...Weak Growth but Resilient Performance Fitch Ratings has maintained the sector outlook for French non-life insurance at stable, reflecting the solid financial profile of the insurers in the segment. However, the sector faces the challenge of weak volume growth. Premium growth has primarily been driven by increased premium rates since 2011. This has recently been limited by the impact of low economic growth, which has especially affected the property insurance market and led to the increased popularity of simple and low-cost products. Three successive years of moderately benign claims have supported underwriting profitability for non-life insurers, with some repeated local events but no major catastrophes in France during 2012-2014. However, underwriting profitability remains under pressure for motor insurance lines as lower claims frequency is more than offset by the increasing severity of claims, especially for bodily injury. Low interest rates have put pressure on investment income, which...
