Standard & Poor's revised its outlook for the Czech insurance market from positive to stable today.
This indicates that its ratings on insurers in the Czech market are likely to stay the same for the time being.
S&P said the stable outlook reflects the current period of stabilization in the market as insurers consolidate the market share gains from the recent demonopolization of third-party motor liability (TPML).
The previous positive outlook reflected strong inflows of capital, a recovery in earnings after the 1997 floods, and a strengthening in the business position of several of the insurers.
However, gearing up for the demonopolization of TPML put a strain on the insurers' capital strength.
S&P added that it expected the Czech insurance market to remain profitable.
