Moody's 2002 report has concluded that the industry is still suffering from financial deterioration.
The report concluded that while 2001's catastrophe losses contributed significantly to most insurers' results, the latter stages of the soft market continued to impact insurers' credit profiles and ratings.
Moody's analyst Marc Serafin said: "Rate increases and a renewed focus on profitability have led to some improvement in recent months, but the US P&C [property and casualty ] industry still confronts several credit issues that continue to concern us."
The entire P&C industry struggled with weaker returns across the board compared to previous years.
Serafin added: "The data supports the notion that the best rated firms tend to not only be financially strong, but also better-positioned to weather cyclical downturns."
Lower rated firms were found to be more sensitive to deteriorating market conditions.
The report also highlighted a trend of deteriorating capitalisation, especially for firms rated A and lower for insurance financial strength.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
