AM Best has maintained its stable outlook on Spain’s life insurance segment, noting that the positive interest rate environment over the last two years has been one of the primary drivers of the segment’s recovery.

In its new Best’s Market Segment Report, “Market Segment Outlook: Spain Life Insurance”, AM Best states that higher yields have considerably improved the attractiveness of traditional savings products whose premiums increased by 26.8% in 2025. At the same time, insurers benefited from improved reinvestment rates that supported investment margins and overall earnings.

Juan Villaescusa, senior financial analyst at AM Best and one of the authors of the outlook, said, “AM Best expects the favourable interest rate environment to continue in 2026. However, interest rates could be impacted by cuts if inflationary pressures do not materialise.”

Eli Sanchez, director, analytics, added, “Spain’s life insurance segment remains heavily reliant on bancassurance, which accounts for a significant share of distribution. Although this provides life insurers with stable access to a customer base and a strong premium generation capacity, it also creates some dependence on banking partners and limited flexibility in product development and pricing.”

To access a complimentary copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=364547.

AM Best is a global credit rating agency, news publisher and data analytics provider specialising 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.

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