Costa Rica's state-owned insurer, Instituto Nacional de Seguros (INS), reported an 85% collapse in first-half 2026 profits compared to the same period last year.
The sharp decline was driven by significant losses on key insurance policies and adverse foreign-exchange movements that eroded margins across the business.
The results highlight the vulnerability of the insurer's bottom line to currency volatility and underwriting shocks.
As the dominant player in the Costa Rican insurance market, INS's performance is a key barometer for the sector's health, and the steep profit drop suggests broader challenges in maintaining profitability amid macroeconomic headwinds.
The company's struggles come as investors monitor the impact of rising interest rates and currency fluctuations on financial institutions across Latin America.
The dual pressure from policy losses and exchange-rate effects underscores the operational risks facing state-backed insurers in emerging markets.