Large euro area insurers show quite reasonable profitability, 1 albeit the aggregate picture masks substantial heterogeneity  1  See ECB (2015), “Financial Stability Review”, May. BIS central bankers’ speeches  1  across countries and types of business.
Small and medium-sized, non-diversified life insurers with high policyholder guarantees are typically highly exposed to low yields and have found their business models more under pressure. For pension funds the impact of low interest rates is strongest on those maintaining defined benefit schemes.