Underwriting results across the International Group (IG) of P&I clubs are improving, but losses remain unacceptably high, said ratings agency Standard & Poor's.
It said the market was unlikely to move much closer to underwriting profitability by the year-end of 20 February 2004.
Despite this, S&P said rate increases were expected over the next two renewals, with stronger investment results set to return the market to profitability. As a result, S&P said it had revised its rating outlook for IG from negative to stable.
S&P said it expected 2004 to be a watershed year for the P&I clubs, with rate increases during the year expected to move the market closer to underwriting profitability in February 2005 and February 2006.
