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DEVLHON Consulting Deciphers: The State of French Insurers in the First Half of 2024
In the first half of 2024, French insurers subject to Solvency II encountered significant developments in both life and non-life insurance, according to a detailed report from the ACPR. Here are the main insights and trends.
Life Insurance: Record-Breaking Gross and Net Collections
Life insurance collections reached unprecedented levels. Total gross collections across all types of life insurance amounted to €80.6 billion, reflecting a 12.9% increase compared to the first half of 2023. This growth is particularly strong for euro-denominated products, which brought in €48.9 billion, a 19% rise.
Net collections also saw a remarkable increase, totaling €15.4 billion—4.6 times the 2023 level. This dynamic is due to a significant drop in redemptions on euro-denominated products, while unit-linked products (UL) continued to show high net collections, albeit with a slight decline.
Non-Life Insurance: Growth in Premiums and Claims
Non-life activity experienced stable growth. Premiums rose by 5.6%, driven mainly by auto insurance (+6.4%), medical expenses (+5.9%), and property damage insurance (+7%). Claims also rose, albeit moderately, with an increase of 4.1% over the period.
Asset Allocation and Performance: Enhanced Liquidity Management
Insurers’ assets reached a market value of €2,626 billion, a slight increase compared to the end of 2023. Insurers continued to prioritize liquid and high-quality investments to prepare for potential liquidity crises. Sovereign bonds make up 19% of assets, and equities account for 23%, with a large share of investments directed toward French or Eurozone entities.
Solvency: High Overall Ratio Despite a Slight Decline
The overall solvency ratio for insurers remains solid at 246%, despite a slight drop compared to the end of 2023. This decline is due to an increase in the required solvency capital, particularly for bancassurers.
In Conclusion
The results from the first half of 2024 demonstrate the notable resilience of French insurers in the face of current economic challenges. The sector remains robust, adapting to inflationary pressures and fluctuations in interest rates.
