Hurricane Otis’ Impression on Mexico Insurance coverage Business Anticipated to Be ‘Managed’: Fitc

Fitch Rankings expects Hurricane Otis’ results on Mexico’s insurance coverage business to be managed and inside its present rankings expectations, the company stated in a press release on Wednesday.

“Fitch Rankings expects that the credit score affect will likely be negligible on the Mexican insurance coverage business’s profitability and that it’s going to not have an effect on the capital of particular person reinsurers,” the company stated.

Otis, which devastated the vacationer seaside resort of Acapulco and surrounding communities as a Class 5 hurricane on Oct. 25, brought about damages with ensuing financial losses value upwards of $16 billion, Fitch stated.

“The (insurance coverage) sector is properly capitalized and controlled, with low market penetration and a excessive cession price that reduces income and capital pressures for native non-public insurers, due to this fact it’ll stand up to insured losses as a result of storm,” Fitch added.

(Reporting by Raul Cortes Fernandez; writing by Brendan O’Boyle; modifying by Sandra Maler)

{Photograph}: Injury is seen at a yacht membership within the aftermath of Hurricane Otis in Acapulco, Mexico, on Saturday, Oct. 28, 2023. (AP Photograph/Felix Marquez)

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Subjects
Catastrophe
Natural Disasters
Hurricane
Market
Mexico