Worries about lack of reserving by reinsurers led Fitch, the ratings agency, to give the sector a negative outlook for 2004.
The non-life sector, by contrast, appeared "stable" across Europe except for the French market where low claims were giving it a helpful push.
Describing the general economic mood as "more optimistic" than a year ago,
Fitch said in a statement: "The improving equity markets have also generally helped the insurance industry post better results across all segments."
It said the rating environment across all industries was "broadly stable."
