OLDWICK, N.J.--(BUSINESS WIRE)--In this AMBestTV episode, Pierre Tournier, senior financial analyst, AM Best, said about 40% of French household savings are invested in insurance offerings. Click on http://www.ambest.com/v.asp?v=frenchlife_english519 to view the entire program.
AM Best has placed a stable market segment outlook on France’s life insurance market. Tournier discussed the rationale for that outlook.
“Over the past few years, the French life market has continued to produce profitable results,” said Tournier. “The market has taken active management in this current low-interest rate environment and continues to enjoy positive net flows, something that is a good sign for a healthy industry. Additionally, the French life insurance market enjoys a privileged place in individual savings schemes, with 40% of household savings invested in life insurance policies.”
Tournier also addressed how the sector has navigated the low-interest rate environment.
“It is quite challenging. The 10-year rate remains around 80 basis points and short-term rates have been negative for the past few years. The French life insurance industry, though, has continued to manage its crediting rates down; consequently, maintaining these profitable results.”
Looking forward, Tournier said he expects the segment to remain profitable in the medium term. “AM Best believes that the sector has the willingness and the ability to manage down its rates, as well as the financial flexibility to do so,” he said.
To access a copy of this market segment report, titled, “Market Segment Outlook: French Life”, visit http://www3.ambest.com/bestweek/purchase.asp?record_code=284228.
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- Despite Storms, Outlook for Germany’s Non-Life Sector Stable, Says AM Best Financial Analyst: 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: http://www.ambest.com/v.asp?v=germannonlife419.
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