A.M. BestTV: French Life Insurers Respond to Unforgiving Market, Says A.M. Best Analyst

OLDWICK, N.J.--()--In this A.M.BestTV episode, Charlotte Vigier, senior financial analyst, A.M. Best, discusses a new report that shows French life insurers cutting returns on traditional products in response to lower interest rates and sluggish sales. Click on http://www.ambest.com/v.asp?v=frenchlife517 to view the entire program.

“France, like other European countries, has a low interest rate environment and this has been putting pressure on the margins of insurance companies for a number of years,” said Vigier. “Additionally, France has got a lot going on at the moment in terms of macroeconomic pressures. At the same time, there have been some regulatory changes that have had quite an impact on the insurance industry. For example, the regulator now has powers to suspend withdrawals from life savings contracts. Also, going forward, the regulator will have more of an input as to how much an insurance company needs to set aside for with-profits reserves,” said Vigier.

In the year ahead, Vigier sees the French insurance sector remaining resilient. “Insurance companies are being more prudent in terms of the yield they give policyholders, in terms of strengthening their balance sheets, with more transferred to those with-profits reserves,” she said.

To read the Best’s Special Report, titled, “French Life Insurers Increase Prudency Amidst Taxing Market Conditions,”go to http://www3.ambest.com/bestweek/purchase.asp?record_code=260021.

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A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at http://www.ambest.tv.

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Contacts

A.M. Best
Lee McDonald, +1-908-439-2200, ext. 5561
Group Vice President, Publication and News Services
lee.mcdonald@ambest.com

Contacts

A.M. Best
Lee McDonald, +1-908-439-2200, ext. 5561
Group Vice President, Publication and News Services
lee.mcdonald@ambest.com