Cost cuts stabilise profitability of Dutch life insurers, non-life improvements expected

Cost cuts have offset low interest rates and declining premium volumes on legacy portfolios, stabilizing profitability of Dutch life insurers, according to Fitch Ratings.

This is, however, unlikely to lead to a significant improvement in earnings as the business mix shifts to lower margin capital light savings products, with strong competition between the providers, the ratings agency noted.

Non-life combined ratios increased in 2016 mostly driven by competitive pricing and claims related to an extreme hailstorm in June. Fitch expects margins to improve in 2017 reflecting expectations that insurers will cut costs, improve claims management and increase premium rates.

Don't miss our monthly insurtech email newsletter - sign up today

Today’s stories

Fairfax closes $4.9bn Allied World acquisition

Lloyd's to introduce satellite imagery and intelligence service

QBE targets growth in Europe with key appointment

Ed poaches Charles Taylor's chief actuary

FERMA confirms Willaert for next term

AXIS Capital snaps up Novae for $604 million

Willis Re appoints new global CEO as Cavanagh steps down

AIG names former Marsh boss as global COO

Did you enjoy reading this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.