Magazine date:
Feb 2013 According to Ernst & Young (E&Y), the profits generated by all European insurers would have dwindled down by 5% in 2012. If this forecast is confirmed, the profits of insurers may have been reduced by 12% over the past two years. E&Y has said this decline is accounted for by the low return on equity and the economic crisis that reduces premiums volumes.
The non-life class of business is suffering the fallout of the drop in household expenditure. Its growth does not exceed 2% over the next two years, compared to an average of 6.2% in the previous years. In life insurance, the high unemployment rate across Europe implies lower contributions.
The Italian market of life insurance is the hardest-hit with a decline of 25% in premiums revenues.