Fitch has reiterated its negative outlook for the global reinsurance sector, as declining premiums and weaker conditions across a range of lines offset lower catastrophe losses last year.

The ratings agency says market conditions are unlikely to improve in the near term amid continued competition from the alternative reinsurance market.

Of 24 reinsurers, all but four reported lower combined operating ratios last year than in 2012.

The industry recorded insured natural catastrophe losses of $US31 billion ($33.39 billion) last year, down from $US65 billion ($70 billion) in 2012, after a quiet Atlantic hurricane season.

Solid underwriting profitability was offset by a decline in the unrealised investment gain/loss position on fixed maturities and capital market activity, resulting in shareholders’ equity growth of just 0.6% for non-life reinsurers.

Non-life reinsurers achieved reinsurance net written premium growth of 5%, despite flat or declining prices in property and casualty reinsurance lines.