A Standard & Poor's report has found the current market to be in a stable condition, and it expects good results expected to continue in 2005.

The quarterly report, Industry Report Card: European Insurance, also identifies trends which it expects will have a significant impact on the bottom line in the future.

Where companies have reported quarterly results, there is still positive earnings momentum, it said.

"Non-life results remain excellent, and we expect 2005 to be a record year for underwriting profits," said Standard and Poor's credit analyst Hans Wright.

"Investment conditions also continue to be favorable, with limited exposure to the Ford and GM debt downgrades and higher interest rates generally having a positive impact for insurers."

The majority (66%) of all insurer financial strength ratings in Europe remain stable. Nevertheless, it found premium rates in 2004 and 2005 to be softening and underwriting losses are expected to deteriorate based on business written today.

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