CONTACTS:
FOR IMMEDIATE RELEASE
AMSTERDAM - APRIL 13, 2022 02:15 PM (EDT)
AM Best is maintaining its negative outlook on Spain’s life insurance segment.
Premium levels for the segment rebounded in 2021, reflecting Spain’s economic recovery. However, this followed a double-digit decline in premiums in the previous year as a result of the COVID-19 pandemic and government-mandated lockdowns, and has demonstrated the vulnerability of the segment to a deterioration in economic conditions and consumer sentiment.
A new Best’s Market Segment Report, “Market Segment Outlook: Spain Life Insurance”, also notes that interest rates are expected gradually to increase to help combat the threat of rising inflation exacerbated by the Russia-Ukraine crisis. Gradually rising interest rates in the context of high inflation should mean that, while investment returns should improve over time as rates increase, higher inflation could also lead to lower premium growth and increased lapse risk.
Moderating these negatives are the segment’s sustained profitability, despite market volatility, and a shift to capital-light products supported by innovative technology-based solutions.
To access a complimentary copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=319080 .
AM Best is a global credit rating agency, news publisher and data analytics provider specialising in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.