Key Insights
The Mexican insurance market exhibited solid growth by the end of September 2024, with direct written premiums totaling $33,815.2 million USD, representing a nominal year-on-year increase of 5.8% compared to the same period in 2023. This growth underscores the resilience of the market amid economic fluctuations and the increasing demand for insurance products.
Grupo Nacional Provincial retained its leadership in the market with a 13% share of direct written premiums, followed by MetLife México and BBVA Seguros México, which held 9.5% and 9.4%, respectively. These top players continue to shape the competitive landscape through consistent performance and strategic positioning.
Citibanamex Seguros demonstrated the highest annual market share growth at 2.44%, indicating a successful year driven by targeted strategies and a focus on expanding its customer base. HSBC Seguros and Quálitas also posted notable growth, showcasing strong performance in specific segments.
The life insurance segment contributed the largest share of premiums in the domestic market, totaling 282,763 million pesos, while motor insurance and health insurance followed with 140,536 million pesos and 111,597 million pesos, respectively. Life insurance also experienced a significant year-on-year growth of 22.4% in nominal terms, reflecting increased consumer awareness and demand.
Net income for the sector rose by 11.7 billion pesos compared to the third quarter of 2023, fueled by higher placements, increased financial product returns, and a remarkable 95.6% surge in the profits from the property and casualty (P&C) segment. This growth highlights the sector's profitability and efficiency improvements.
Market Overview
The Mexican insurance market recorded direct written premiums of $33,815.2 million USD by September 2024, reflecting a nominal growth of 5.8% compared to $31,973.9 million USD in the previous year. This robust performance aligns with the 17.2% year-on-year increase in total direct written premiums measured in Mexican pesos, underscoring a favorable exchange rate environment and market demand.
Grupo Nacional Provincial remained the market leader, securing a 13% share of direct written premiums, supported by its diversified portfolio and strong customer base. MetLife México and BBVA Seguros México closely followed, with market shares of 9.5% and 9.4%, respectively, maintaining their positions as dominant players. AXA Seguros and Quálitas rounded out the top five, with Quálitas posting a notable 0.75% growth in market share over the year.
In terms of market performance, the total direct written premiums in Mexican pesos reached 652,634 million by September 2024. Life insurance accounted for the largest share at 282,763 million pesos, followed by motor insurance at 140,536 million pesos and health insurance at 111,597 million pesos. Other segments, such as fire insurance and various smaller categories, contributed significantly, reflecting the broad scope of the market. Life insurance experienced a nominal year-on-year growth of 22.4%, while motor insurance surged by 28.3%, driven by higher vehicle sales and insurance penetration.
The year also saw variations in the performance of different insurance segments. Notable growth rates were recorded in personal accident insurance (10.3%), medical expenses insurance (10.6%), and hurricane and other hydrometeorological risks (16.8%). Conversely, agricultural and animal insurance, aviation and maritime insurance, and miscellaneous lines experienced declines, with year-on-year decreases of 7.5%, 10.6%, and 5.7%, respectively.
Net income for the insurance sector increased by 11.7 billion pesos, bolstered by higher placement levels, increased returns on financial products, and a remarkable 95.6% rise in P&C profits. Life insurance reserves saw a 71.2% increase, significantly contributing to a 47.1% overall growth in reserves for ongoing risks and active sureties. However, the net claims cost rose by 10.3%, driven by an 11.9% increase in medical claims, a 10% rise in auto claims, and a 9.9% growth in life insurance claims, reflecting both higher demand and the cost dynamics of the market.
Key regulatory updates also shaped the landscape. The revision of indices for claims and administrative expenses impacted the calculation of active surety reserves and dynamic solvency test scenarios. Additionally, changes to Chapter 17.2 removed the 30% credit limit cap for maximum retention in mortgage credit insurance, enhancing underwriting flexibility. New provisions for liability insurance for agents mandate the submission of policies within specific timelines to ensure compliance and operational transparency.
The Mexican insurance market continues to demonstrate resilience and growth, driven by innovative product offerings, strong financial performance, and a robust regulatory framework. This dynamic environment positions the sector for sustained expansion, attracting new players and reinforcing the competitive edge of established insurers.