...Sector Outlook Negative: Fitch Ratings' sector outlook is negative, reflecting our belief that a significant proportion of London market (re)insurance business classes will experience further significant pricing pressures in 2016. As a result, the agency expects the market's overall attritional loss ratio to deteriorate from 52% in 2014 to 54% in 2016. However the London market still has sufficient headroom to return positive underwriting results, should catastrophe losses revert to the long-term historical average. Rating Outlook Stable: Despite the negative fundamental outlook, profit margins in most London-market specialty and excess and surplus lines are expected to remain within the bounds of current ratings. The stable rating outlook reflects Fitch's expectation that most London market insurers' balance sheets would be able to withstand a sizeable catastrophic loss occurring within the next 12-18 months. The majority of London market insurers will be in a position to take advantage...
