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Latin American P/C insurers see resilient profits as market softens
Fitch projects written premiums rising from $204.1 billion in 2023 to $245.1 billion in 2025, while noting Mexico faces a deteriorating trend tied to VAT recovery changes and lower short term yields.
Latin American non life insurers are moving into a softer underwriting cycle but are doing so with resilience, supported by positive margins across much of the region, lower claims frequency in key lines, conservative investment portfolios, and generally favorable reinsurance conditions for cedents, according to Insurance Journal.
Fitch Ratings maintained a neutral global outlook for the insurance sector, saying insurers remain resilient despite volatility, slower economic growth, persistent inflation, and higher sovereign yields. In the region, Brazil, Chile, Peru, and Uruguay keep neutral industry outlooks anchored by expectations for strong solvency and healthy operating profitability.
Mexico stands out with a deteriorating outlook, pressured by higher claims costs linked to regulatory changes affecting VAT recovery and by lower yields on short term sovereign instruments. Colombia’s outlook remains neutral, supported by robust capitalization, but political uncertainty tied to the electoral cycle is flagged as a factor that could affect investment returns and claims costs.
Premium growth remains favorable though it has moved past the sharp rebound from recent repricing, with aggregate written premiums rising to $232.2 billion in 2024 and $245.1 billion in 2025 from $204.1 billion in 2023. By 2025, Brazil, Mexico, and Chile lead by scale at $139.6 billion, $50.4 billion, and $17.8 billion, and Chile, Mexico, and Colombia posted growth of 15.7%, 12.0%, and 8.9%, respectively, while Brazil and Uruguay grew by under 2%. Insurance Journal also notes Brazil’s muted growth was influenced by a financial transactions tax on accumulation products, including unit linked savings insurance, and that excluding that line of business, growth would have been closer to 10%.