A.M Best has a stable outlook on the French non-life insurance segment. In A.m best’s view, French non-life insurers have demonstrated robust business models with generally well diversified profiles in the face of significant competition, pressure on technical margins and persistent low interest rates.
Insurers’ credit fundamentals are supported by solid balance sheets, with capital base reinforced by resilient profits- despite difficult operating conditions.
Recent legislative reforms aimed at greater protection for policyholders present further challenges to the industry and heighten the competitive environment in certain key market segments.
A new Best’s Briefing, ‘Market segment Outlook: French Non-Life’ states that against a backdrop of modest economic expansion, growth within the non-life insurance sector has remained limited, at around 2% in each year since 2013.
The economic and competitive pressures, translating into challenging pricing conditions, have weighed on insurers underwriting performance with non-life combined ratios hovering around 100%.
Since 2007 (excluding medical business), overall market performance has however remained relatively stable over this period.