France - Low interest rates to hit profitability of life insurers
Thursday, 08 18 2016, Category: Insurance and Reinsurance, Country: France
French life insurers profitability could suffer if current very low interest rates continue, according to S&P Global Ratings in its latest report, titled “Persistently ultra-low interest rates could mean ultra-low earnings for French life insurers by 2020”.
"French life insurers' ability to pay discretionary profit sharing to policyholders would consequently diminish markedly in the coming years, in our opinion, as would the margins they source from their general account savings business," said Marc-Philippe Julliard, credit analyst at S&P Global Ratings.
Source: Intelligent Insurer