AMSTERDAM–(BUSINESS WIRE)–AM Best has maintained a stable market segment outlook on the
Italian non-life insurance segment, supported by factors that include
continued expansion of the segment in spite of very low economic growth
and the expectation that good operating results will be maintained,
underpinned by sustained strong underwriting profitability. Prices for
motor business are stabilising following several years of decline, and
insurers’ solvency levels are resilient.
A new Best’s Market Segment Report, titled “Market Segment
Outlook: Italy Non-Life”, states a key element underpinning AM Best’s
stable outlook for the segment is its strong technical profitability,
which is deemed sustainable over the medium term. Most insurers have
well-diversified books of business, and growth in more profitable
segments has served to offset poorer performance for motor business.
Technical results for motor are positive, but considerably weaker than
for other risks.
The report adds that in recent years, technical results for the Italian
non-life segment have been supported by consistent reserve releases,
chiefly stemming from professional liability and motor. AM Best
considers such reserve releases unsustainable over the long term, which
is likely to have negative implications for profit margins. Nonetheless,
continued underwriting discipline and further expansion into profitable
non-motor lines are expected to support solid levels of profitability.
Despite Italy’s challenging macroeconomic environment, the non-life
insurance segment remains resilient owing to its solid operational
fundamentals. Nonetheless, further weakening in the economic environment
impacting the assets and solvency levels of Italian non-life insurers,
or sustained deterioration in market technical profitability, could
cause AM Best to revise its outlook to negative.
To access the full copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=284421.
AM Best is a global rating agency and information provider with a
unique focus on the insurance industry. Visit www.ambest.com
for more information.
Copyright © 2019 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.
Michael Dunckley, CFA
20 308 5422
Director, Research, Communications
– Europe, Middle East & Africa
+44 20 7397 0322
Associate Financial Analyst
20 308 5429
Director, Market Development &
20 7397 0280
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