Insurance Market in Mexico - Q1.2024 Rankings
As of the end of the first quarter of 2024, direct written premiums (excluding pensions and surety) reached 235.8 billion pesos, reflecting a 12.9% nominal year-on-year increase from 208.9 billion pesos in the same period of 2023.
Among the top insurers, Grupo Nacional Provincial leads with a market share of 12.49%, followed by Metlife México with 10.84%, BBVA Seguros México with 9.75%, Seguros Banorte with 7.80%, and AXA Seguros with 7.21%.
In terms of market share growth, Seguros Banorte experienced the highest annual increase at +2.21 market share points, followed by Citibanamex Seguros +1.55%, BBVA Seguros México with +1.32%, Quálitas with +1.26%, and Seguros Atlas with +0.43%. ?
The performance overview of the insurance market indicates that total direct written premiums amounted to 235.7 billion pesos in the first quarter of 2024. This total includes 101.5 billion pesos for life insurance, 49.2 billion pesos for motor insurance, 45.8 billion pesos for health insurance, 8.3 billion pesos for fire insurance, and 30.7 billion pesos for other categories.
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Annual changes in various insurance categories highlight mixed results. Personal accidents insurance saw an 18.2% increase, life insurance grew by 19.7%, and motor insurance experienced a significant 30.7% nominal rise. Health insurance premiums also increased by 13.4%. However, several categories faced declines, such as agricultural and livestock insurance with a 24.0% decrease, aviation and marine insurance with a 27.8% drop, and hurricane and other hydrometeorological risks insurance with a 25.9% reduction. Fire insurance saw a 7.1% decrease, maritime and transportation insurance declined by 11.9%, civil liability and professional risks insurance fell by 15.0%, and earthquake and volcanic eruption insurance experienced a 4.0% drop.? ??
The net profit increased by 3 billion pesos compared to the same quarter in 2023, driven by higher placements and returns on financial products. The increase in reserves for ongoing risks and active sureties grew by 18%, primarily due to a 35.8% rise in life insurance. The technical loss saw a recovery of 4.7%, with acquisition and claims costs collectively being 1.6% higher than the earned premium. Financial products grew by 15.8% as interest rates remained high, and acquisition costs rose by 5.8%, largely due to a 16% increase in additional compensations to agents. In the first quarter of 2024, life insurance placements grew contributing 5.7% to the sector's growth. Individual life insurance increased spurred by a 27.4% rise in savings component policies, while group life insurance grew due to the economic recovery of companies, the primary clients in this segment.
In the property and casualty segment, premiums increased driven by a strong demand in auto insurance, which was influenced by a 3% rise in car sales and higher premiums due to the cost of auto parts and claims. Conversely, non-auto property and casualty insurance declined with significant drops in catastrophic risks,? civil liability, fire and maritime and transportation. Accident and health insurance premiums increased despite a 3% decrease in the number of insured individuals. Medical expenses insurance saw a positive variation due to higher premium costs.
On the other hand, pension insurance derived from social security laws decreased, a trend that started in 2022 due to changes in mortality tables and high interest rates. Within the surety operations, administrative sureties were the main driver, growing by 3.7% as a result of the recovery in the construction sector.
Overall, the Mexican insurance market has shown resilience and growth in various areas, supported by economic recovery and higher interest rates, despite facing challenges in specific segments.