APRIL 21, 2020 01:38 PM (EDT)
Best’s Market Segment Report: AM Best Maintains Negative Outlook on Argentina’s Insurance Industry Amid COVID-19 Pandemic
|Salvador Smith |
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Manager, Public Relations
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Director, Public Relations
+1 908 439 2200, ext. 5644
FOR IMMEDIATE RELEASE
MEXICO CITY - APRIL 21, 2020 01:38 PM (EDT)
AM Best has maintained its negative market segment outlook on Argentina’s insurance industry as COVID-19 pandemic adds to the country’s existing challenges.
In a Best’s Market Segment Report, AM Best states that it expects the protracted recession to challenge insurers’ premium growth, and the impact of the COVID-19 pandemic to vary by business line. Argentina’s non-life market, which accounts for the bulk of gross premiums, is expected to face declining growth prospects and rising costs for automobile spare parts, driven by disrupted supply chains and continued currency devaluation.
Life insurance companies continue to face declining bond market values and asset-liability mismatches owing to debt tenor extensions and negative yields. Solvency and liquidity issues for the life segment could be exacerbated despite an initiative placing higher tax deductibles on premiums to promote policyholder savings, while increasing the industry’s organic growth and investment base.
The COVID-19 pandemic will test the enterprise risk management capabilities of insurers operating in Argentina. AM Best will continue to monitor the situation and provide updates as warranted.
To access the full copy of the Argentina market segment report in English and Spanish, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=296403 .
To view current Best’s Market Segment Outlooks, please visit http://www.ambest.com/ratings/RatingOutlook.asp .
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.