Performances and growth, source of risks for insurance in Europe

In its last semestrial report on financial stability, the European Central Bank (ECB) has estimated that the decline of the States' AAA bond yields, which stand for a major portion of the insurers' investments, degrades the profitability of their investments. The ECB has also unveiled that the poor economic activity and the rise of loss experience, following a 2010 year's start marked by natural catastrophes are likely to have a negative impact on the market's results. The ECB has, however, noted that the insurers are benefiting from reserves that allow them to amortize an unusual level of claims. Insurers' shareholders' equity yields have reached 10.8% in the first quarter of 2010 compared to 1.5% a year earlier.