Improved pricing for London market insurers in 2018 may not be enough to relieve the pressure on their underwriting results from high expenses and lower reserve releases, Fitch Ratings has said.
The ratings agency has therefore maintained its negative sector outlook for the industry.
In the meantime, these higher expenses will keep underwriting results under pressure. Many insurers also reported lower reserve releases in H1 2017 than in H1 2016.
Fitch said it expects reserve releases will contribute less to underwriting results than in recent years.