Paris (Reuters) – The prospects on the life insurance sectors and non -life in France for 2025 are neutral, said on Thursday the Fitch rating agency, citing solid technical margins and tariff increases that compensate the risks especially macroeconomic, political and climatic.

During a presentation, Fitch explained that technical margins in life insurance will be supported by high interest rates to improve stock profitability.

The active yield should improve all the more since analysts of the rating agency anticipate a high net collection with the units of account (UC) and even a probable return to a positive net collection on the euro fund , after three years of decollect. This return to a positive collection would be motivated by a more attractive yield compared to similar banking products, in particular due to the drop in booklet A.

“High interest rates have a positive impact on active yield but life insurance has a long duration of assets, about 10 years. Improvement of rates takes time to be felt in the Stock, “said Thibaut Droumaguet, analyst at Fitch Ratings.

“Net collection plays a crucial positive role because incoming flows allow insurers to reinvest at higher rates. The good the collection, the greater the capacity to invest at higher rates, improving the profitability of existing wallets “He added.

The uncertainty, which could reduce the flows of savers, and the spacing of the sovereign “Spread” are two risks cited by Fitch weighing on French life insurers.

With regard to non-life insurance, bonuses in damage and liability insurance should grow, of approximately 6% by car and 10% in housing, to follow the underlying trends of losses which increase both frequency and In intensity.

“The increase in the compulsory contribution to finance the regime of natural disasters in France alone explains more than half of these price increases,” said Thibaut Droumaguet.

Haut de la Categorie Investment Grade

A strict subscription discipline added to pricing increases should allow combined ratios, the relationship between bonuses and claims plus expenses, to be around 100% on the two lines, provided fitch analysts.

The damage and responsibility insurance market, which remains very competitive, is also faced with a heavy climate claims weighing on prospects, with an invoice which could reach 5 billion euros in 2024 despite the absence of a major event , warned Fitch.

Also according to the rating agency, the health and foresight insurance sector, which has been operating for many years in an environment marked by societal changes exerting negative pressure on margins, should succeed in keeping a ratio combined around 100 %.

“Insurers have the ability to adapt, but in the shorter term we consider that government intervention and deficit reduction policy by transferring part of social security costs to complementary health is one of the main risks For the sector, “said Thibaut Droumaguet.

“In this context, the ‘rating’ of insurers in France should remain securely established at the top of the investment grade category because of their solidity, their activity profile and capitalization,” judged the analyst.

(Written by Bertrand de Meyer, edited by Blandine Hénault)

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