Link to Fitch Ratings' Report: 2015 Outlook: Mexican Insurance Sector
(Challenging Environment; Significant Changes)
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=847168
Adequate performance in the short and medium term augur for a stable outlook for the Mexican insurance sector this year, according to Fitch Ratings in a new report.
Fitch expects growth of the Mexican insurance and surety sectors to be around 6% and 8%, respectively, in nominal terms. In addition, Fitch expects growth in the economy as a whole of 3.6% in 2015.
That said, challenges persist for the sector. The combined ratio of the whole insurance industry could increase this year due to pricing flexibility, high-impact catastrophic events, costs associated with the implementation of the new regulatory framework and, to a lesser extent, remaining claims from hurricane Odile.
Fitch would review the sector's outlook if capitalization levels grow. Fitch will also monitor increases in operational costs and changes in economic balance sheets related to the implementation of the new regulatory framework.
This publication is based on public information disclosed by National Insurance and Surety Commission and also from data owned by the rating agency regarding the sector; the inform analyzes the perspectives regarding growth, profitability, capitalization, given ratings and regulatory changes.
'2015 Outlook: Mexican Insurance Sector' is available at 'www.fitchratings.com' and 'www.fitchratings.mx' or by clicking on the above link.
Additional information is available at 'www.fitchratings.com'.
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