Best’s Market Segment Report: AM Best Maintains Stable Outlook on Guatemala’s Insurance Industry

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MEXICO CITY - JULY 10, 2026 08:57 AM (EDT)
AM Best is maintaining its stable outlook on Guatemala’s insurance industry, citing market expansion supported by economic growth and controlled inflation.

The new Best’s Market Segment Report, “Market Segment Outlook: Guatemala Insurance,” states that Guatemala is forecast to see GDP growth moderate in 2026, though still supported by private consumption and remittance inflows. However, the outlook is subject to heightened uncertainty given potential impact of the Middle East conflict, continued global trade tensions and more-restrictive U.S. immigration policies, which could weigh on exports and slow the growth of remittance inflows. In addition, inflation is projected to rise but should remain below the Bank of Guatemala’s target range of 3-5%. At the same time, the insurance market’s positive premium growth has been consistent in the last five years, and technical results reflect refined pricing and prudent expense management.

“Guatemala’s insurance industry in 2025 maintained premium sufficiency, showing stability in claims and acquisition costs, demonstrating the market’s ability to navigate the different cycles in reinsurance,” said Inger Rodriguez, senior financial analyst, AM Best. “The industry remains well protected through comprehensive reinsurance programs placed among reinsurers with high levels of security.”

The report notes that AM Best expects the Guatemalan insurance market to continue growing within the 8-10% range in 2026, with risk-adjusted capitalization of rated entities standing at the strongest level.

Other takeaways from the report include:

• The market remains highly competitive, with nearly 50% of gross premiums concentrated with the top three insurers.


• Investment performance remains positive but limited by the conservative nature of the market portfolios, characterized by prudent asset-liability management and short tenor.


• Rated insurance companies have made efforts to exceed enterprise risk management regulatory requirements, primarily through IFRS 17 and Solvency II. Although IFRS 17 implementation is not mandatory, insurers that belong to large financial groups domiciled in countries where the change has been made are adopting the standard.


• Low catastrophe losses in recent years and increased interest from global reinsurers drive the continued soft-market conditions; however, the potential effects of El Niño on agricultural production and flood prone areas bears watching in the second half of 2026.

To access the full copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=366381. 

To view current Best’s Market Segment Outlooks, please visit http://www.ambest.com/ratings/RatingOutlook.asp.