Key Insights
Mexico's insurance market closed 2024 with a total of USD 41.6 billion in direct written premiums, marking a nominal year-on-year contraction of 5.2% when measured in US dollars. However, the picture shifts when converted to local currency: premiums totaled 867 billion Mexican pesos, reflecting robust nominal growth of 16.4%, thanks to exchange rate fluctuations and strong internal demand. Grupo Nacional Provincial maintained its leading position with a market share of 13.4%, followed by Metlife México and BBVA Seguros, while Quálitas stood out as a key player both in size and expansion.
Among the insurers, Banamex Seguros posted the strongest gain in market share, adding nearly 2 percentage points year-on-year, signaling successful commercial strategies and product positioning. Quálitas and HSBC Seguros also demonstrated solid growth. Detailed rankings by coverage and historical comparative data by insurer can be downloaded here.
The financial performance of the insurance sector also strengthened in 2024. Total profits reached 79.3 billion pesos, up 16.8% compared to the same quarter in 2023. This was driven by a remarkable 53.5% rise in profits from the non-life (damages) segment and higher returns from financial products, supported by elevated interest rates throughout the year.
At the same time, the sector faced challenges, including a 10.5% increase in net claims costs, with notable rises in claims for life insurance (12%), medical expenses (11.5%), and motor insurance (9%). Technical results deteriorated, with technical profit dropping by 121.2%, primarily due to a significant 44.7 billion peso jump in claims.
Despite pressures on claims and technical profitability, the market's expansion, strong premium growth in pesos, and favorable financial yields provided a positive balance for the year. Looking forward, the sector's resilience appears underpinned by growing demand in key segments and continued high interest rates that support investment returns.
Market Overview
By the end of 2024, Mexico's insurance market generated USD 41.6 billion in direct written premiums, representing a decline of 5.2% from the previous year's USD 43.9 billion. However, measured in Mexican pesos, the market expanded strongly, with total direct written premiums climbing from 745.2 billion pesos in 2023 to 867.0 billion pesos in 2024, marking a nominal increase of 16.4%. This apparent discrepancy is largely attributable to the peso's appreciation against the US dollar over the year.
Grupo Nacional Provincial, S.A.B., maintained its leadership in the Mexican insurance market with a 13.4% market share. Metlife México followed with 9.7%, while BBVA Seguros México held 8.9%. Quálitas, specializing in motor insurance, captured 7.6%, and AXA Seguros secured 7.1% of the market. Notably, Banamex Seguros experienced the highest market share growth, rising by 1.95 percentage points, indicating effective expansion strategies. Quálitas also continued its upward trajectory with an increase of 0.85 points, as did HSBC Seguros, Aseguradora Patrimonial Vida, and Seguros Banorte, each posting solid gains.
In terms of premium breakdown, life insurance accounted for 375.9 billion pesos, while motor insurance contributed 193.9 billion pesos. Health insurance generated 149.6 billion pesos, fire insurance 29.2 billion pesos, and other segments combined reached 118.3 billion pesos. Automotive insurance stood out with a 26.3% year-on-year rise, reflecting both volume growth and price adjustments. Life insurance premiums grew by 19.8%, indicating a robust expansion of protection and savings products. The earthquake and volcanic eruption insurance segment expanded by 18.2%, and health insurance saw a 10.1% increase.
Conversely, some lines contracted. Agricultural and livestock insurance declined by 15%, aviation and marine insurance dropped by 5.7%, and transport insurance shrank by 2.2%. The fire and liability segments posted modest growth of 2.6% and 2.5%, respectively. Overall, the general insurance market posted a 16.4% nominal growth in local currency terms.
Taking a broader view of the total insurance market, including life, non-life, bonds, pensions, and health plans, premiums reached 927 billion pesos by the end of 2024, up 12.1% compared to the same quarter of 2023. Profitability also improved, with total profits rising by 11.4 billion pesos year-on-year, fueled by gains in financial product yields and a 53.5% surge in non-life segment profits.
Nonetheless, the market faced upward pressure on costs. The reserve for ongoing risks and active bonds increased by 31.1%, led by a sharp 40.3% rise in life insurance reserves. Net claims costs climbed by 10.5%, with claims up across life (12%), health (11.5%), and motor (9%) lines. As a result, technical profits fell sharply by 121.2%, driven by a 44.7 billion peso increase in claims.
Financial product revenues grew by 24.1%, benefiting from persistently high interest rates, which helped offset the rise in claims and the squeeze on technical profitability. Thus, while the sector faced challenges on the underwriting front, investment income provided a vital cushion, supporting overall profit growth.
In summary, Mexico's insurance market in 2024 displayed robust expansion in local currency terms and solid financial performance, despite facing higher claims and pressure on technical margins. The combination of growing premiums, particularly in life and motor lines, and strong investment returns underpinned a year of notable resilience and profitability for the industry.