hasdeveloped an expansion plan targeting the northern Mexican state of Nuevo León,which already represents 54% of its client portfolio, El Financiero reported, citing comments from CEO Marcelo Hernández.
The reasonfor the firm's focus on Nuevo León is that the state, and specifically the state'scapital Monterrey, is home to many large Mexican companies, which require coveragein Mexico and abroad, Hernández said.
"Weare the biggest insurance conglomerate in the world and one of our specialties islarge industry risk, and the mecca of industry [in Mexico] is here," he wasquoted as saying.
Givenits global reach, AIG Seguros can manage a client's portfolio from Nuevo León andoffer insurance policies in Europe, Latin America, Asia and Oceania, he said.
However,an important risk for the industry is Mexico's sluggish economic growth, given thatthe insurance sector normally grows at around double the economy's growth rate,he said, adding the sector grew 7.4% in 2015.
Low oilprices have had a negative impact on investment in Mexico, which in turn has stalledvarious energy projects and dampened demand for insurance, he noted. Even so, theoutlook for the Mexican economy is positive compared to other countries in the regionsuch as Brazil, Colombia or Argentina, Hernández said.