US property and casualty insurers will suffer underwriting losses this year as the market continues to soften, says Fitch Ratings.

The ratings agency predicts less favourable underwriting performance and profitability after several years of strong profits.

It also forecasts a combined ratio of 100.4%, meaning insurers will pay out more on claims and underwriting costs than they will earn in premiums.

Fitch anticipates underwriting results and operating profits will continue to deteriorate well into next year.