Page 295 - XXV Asamblea General Miami 2012

Surety bonds in Mexico: Premiums and annual growth

600,000 05-06 06-07 07-08 08-09 09-10 10-11 11-12* 25% Surety Premiums
500,000 20%
400,000 11% 11% 7% -4% 13% 19% 15% Growth in USD
300,000 11% 11% 5% 6% 10%
200,000 18% 6% 5% Growth in Local
100,000 348,491 0% Currency
'000 USD -5%
- 2005 -10%
0.4% -15%
-20%
-21% -25%
385,190 427,163 447,171 353,574 399,223 475,896 477,809

2006 2007 2008 2009 2010 2011 2012*

*Figures at December 2012. / Fidelity bonds are not included.

What was the quarterly trend? The different indicators and the underwriting results showed a
small downward trend, although with stability over time. Both the net and the gross loss ratios
increased slightly in 2011.

Compared to the rest of the lines, in the Mexican market surety premiums had a 2% share,
approximately, showing a downward trend. That is, other life and non-life lines were expanding
more than surety bonds. And this is illustrated on the following graph showing premium
growth; when the crisis broke out, surety bonds decreased much more than the rest of the lines
in US dollars. In 2010, as against 2009, surety bonds expanded more than the other lines, as in
2011 against 2012, but they dropped again, and from 2011 to 2012 they recorded almost zero
growth.

Surety bonds in Mexico: Annual premium growth compared to the premiums of all lines

25% 17% 16% 5% 6% 13% 19%
20% 11% 11% 10% 16%
15% -7% 5%
10% 05-06 06-07 09-10 0,4%
5% -21%
0% 10-11 11-12*
-5% 07-08 08-09
-10%
-15%
-20%
-25%

Surety Growth Premium Growth, all lines

* Figures at December 2012.
Fidelity bonds are not included.

As a percentage of public expenditure, surety premiums fell, they did not recover to precrisis
levels. As a percentage of GDP they remained rather stable.

293XXV Asamblea General / XXV General Assembly