AM BestTV: Product Penetration Aids Stable Outlook for French Life Insurance Market, Says AM Best Senior Financial Analyst

Business Wire

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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^AMBestTV covers exclusive AM Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View ^AMBestTV episodes at http://www.ambest.tv.

AM Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.