French life insurers’ profitability continues to decline
Tuesday, 09 06 2016, Category: Insurance and Reinsurance, Country: France
French life insurers are expected to report lower operating profitability in 2016, after investment results, driven by lower interest rates, had declined in the set of first half results, as Fitch Ratings maintain a negative outlook on the sector.
French life insurers’ profitability in the first half of 2016 was hit by lower interest rates, which increased the value of liabilities related to long-term contracts, and companies strengthened their profit-sharing reserves in anticipation of a more prolonged period of low rates, said Fitch.
Fitch expects similar themes in results for the second half of 2016, with overall profitability continuing to decline in 2017.
Source: Intelligent Insurer