OLDWICK, N.J.--(BUSINESS WIRE)--In this AMBestTV episode, Konstantin Langowski, financial analyst, AM Best, said despite a slight deterioration of the combined ratio for Germany’s non-life industry in 2018, the overall sector's financial condition still supports a stable market segment outlook. Click on http://www.ambest.com/v.asp?v=germannonlife419 to view the entire program.
Langowski spoke about AM Best’s rationale for its stable outlook on Germany’s non-life sector.
“The three main reasons for AM Best’s stable outlook are the sector’s solid rate adjustments, the German non-life insurers’ strong balance sheets and good enterprise risk management,” said Langowski.
He also addressed why AM Best expects the sector’s growth to slow down in 2019.
“Growth will be subdued in 2019. Although domestic demand is likely to remain robust, the slowdown in global economic momentum, as well as continuous trade tensions, remains a key risk for the German economy. However, solid rate adjustments are likely to remain a positive factor for growth in the German non-life market.”
Looking forward, Langowski said he believes some of the challenges to the sector will be the continued unfavorable performance of the property market, due to commercial property results, which has been weak over the past five years. In addition, severe-weather events in certain years also have had a negative impact on the combined ratios of private property carriers.
To access a copy of this market segment report, titled, “Market Segment Outlook: Germany Non-Life”, visit http://www3.ambest.com/bestweek/purchase.asp?record_code=284326.
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