Standard & Poor's has issued a positive report card for the European insurance industry.
The ratings agency has attributed the industry's buoyant position to factors such as the absence of large losses, peak-of-the-cycle underwriting profits and solid investment performance.
Simon Marshall, S&P credit analyst, said: "The ratings within the sector support this buoyant view, with 79% of insurance ratings assigned a stable outlook or developing CreditWatch listing, 16% a positive outlook or CreditWatch listing, and just 5% a negative outlook or CreditWatch status.”
He added: "While there is much to be positive about in the European insurance sector as we look forward to 2007, it should also be remembered that the quiet 2006 US hurricane season leaves unanswered crucial questions that emerged in the aftermath of the 2005 storm losses, as well as potentially damaging the pricing environment going forward."
