True to its roots: CargoCorp’s rapid growth is driven by LatAm

On the back of a ringing endorsement from AM Best almost three years ago Cargo Risk Corporation has enjoyed rapid growth – opening offices in London and Hamberg and with more in the pipeline. But, true to his roots, its CEO still eyes the Latin American markets as offering the greatest potential for growth.

“I am an entrepreneur at heart and my roots are in the Latin American region,” Juan Carlos Martinez told Miami Reinsurance Week Today. “I want to help other entrepreneurs succeed. We are on a strong growth trajectory, but our heart will remain in Latin America, where there is so much potential. The continued growth of Miami Reinsurance Week, attracting professionals from all over the world, illustrates that.”

Martinez, now a 40+-year veteran of the risk-transfer business, formed Cargo Risk Management in 1998 in Miami. In 2015, founded CargoCorp Underwriter a specialty managing general agent (MGA) & Lloyd’s Cover Holder specialising in marine lines. The company as grown steadily. Sticking to its speciality of providing capacity for marine cargo lines in the Latin America market, it has proven its underwriting expertise by producing profitable business for its carrier partners. 

But Martinez also admits there was a reticence among clients in some parts of Latin America to use what is an unregulated entity and form of risk transfer. MGAs were regulated in a few countries – Mexico, Colombia and Chile – but no others. He recalls that some clients used to request a signature from the end carrier, instead of Cargo in those days.

That was to change, however, in 2022 when Cargo became the first MGA to secure a rating from AAM Best. It was the culmination of what was initially a trial by the rating agency, which started in 2021. But in April 2022, Cargo was assigned a Performance Assessment of PA-3 (Strong). The outlook assigned to the Performance Assessment was stable.

AM Best commented at the time: “This assessment reflects CargoCorp’s strong underwriting capabilities, strong governance and internal controls, strong financial condition, strong organizational talent and strong depth and breadth of relationships.”

Global credibility 

That move represented a game changer for Cargo. Suddenly it had credibility in all markets. Add this to its ethos of “old fashioned consistency and underwriting for profit instead of growth” (its combined ratio across the past 10 years has been between 36% and 44%) and started on a remarkable growth curve. 

“That rating represented a big milestone for us,” Martinez said. “We felt it was recognition off the hard work and ethos we had always had. We had always set the highest standards. We were the only MGA in Latin America with a compliance department. It represented the start of a true expansion of our footprint.”

Since then, Cargo has opened an office in London and one in Hamberg. And its growth in numbers is extraordinary. Its gross written premiums increased by 41% in 2024, compared with 2023 and its headcount spiked to 67 from 45. Martinez anticipates further strong growth in 2025, with GWP increasing by another 25% to reach some $60 million.

At the heart of the growth, he says, is an ethos that it wants to keep helping smaller and medium sized businesses. He believes these are often overlooked and underserved by the insurance industry. “Yet it is these that keep the world moving,” he said. “Seven out of ten entrepreneurs fail – but that is because they lack support. We will support them.”

And, despite the increasing global footprint, he is also eyeing further growth in Latin America. Ignoring Brazil for a moment, which he describes as so big it is a conversation unto itself, he picks Mexico, Chile, Argentina and Colombia as having the biggest potential for growth. The company recently hired a full-time employee in Chile, reflecting this ambition. 

Profit is sanity…

But Martinez is also in no rush to grow. He reiterates the company’s ethos of underwriting for profit, not growth – and highlights the fact that, further enhancing this, its use of technology. He believes Cargo is the first MGA in Latin America to embed artificial intelligence into its operations.

Embedded in its underwriting process is also an internal and proprietary software system that provides extensively detailed assessments of risk for real-time feedback for insureds with potential exposures.

But, once again, the company can take such endorsements from third parties. AM Best conducted its most recent performance assessment on Cargo in July last year. Once again, it offered the company credibility and praise, while acknowledging the growth phase it is in.

“Cargo Corp’s financial condition is supported by a trend of consistently profitable earnings and continued positive net worth. AM Best will continue to closely monitor the company’s performance during this growth phase. Stability of income benefits from the range of programs underwritten by the company. The company is privately held, and all insurance risk is placed outside the organization,” the rating agency said.

“The company is staffed more than appropriately for its size and scale with extensive industry experience in marine cargo. Its organizational structure is compact for ease of communication and efficient work processes. Many processes are retained in-house to ensure consistency and provide flexibility. While Cargo Corp has faced   turnover in the last few years, the company has continued to grow its underwriting and overall staff.

“Cargo Corp’s portfolio of programs has progressed since its founding. The company offers a range of programs in its target market of marine cargo and affiliated coverage in Latin America. Management continues to monitor growth opportunities in new markets, as well as maintain relationships with well-rated capacity providers.”

Juan Carlos Martinez is the chief executive officer at CargoCorp. He can be contacted at jcm@cargocorpuw.com.

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