The ratings outlook for the UK non-life insurance market remains stable despite the emergence of negative business trends in the market, said ratings agency Standard & Poor's.
Standard & Poor's credit analyst David Laxton said: "Although premium rates in a number of business lines are starting to turn, Standard & Poor's expects the UK non-life insurance market's current level of profitability to continue through 2004.
"The financial security of the market is robust, with ratings more likely to stay the same than to change over the coming year. While some individual companies may suffer downgrades, these are expected to be in the minority," he said.
The ratings agency said the current downturn in the insurance market's fortunes had been led by the motor sector, with signs of weakening rates for both private and fleet business. It said it expected price competition throughout the motor sector to lead to a climb in combined ratios over the medium term.
Rates in the property and personal lines sectors remained steady, said Standard & Poor's, although premium levels are weakening in the commercial lines sector. Only liability lines show signs of improved profitability.
