Amis sees insurance sector growing 7-8% in 2005

Mexico's insurance industry will likely grow 7-8% in real terms in this year, down from about 11% last year when insurers saw a big expansion in the sale of personal lines, according to industry association Amis. "We think this year could be another good year. We could grow 7-8% provided exogenous factors don't come into play," Amis CEO Recaredo Arias told BNamericas. Direct premiums were up 11% last year, reaching 138bn pesos (US$12.5bn), according to insurance regulator CNSF. "Last year [life] insurance with a high savings component grew a lot," Arias said. Amis is set to release its 2004 statistics for the sector in early March. The top performing segments were life, which grew 19% to 53.8bn pesos, and accidents and illness which increased 10% to 17.6bn pesos. P&C premiums excluding auto were up 5% at 28bn pesos last year, while auto premiums were stagnant at 33.6bn pesos. "This year auto should grow more towards the second half. P&C [less auto] should grow about the same [as last year]," according to Arias. "Again, growth is going to come mainly from life and accidents and illness." Mexico's insurance industry is dominated by five companies, which had the following market share in 2004: Grupo Nacional Provincial (17%); Seguros Comercial America (15%); Metlife Mexico (15%); Seguros Inbursa (7%); and Seguros Banamex (6%).