Premiums ignore the recession and rise by 7%
Mexico's insurance industry association (AMIS) says premiums will buck the recession and grow 7% this year, Dow Jones reports.
"We originally had expected to see very little growth in 2009, about 1.5% or 2% in real terms. Based on the data we have seen, I would say we are going to have growth of 6.5%-7%," Juan Ignacio Gil Anton, AMIS president said.
November and December, when many businesses renew their policies, will be key months to gauge the industry's growth prospects for 2010.
"I think 2010 is going to be a better year for auto insurance. I think it will also be a good year for property and casualty [insurance] because [business] investment will recover and there are big plans for infrastructure projects," he said.
Premiums rise
The industry reported direct premiums of 173.28 billion pesos ($13.3bn) during the first nine months of 2009, an increase of 8.1% from the year-ago period, according to regulator CNSF.
January-September premiums from property and casualty policies rose 45.3%, to MXN39.44bn, largely due to state-run Petroleos Mexicanos. Motor insurance premiums fell 8.7%, to MXN33.43bn, as the recession slashes new vehicle sales.
The insurance industry made an operating profit of MXN3.85bn and net profit of MXN13.19bn in the first nine months of the year.
The sector's combined ratio rose to 99.4% at the end of September, from 97.8% in June and 98% in September 2008.
