A.M. BestTV: French Non-Life Insurers See Improving Rates, Says A.M. Best Analyst

OLDWICK, N.J.--()--In this A.M.BestTV episode, Alex Rafferty, senior financial analyst, A.M. Best, discusses the issues shaping France’s non-life insurance sector's stable market outlook. Click on http://www.ambest.com/v.asp?v=frenchnl_english618 to view the entire program.

In the episode, Rafferty discusses the state of France’s non-life market and the rationale behind A.M. Best’s stable outlook.

“The stable outlook reflects insurers' resilient operating performance in a highly competitive marketplace, as well as the challenging operating environment,” said Rafferty. “Performance in the French market has been under some pressure in recent years, with the market returning a combined ratio of approximately 100%. However, A.M. Best notes insurers benefit from well-diversified and balanced underwriting portfolios, which allow insurers to benefit from exposure to more profitable lines.”

Rafferty also addressed pricing challenges in the market.

“In recent years, the premium environment has been under pressure given the capacity pressures in the market. A.M. Best sees favorably indications of an improving rate environment with initial estimations suggesting rate increases of around 2%-3% for the core lines in the non-life market of motor and property,” said Rafferty.

In general, Rafferty said he believes that, “insurers' balance sheets are well-protected from volatility arising from peak risks. This is due to the role that the national catastrophe regime plays in France, which albeit optional, provides insurers with unlimited state guarantee in the case of large events.”

To access a copy of this briefing, titled, “Market Segment Outlook: French Non-Life,” please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=272129.

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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