...Rating Outlook Stable Despite Negative Fundamentals Fitch Ratings expects a significant proportion of (re)insurance classes to experience further price falls in 2016. Consequently, we expect the London market's attritional loss ratio to deteriorate from 52% in 2014 to 54% in 2016. Fitch expects the weak trading environment to continue but there have been recent signs that the speed of rate decreases may be slowing and there have been small rate increases in some classes, particularly on specialty lines. In reinsurance classes, which accounted for 34% of premium in 2014, we expect casualty rates to fall further in 2016 as reinsurers shift capacity from property-catastrophe lines, where profit margins are perceived to have narrowed. Capitalisation in the London market is at a record high (see Figure 3). The low level of catastrophic events, particularly US windstorms, has prevented the erosion of London market companies' capital strength. This is not only reflected in the highest ever absolute...
