Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Best’s Market Segment Report: AM Best Maintains Stable Outlook on Panama’s Insurance Industry

AM Best is maintaining its stable outlook on Panama’s insurance industry, citing its growth and consistently profitable underwriting results, which are expected to continue as companies navigate challenges due to the adoption of IFRS 17.

In its Best’s Market Segment Report, “Market Segment Outlook: Panama Insurance,” AM Best states that Panama’s insurance industry expanded by nearly 10% in 2024, following growth of 11% in 2023, based on gross premiums written (GPW). Panama’s insurance industry remains concentrated, with five companies accounting for more than 75% of the country’s market share. With a combined ratio below 100, underwriting results remain healthy, consistent with the segment’s historically sound performance; nevertheless, there are headwinds in acquisition costs stemming from reinsurance market hardening.

“Strict curbs on operating expenses and claims continue to boost underwriting performance, with the industry’s overall profitability still being supported by insurers’ historically conservative investment strategies,” said Salvador Smith, associate director, AM Best. “Furthermore, sound capital positions will help the segment withstand current economic pressures.”

According to the report, Panama’s economic slowdown in recent years has been underpinned by ongoing challenges in its fiscal regime, pressured public finances owing to the government’s significant dependence on Panama Canal revenue and material pension system imbalances due to depleting reserves. Disruptions in global commercial trade, coupled with climate change shocks that impacted the Panama Canal, ongoing turmoil in the mining industry and other potential external shocks, are headwinds for the region’s shipping and logistics hub. Given the persistent challenges the industry faces, AM Best will continue to monitor carriers’ performance.

To access the full copy of this report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=352477.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

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