Johannesburg, Jan 26 (I-Net Bridge) - Fitch Ratings says in a new special report that although the operating environment in South Africa remains challenging, the performance of non-life insurers has been resilient.
"Despite pricing remaining under pressure, and the volatility in the investment markets, profitability in the South African non-life insurance industry strengthened in H111," says Nicole Gibb, Associate Director in Fitch's Insurance team in South Africa. "This was reflective of improved underwriting performances, strong solvency positions and the maintenance of market share by major players."
The report also discusses regulation affecting the industry. Fitch expects premium income to remain under pressure due to the industry's high level of competitiveness and the continued financial constraints on consumers in South Africa. In some cases, Fitch believes that insurers may continue to experience difficulty in charging an appropriate premium for the risks they insure. As a result, Fitch expects the performance of non-life insurers in H211 to have been in line with or only slightly up on H111's results.
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