Insurance Sector, Fitch is not optimistic

The rating agency Fitch has maintained its negative outlook for non-life insurance because of the natural catastrophes of 2009 and early 2010 coupled with the poor performance of the motor and homeowners' insurance. Moreover the financial crisis has worsened the situation by reducing investment returns. The rise of tariffs from 1% to 3% in 2009 came too late. The combined ratio increased from 99.8% in 2008 to 104.2% in 2009. The non-life insurers are likely to see their ratings decline in the coming months.