MEXICO CITY–(BUSINESS WIRE)– #insurance–The elimination of a fiscal credit on value added tax (VAT) paid to third parties such as hospitals and on other claims-related expenses in Mexico is likely to create greater earnings volatility and pressurize the capitalization of smaller or monoline insurers, according to a new AM Best report.Under the 2026 Federal Revenue Law, insurers can no longer recover the 16% VAT they pay to third-party repair shops, hospitals or service providers when settling a claim, mak