Global insurance sales up 2.7 pct in 2010, led by China - Study

The global insurance industry notched up a 2.7 percent sales increase last year, with strong emerging market growth outweighing a downturn in the United States, and the sector looks set for steady growth in 2011, reinsurer Swiss Re said.

Total worldwide premiums for the year rose to $4,340 billion, Swiss Re said on Tuesday, driven by China and Latin America, where sales grew by 26.2 percent and 8.2 percent respectively.

That more than offset a 0.2 percent downturn in the U.S., the world's biggest insurance market, where insurance sales have suffered because of a sluggish economy.

Weak economic conditions also took their toll on the UK, the world's third biggest insurance market, where sales fell 2.7 percent.

Insurers' capital and solvency levels strengthened overall during 2010, although low interest rates weighed on profitability, Swiss Re added.

The global insurance industry is expected to grow at a faster pace this year, helped by a continued economic recovery.

Emerging markets look set to keep outperforming the developed world, with China, currently the world's sixth-biggest insurance market, on course to rise to second position within ten years, Swiss re said. (Reporting by Myles Neligan; Editing by Elaine Hardcastle)