French Insurers' Profits Set to Fall Due to Competition
Saturday, 11 19 2016, Category: Insurance and Reinsurance, Country: France
Fitch Ratings says in a new report that it expects French insurers to face intense pricing competition leading to lower profits in 2017. A soft market is set to weaken French non-life insurers' earnings amid signs of increasing claims frequency. Low interest rates will also constrain profitability, particularly for French life insurers. We maintain negative sector outlooks on the French insurance market. French non-life insurers face intense pricing pressure, both in motor and non-motor (notably commercial) lines. We expect a combined ratio of 102% for the market in 2016 and 2017, assuming a normalised level of weather-related claims in 2017.