A report issued by Standard & Poor's said its ratings on Europe's insurers had continued to stabilise during 2004.
The ratings agency said: "Only five out of the 20 groups covered in this report continue with a negative outlook, compared with just five stable outlooks back in May 2003.”
The bulletin said: "Nine-month results released to date continue to show an improved performance against 2003.“
S&P said that ratings had stabilised "as management teams have taken corrective action by reducing risks and raising several billion euros more capital via debt and equity issues and asset disposals".
Despite favourable trading conditions, the agency warned that third quarter storms and the investigation into the US insurance industry “are clear reminders that insurers cannot rely on favorable market conditions for sustainable profits".
