The word "perpetual" in the first statement is a seductive mirage; insurance float is never an endless windfall, but a constantly evolving commitment, a promise made to policyholders that weighs on every investment decision.
Imagine the scene: a French insurer, facing an unexpected series of major claims – a natural disaster, for example, hitting the coast.
What seemed to be an abundant and cost-free float suddenly turns into a pressing obligation, with premiums collected becoming funds to be mobilized to compensate victims.
The sustainability of this float depends directly on the ability to manage these cash flows under the watchful eye of the AMF.
It is not an eternal source, but a delicate cycle of collection and disbursement, where every euro must be justified.