Hurricane Otis’ Impact on Mexico Insurance Industry Expected to Be ‘Controlled’: Fitch
Fitch Ratings expects Hurricane Otis’ effects on Mexico’s insurance industry to be controlled and within its current ratings expectations, the agency said in a statement on Wednesday.
Otis, which devastated the tourist beach resort of Acapulco and surrounding communities as a Category 5 hurricane on Oct. 25, caused damages with resulting economic losses worth upwards of $16 billion, Fitch said.
“The (insurance) sector is well capitalized and regulated, with low market penetration and a high cession rate that reduces profits and capital pressures for local private insurers, therefore it will withstand insured losses due to the storm,” Fitch added.
(Reporting by Raul Cortes Fernandez; writing by Brendan O’Boyle; editing by Sandra Maler)
Photograph: Damage is seen at a yacht club in the aftermath of Hurricane Otis in Acapulco, Mexico, on Saturday, Oct. 28, 2023. (AP Photo/Felix Marquez)
Related: