and so to contribute to them of the results

French insurance was certainly rather resilient to the crisis. But it is now faced with many challenges: economic, financial and regulatory. The environment of low rate (with a rate of borrowing State to 10 years in 2.60) seriously cut financial returns and supplements the provisions to be. The loss experience is bullish in automobile insurance and housing, in a context of more frequent natural events (storms Klaus and Xynthia, flooding of the Var...). It weighs on the results of the insurers. However the entry into force of Solvency II, January 1, 2013, leaving crab-wise a necessary strengthening of own funds... and so, to contribute to them, of the results.

The problem, according to Fitch Ratings, is that the French insurers have been slow to take the corrective measures necessary, namely a decrease in the compensation paid to the insured life and an increase in the damage insurance rates. "In life as in damages, they have a year of delay," explains Vanessa André and Marc - Philippe Juilliard, respectively Director and senior director at Fitch.

A year of delay

"Despite a rebound in the new business, the margins of life insurance products in euro remains weak, mainly due to the low interest rate, resulting in a decrease in revenues from fixed-rate investments and participation rates still high profit by most insurers", noted the Agency. Fitch believes that skid has occurred in early 2009, when insurers served by 4 on average to insured persons, while "the world has changed" because of the financial crisis. It is this delay that year that has not been overtaken. Another element on the profitability of the sector, "the collapse of the collection since 2008 on contracts in units of account, generating high margins".

Fitch still noted "negative" to "stable" Outlook on French life insurance, including on the ground that "the gap between interest rates guaranteed on the products of life - an average of 1 - and used - an average of 3.7 for 2009 - give life insurers more flexibility to adjust the rates used in the title of 2010 and beyond". In return, the stall may be serious for the insured persons this year, as predictable served rates downward will complement the collection, now over water, 12.1 of CSG and CRDS part in euro of the mpt contracts.

The Agency on the other hand maintains its negative perspective on the French non-life insurance. "No likelihood of improvement in the profitability of the non-life insurers" is anticipated for 2010: the combined ratio (claims and reported premiums costs) of the sector should remain close to the 104,2 of 2009. The horizon of remedy is found to be "uncertain", as dependent on the ability of insurers to actually raise their tariffs, knowing that should generally 12 months for this type of make effect. "Increases in rates have been announced in 2009 and 2010, but they remained low magnitude - between 1 and 3 on average - and have not been sufficient to restore profitability," explains Vanessa André. The relief will also depend on the mercy of the weather during the winter season 2010-2011.