Press Release - APRIL 12, 2019

AM BestTV: French Nonlife Insurance Sector Remains Competitive But Resilient, Says AM Best Director

  Lee McDonald
Group Vice President, Publication and News Services
+1 908 439 2200, ext. 5561


OLDWICK - APRIL 12, 2019
In this episode of AM BestTV, Ghislain Le Cam, director for analytics, AM Best, discusses the factors behind the rating agency’s stable market segment outlook on France’s nonlife insurance market. Click on to view the entire program.

Le Cam said that underpinning AM Best’s rationale for the outlook is insurers’ ability to navigate market dynamics.

“The stable outlook for the French market mainly reflects the overall market dynamics that are stable, but still very challenging,” he said. “The fact is that in this environment, the insurers have been fairly resilient. The environment in France is one of severe competition with pressures on technical margins, and yet, interest rates are still at historically low levels. … Additionally, the market is pretty well-diversified.”

Le Cam said insurers remain well-capitalized, and AM Best expects insurers’ balance sheets to remain robust.

“Capital bases are expected to continue to progress with good organic capital generation,” said Le Cam. “In addition, when it comes to balance sheet strength and solvency levels, because of the historically low interest rates that have been prevailing in recent years, there has been an increased appetite for some non-traditional asset classes in real estate and a bit more in equities. With that said, the overall asset allocation for the French non-life market remains relatively conservative. AM Best believes the market would be able to absorb market shocks.”

To access a copy of this market segment report, titled, “Market Segment Outlook: French Non-Life”, visit .

Recent episodes of AM BestTV include:

  • U.K. Life Companies Aided by Annuity Market, Says AM Best Associate Director: Tony Silverman, associate director of analytics, AM Best, said that despite possible complications from Brexit, the market segment outlook for the U.K. life insurance sector remains stable: .

  • Negative Outlook on U.K. Non-Life Sector Based on Political Uncertainty, Performance, Says AM Best Senior Director: Catherine Thomas, senior director of analytics, AM Best, discusses the rating agency’s negative market segment outlook on the U.K. non-life sector, citing the need for improvements in technical performance and developments in regulatory and political issues: .

  • Legalized Cannabis Creates Insurance Concerns and Opportunities, Say AM Best Analysts: Josie Novak, associate analyst, and David Blades and Robert Raber, associate directors, all of AM Best, discuss how expanding legal use of cannabis is impacting personal and commercial lines of insurance coverage: .

  • Foreign Investment in China’s Life Sector Set to Rise, Says AM Best Senior Financial Analyst: James Chan, senior financial analyst, AM Best, said China’s move to raise limits on foreign ownership of insurance companies will benefit the country’s insurance industry, particularly the life insurance sector: .

AM BestTV covers exclusive AM Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at . View AM BestTV episodes at .

AM Best is a global rating agency and information provider with a unique focus on the insurance industry.