Ratings agency Standard & Poor's (S&P) has revised its outlook for the global reinsurance industry from negative to stable.
S&P said improved accident year profitability in 2003 and good earnings prospects for 2004 and 2005 were factors behind the change.
Credit analyst at S&P, Stephen Searby, said the change in outlook would not necessarily result in ratings upgrades for individual reinsurers, but indicated that the majority of ratings would remain the same in the coming year.
Searby said S&P was encouraged by a "stability of sorts" across the industry, with recent capital raising by reinsurers meaning their balance sheets were largely repaired.
He said that terms and conditions remained tight, while several reinsurers were demonstrating a commitment to profitable underwriting by writing less business.
Moody's has also revised its outlook for the global reinsurance industry to stable, with less downgrade activity expected in the coming year.
