BMI's Executive Summary for the Mexico Insurance Report

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This report differs from its predecessors in that it includes BMI's Insurance Business Environment Rating (IBER). The rating brings together a number of pieces of relevant quantitative data, together with BMI's Country Risk Rating (CRR). It is now much easier to consider the business environment for the insurance sector in any one country relative to the business environment for other industries in that country that are surveyed by BMI, and the business environment for the insurance sector in other countries.

Mexico's IBER is 64.0. This ranks it third in the region behind Brazil (66.4) and the Bahamas (65.6). Although the life and non-life markets are projected to have solid growth, the IBER is held back by the low levels of penetration in both segments. It is also held back by the legal framework and bureaucracy in Mexico. One positive IBER driver is Mexico's high degree of openness to foreign investment.

Over the forecast period we anticipate that non-life premiums will grow by 8% annually in local currency terms and by 7% in US dollar terms. Life premiums are expected to increase by 13% annually in local currency terms and by 11% in US dollar terms. Mexico has a comparatively high level of GDP per capita, but this is not expected to rise sharply in the medium term.

The competitive landscape in the non-life and the life segment is fragmented. The openness of the market and the shake up of the financial industry following the currency crisis has made market entry easier than other countries in the region. However, the market is large enough to enable companies to maintain viable operations through specialising in niches where they hold a competitive advantage. Because of the number of Mexican immigrants in the US, we believe that the life sector in Mexico is not as strong as the non-life, with life insurance effectively coming under competition from the US domestic market.

Consequently there is a greater likelihood of lower commitment to the life sector from foreign firms. The economy is undergoing significant economic reform, which should strengthen its insurance business environment, which is already developed by regional standards. However, there is uncertainty as to the government's ability to implement the reform agenda, and the economy is under inflationary pressure. However, the market is open to foreign investment and has a strong foreign presence, especially in life insurance. There is strong anticipated growth in the life and non-life sectors over the next five years.

Contents of the Mexico Insurance Report

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Chapter 1 - The Sector At A Glance

Table: Overview millions of currency specified

Key Features Of This Report & Likely Future Changes

Chapter 2 - Latest News

Recent Developments

Chapter 3 - Evolution Since The Mid-1990s

Table: Evolution Of The Insurance Sector (in millions of currency specified)

Evolution

Chapter 4 - Projections And Forecasts

Table: BMI Projections (in millions of currency specified)

Projections And Drivers Of Growth

Chapter 5 - Macroeconomic Outlook

Table: Economic Activity Indicators

Chapter 6 - Country Update

Political Risk Caldern Wins, But

Economic Risk Banxico On Hold

Business Environment Still Bound Up In Red Tape

Table: Non-Life Segment Rankings of Markets

Table: Presence Of Cross-Border Insurers Non-Life

Table: Selected Local Non-Life Insurers

Table: Life Segment Rankings of Markets

Table: Presence Of Cross-Border Insurers Life

Table: Selected Local Life Insurers

Whos who in the Latin American region?

Chapter 7 - Regional Context

Table: Regional Context - Premiums

Table: Regional Context Total Premiums

Chapter 8 - Methodology And Objectives

Introduction

Background

Forecasts

Regional Context

Chapter 9 - Appendix

Table: Latest Estimates / Actual Figures For 2005

Table: Latest Estimates For 2010

Table: Latest Estimates For 2005-2010

Competitive Landscape for Latin America Insurance Reports: Sample       of Companies Ranked

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A cross-border overview of key players and their insurance market share across Latin America. Tables and graphs show country presence of multinationals across the region. Comparative company analyses and rankings by premium income (life and non-life). Company SWOTS for leading life and non-life insurers, covering network of offices, presence of foreign stakeholders, strategic relationships, joint ventures; portfolio of clients; diversity of product range; profit growth, investment strategy and risk exposure.

Network of Insurance Sources

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BMI's Latin American Insurance Reports are based on an extensive network of multilateral organisations, government departments, insurance industry associations, chambers of commerce and company reports. Information sources include:

Read about our other Insurance Reports