The financial stability of European insurers is unlikely to improve in 2005, according to AM Best's managing senior financial analyst, Miles Trotter.
Speaking at the Biba conference in Manchester he warned of softening market and disease claims eating into insurers' reserves.
He said: "From a creditor perspective there is likely to be a challenging environment for 2005.
"Loss experience should improve but will be lost in rate decreases and widening terms and conditions. Future earnings may not be enough to maintain current levels of capital adequacy."
