Fitch revises Groupama view to stable

Fitch Ratings said it revised the outlook on Groupama Assurances Mutuelles and core subsidiaries to stable from positive while affirming their long-term issuer default ratings at A-.

The revision of Groupama's outlook to stable is based on the significant uncertainty created by the global coronavirus pandemic, which has resulted in high levels of volatility in capital markets. This, in turn, has resulted in a drop in interest rates, as well as variability in stock, bond and derivative prices.

The combination will likely pressure earnings and variability in capital levels of European life and composite insurers, the severity and duration of which is impossible, particularly for insurers with material exposure to life insurance risks such as Groupama. Fitch believes these conditions, along with its negative outlook on the French life insurance sector, no longer support a positive outlook.

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