AM Best: negative outlook for the Spanish non-life insurance market

AM Best has maintained its negative outlook for the Spanish non-life insurance market.

The rating agency noted that the sector is facing several factors that are likely to weigh heavily on insurers' profitability, including economic uncertainties, inflationary pressures, financial market volatility and unpredictable weather conditions.

AM Best confirmed, however, that the non-life sector is capable of absorbing a certain degree of economic volatility, as Spanish insurers' risk-adjusted capitalization is one of the strongest in Europe.