A weak dollar and the imposition of stricter underwriting has masked generally positive trends in premium volumes for major European insurers, claimed a report from independent insurance intermediary Benfield.
In its survey of the first nine months of 2003, European Reinsurance Quarterly: Underwriting Discipline, Benfield found the industry was still burdened by legacy issues.
It said solid premium growth and favourable terms and conditions had yet to show up as earnings.
Key findings of the survey included:
· Underwriting performance had benefited from below average catastrophe losses, although there was an increase in catastrophe and other large losses in the third quarter
· Downgrades in financial strength ratings continued, with the sector settling into the mid A to AA range, and
· Some major European companies had taken advantage of firm pricing to increase their presence in fields such as US casualty.
