of 25% in the first quarter of 2007, against a wider sectorial growth rate of 3%. During this same period, the company increased its market participation by 5.7 percentage points to 31.9%.

“Our main focus is growth,” explains David Saettone (INTERVIEW), general manager of Pacífico Seguros, “and we are benefiting from all the investment taking place here. These investments need to be insured, so we are working with our reinsurance and technical staff to provide the services the economic world requires. Increases in employment and personal income are also generating demand for personal insurance products. Furthermore, by developing new products and services, we are ready for the opportunities the free trade agreement with the US will bring.”

Pacífico’s top classifications, including its recent Investment Grade rating from Fitch, permit the company to function internationally. Its alliance with AIG also serves to benefit both companies, with AIG’s know-how being incorporated into Pacífico and its international logistics network helping to manage the risk while Pacífico’s presence in Peru affords AIG access to the fertile ground of the country’s rapidly expanding insurance sector.

“Peru has some of the most liberal insurance legislation in the world,” continues Mr Saettone. “Now that Peruvian companies have generated the capacity to invest internationally, our business strategy has been to insure the interests of our clients abroad. There are important Peruvian conglomerates investing in many countries overseas and Pacífico is insuring their assets and operations.”

The company is convinced its success springs from its five core principles: long-term relationships, superior understanding, pricing and underwriting of customer risks, unrivalled claims service, extraordinary service and financial strength backed by Credicorp, Peru’s largest financial conglomerate, and AIG.

One of Pacífico’s considerable competitive advantages is its staff. Highly trained professionals who specialise not only in insurance but also in many other fields, and many with MBAs from US universities, are empowered to make decisions on the spot, removing the chain-of-command bureaucracy that hinders so many large companies.

“This is the main factor that differentiates us from the competition,” asserts Mr Saettone. “We believe it is very important that we are there when clients suffer a loss, and that we pay claims properly. If you have a car accident, we promise to be there within 15 minutes. We meet that standard in 97% of cases. The level of service you get from Pacífico is very hard to get from our competitors.”