...Growth Trend Softens Fitch Ratings expects Nicaragua's premium growth will remain adequate, due in part to strong increases in premiums from life, health and accidents, auto and surety bond lines. Nevertheless, the strong growth registered in previous years has shown gradual softening, mainly due to a slight decrease in premiums from fire and allied lines. Good prospects, however, are still likely for the non-life and surety lines, given that government officials are strongly supporting large investment projects in various fields, including multiple energy generation projects. Profitable Performance Profitability is expected to remain sound, with a combined ratio below 100%, mainly due to stable efficiency and loss ratios. These are aided by adequate growth in net premiums written (NPW) and by stable management and acquisition expense ratios. Loss ratios have remained relatively low, due to a low-density population and lower crime rates. However, the country is highly exposed to natural...
