Insurance in Central America: Outlook for 2018

Projections are that this year growth of the Central American insurance sector will be driven by activities in the markets of Costa Rica and Guatemala.

Monday, March 5, 2018

From the report "Prospects 2018: Insurance Sector in Central America" by Fitch Ratings:

Stable Rating Perspective: The rating outlook for the Central American insurance sector is stable for 2018, given that most of the rated companies maintain a stable outlook on an individual basis. Fitch Ratings believes that the sector shows stable fundamentals, as a result of good profitability levels and high liquidity and capitalization indicators in all countries, which it expects to continue to be reflected in solid balance sheets in companies.   

Stable Outlook for the Sector: The sector's outlook is stable, given Fitch's expectation that all countries will maintain a solid performance in 2018. The agency believes that the sector remains well positioned to face the challenges that the economic and political environment could exert, such as pressures on the sovereign debt of El Salvador, a greater fiscal deficit in Costa Rica, and the recent decision of the United States to renew the Temporary Protection Status. The latter could have an impact in the medium term on a smaller volume of remittances received in the region, which would mainly affect the countries in which they represent a relevant proportion of the gross domestic product (GDP).   

Read full report (in Spanish).

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More on this topic

Expectations for the Insurance Market in 2017

December 2016

According to Fitch Ratings growth in the insurance sector in Central America in 2017 will be driven by the markets of Costa Rica and Nicaragua.

From the report "Outlook 2017: Insurance in Central America"  by Fitch Ratings:

Rating Outlook Stable: Fitch Ratings´outlook for insurance ratings in Central America is stable. The agency believes that there is a limited probability of rating adjustments in the next 12 to 18 months, which could lead to significant changes in the risk profile or the weighted support in some cases.   

Insurance in Central America: 2015 Outlook

January 2015

Fitch Ratings expects moderate growth in premiums in Costa Rica, increased interest in personal insurance in Guatemala, and stable performance in Nicaragua and Honduras.

From the report "Outlook 2015: Central American Insurance Sector":

Costa Rica:

Moderate growth in premiums

Insurance in Central America: 2014 Perspectives

January 2014

Fitch Ratings predicts good performance for the sector, but warns of risks such as intense competition in rates, exposure due to natural disasters, and inflation.  

Fitch Ratings believes that the insurance industry will perform well in 2014, however, it does not rule the possibility that some factors such as strong competition in rates, exposure to natural disasters, inflation and devaluation of currencies in some countries will continue to exert pressures.

Outlook for Central American Insurance Industry in 2013

January 2013

Fitch estimates that premiums in the region should grow measuredly, with the greatest dynamism seen in Costa Rica, the second insurance market in the region.

A statement from Fitch Ratings reads:

Fitch Publishes 2013 Prospects for the Insurance Sector in Central America.