Italian life insurers' profits declining, says Fitch
Source - SMW
Fitch Ratings expects the operating profitability of Italian life insurers to decline in 2016, whereas non-life underwriting performance is likely to remain stable.
Fitch makes these comments in its latest dashboard on the Italian insurance market following the publication of 1H16 results from the largest companies.
It says that premiums for unit-linked business fell sharply in 1H16 as stock-market volatility dampened demand for equity exposure, and investment returns declined, leading to weaker profits for life insurers.
Motor rates decreased in 1H16, driven by market competition. The soft market is likely to continue in 2H16 but we expect rates to start rising in 2017 as new car sales accelerate, which increases demand for insurance, and as claims frequency increases, linked to growing economic activity.