...The Australian non\01life insurance sector has experienced a period of intense competition in recent years. Strong levels of profitability bolstered and attracted capital, subsequently causing the market to enter t he softening phase of the underwriting cycle around 2005. Although downward pressure on premium rates continued into 2007, the 18\01month period to 30 June 2008 delivered the necessary capital pressure to facilitate rate hardening across some classes. While large weather\01related l osses have supported ra te hardening in shorter\01tail classes, in particular property and private motor, rates in the longer\01tail commercial liability classes have remained flat. Profitability in the latter has been well supported by significant prior period releases, the result of stronger technical pricing and prudent reserving in recent years. Capital for Australian non\01life insurers remains strong. Based on the Australian Prudential...
