Latest news with #SalvadorSmith
Business Wire
9 hours ago
- Business
- Business Wire
Best's Commentary: Initial Loss Estimates for Mexican Insurers from Hurricane Erick Expected to Be Well Below 2023 Hurricane Otis
MEXICO CITY--(BUSINESS WIRE)--Insured losses from last week's Category 4 hurricane that made landfall along Mexico's Pacific coast are expected to be contained with parametric insurance contracts unlikely to be triggered, according to a new report from AM Best. However, the current reinsurance market cycle could be further hardened because of Hurricane Erick and ongoing rapid development of tropical storms into severe hurricanes triggered by rising ocean temperatures. AM Best expects that for most insurers with exposure to the Oaxaca and Guerrero states struck by Hurricane Erick, the primary impacts will be mainly for business interruption losses from prolonged power outages, flooding and food shortages. Lesser material losses are expected for commercial and residential infrastructure, as well as high-value hotels and resorts. The hurricane had reached Category 4 status before tapering off to a Category 3 storm at landfall. In AM Best's view, estimated insurance industry losses for Hurricane Erick will fall well below the USD 1.97 billion in insured losses from Hurricane Otis in 2023. However, storm damage from Hurricane Erick continues to be assessed as it was the strongest hurricane ever recorded along Mexico's Pacific coast this early in hurricane season. 'Mexico's insurance industry is strongly capitalized and has sound levels of catastrophic provisions aimed at mitigating the effect,' said Salvador Smith associate director, AM Best. 'We'll continue to monitor the financial impact of Hurricane Erick on rated companies, as well as credit risk with counterparts and liquidity among rated insurers.' To access the full copy of the Best's Commentary, 'Hurricane Erick Makes Landfall in Mexico but Insured Loss Estimates Expected Well Below 2023 Otis,' please visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
Yahoo
27-03-2025
- Business
- Yahoo
Best's Market Segment Report: AM Best Maintains Stable Outlook on Panama's Insurance Industry
MEXICO CITY, March 27, 2025--(BUSINESS WIRE)--AM Best is maintaining its stable outlook on Panama's insurance industry, citing its growth and consistently profitable underwriting results, which are expected to continue as companies navigate challenges due to the adoption of IFRS 17. In its Best's Market Segment Report, "Market Segment Outlook: Panama Insurance," AM Best states that Panama's insurance industry expanded by nearly 10% in 2024, following growth of 11% in 2023, based on gross premiums written (GPW). Panama's insurance industry remains concentrated, with five companies accounting for more than 75% of the country's market share. With a combined ratio below 100, underwriting results remain healthy, consistent with the segment's historically sound performance; nevertheless, there are headwinds in acquisition costs stemming from reinsurance market hardening. "Strict curbs on operating expenses and claims continue to boost underwriting performance, with the industry's overall profitability still being supported by insurers' historically conservative investment strategies," said Salvador Smith, associate director, AM Best. "Furthermore, sound capital positions will help the segment withstand current economic pressures." According to the report, Panama's economic slowdown in recent years has been underpinned by ongoing challenges in its fiscal regime, pressured public finances owing to the government's significant dependence on Panama Canal revenue and material pension system imbalances due to depleting reserves. Disruptions in global commercial trade, coupled with climate change shocks that impacted the Panama Canal, ongoing turmoil in the mining industry and other potential external shocks, are headwinds for the region's shipping and logistics hub. Given the persistent challenges the industry faces, AM Best will continue to monitor carriers' performance. To access the full copy of this report, please visit AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Salvador Smith, CQFAssociate Director, Analytics +52 55 9085 7506 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Sign in to access your portfolio
Yahoo
27-03-2025
- Business
- Yahoo
Best's Market Segment Report: AM Best Maintains Stable Outlook on Panama's Insurance Industry
MEXICO CITY, March 27, 2025--(BUSINESS WIRE)--AM Best is maintaining its stable outlook on Panama's insurance industry, citing its growth and consistently profitable underwriting results, which are expected to continue as companies navigate challenges due to the adoption of IFRS 17. In its Best's Market Segment Report, "Market Segment Outlook: Panama Insurance," AM Best states that Panama's insurance industry expanded by nearly 10% in 2024, following growth of 11% in 2023, based on gross premiums written (GPW). Panama's insurance industry remains concentrated, with five companies accounting for more than 75% of the country's market share. With a combined ratio below 100, underwriting results remain healthy, consistent with the segment's historically sound performance; nevertheless, there are headwinds in acquisition costs stemming from reinsurance market hardening. "Strict curbs on operating expenses and claims continue to boost underwriting performance, with the industry's overall profitability still being supported by insurers' historically conservative investment strategies," said Salvador Smith, associate director, AM Best. "Furthermore, sound capital positions will help the segment withstand current economic pressures." According to the report, Panama's economic slowdown in recent years has been underpinned by ongoing challenges in its fiscal regime, pressured public finances owing to the government's significant dependence on Panama Canal revenue and material pension system imbalances due to depleting reserves. Disruptions in global commercial trade, coupled with climate change shocks that impacted the Panama Canal, ongoing turmoil in the mining industry and other potential external shocks, are headwinds for the region's shipping and logistics hub. Given the persistent challenges the industry faces, AM Best will continue to monitor carriers' performance. To access the full copy of this report, please visit AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Salvador Smith, CQFAssociate Director, Analytics +52 55 9085 7506 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Sign in to access your portfolio
Yahoo
04-02-2025
- Business
- Yahoo
Best's Market Segment Report: AM Best Maintains Negative Outlook on Argentina's Insurance Industry
MEXICO CITY, February 04, 2025--(BUSINESS WIRE)--AM Best is maintaining its negative outlook on Argentina's insurance industry, citing marginal industry growth, volatility in bottom-line results and economic challenges. In its Best's Market Segment Report, "Market Segment Outlook: Argentina Insurance," AM Best states that inflation has pressurized growth of Argentina's insurance industry. Although the industry has grown since 2021, the growth totaled 0.5% as of year-end 2023. The industry recorded a combined ratio below 100 in 2023, reflecting consistent premium sufficiency levels, driven mainly by increasingly expensive auto policies, which offset claims and operating expenses. However, results have been adjusted for inflation since 2020 under RECPAM (Resultado por Exposición al Cambio en el Poder Adquisitivo de la Moneda) reporting, leading to some bottom-line distortion as gains or losses owing to changes in the currency's purchasing power had to be identified separately. "AM Best expects distortions to gradually diminish as Argentina's macroeconomic conditions improve and negative real interest rates and foreign exchange volatility gradually lower pressure on float, despite the industry's large exposures to government-backed obligations, which are predominantly of non-investment grade credit quality," said Salvador Smith, associate director, AM Best. Macroeconomic conditions have begun to improve, according to the report, and have produced tailwinds for the insurance industry, but Argentina's market remains complex and challenging as insurance companies continually must adjust prices and implement strict expense containment strategies to maintain policy coverages and limit business contraction, as well as address limitations due to tight regulatory requirements. To access the full copy of this report, please visit To view current Best's Market Segment Outlooks, please visit AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED. View source version on Contacts Salvador Smith Associate Director +52 55 9085 7506 Christopher Sharkey Associate Director, Public Relations +1 908 882 2310 Al Slavin Senior Public Relations Specialist +1 908 882 2318 Sign in to access your portfolio
