trending Market Intelligence /marketintelligence/en/news-insights/trending/bKxxYXsDJE_1weCkSDv_kw2 content esgSubNav
In This List

S&P revises outlook on Seguros el Potosi to negative

Blog

Insurance Underwriting Transformed How Insurers Can Harness Probability of Default Models for Smarter Credit Decisions

Blog

The Worlds Largest Life Insurers, 2023

Blog

The World's Largest P&C Insurers, 2023

Blog

Essential IR Insights Newsletter Fall - 2023


S&P revises outlook on Seguros el Potosi to negative

S&P Global Ratings on Dec. 10 revised the outlook on Seguros El Potosi SA to negative from stable, while affirming the insurer's financial and credit strength ratings at "mxAA."

The outlook revision follows an announcement from Instituto del Fondo Nacional para el Consumo de los Trabajadores in late November that it would create its own payment protection fund for workers. The decision effectively removes the need for those workers to use Seguros El Potosi for life and unemployment insurance when borrowing from the institute.

These insurance lines accounted for about 40% of total premiums issued by Seguros El Potosi in recent quarters, and 30% of net income for full-year 2018. S&P believes the loss of this income will pressure its growth plans and could deteriorate business diversification if it does not replace the lost business or premiums.