Press Release - APRIL 12, 2019
AM BestTV: French Nonlife Insurance Sector Remains Competitive But Resilient, Says AM Best Director
FOR IMMEDIATE RELEASE
OLDWICK - APRIL 12, 2019
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 http://www3.ambest.com/bestweek/purchase.asp?record_code=284193 .
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