The European insurance sector remains under pressure, Moody’s warns.

Low interest rates and “legislative and regulatory interventions” are the main drivers for the ratings agency’s negative outlook on several life markets, including the UK and the Netherlands.

The outlook for the general insurance sector is more stable, according to Moody’s VP and Senior Credit Officer Dominic Simpson.

“Pricing trends in European property and casualty remain generally flat, albeit with some pressure, particularly in the commercial lines,” he said.

Reserve releases remain positive, reflecting the low inflation period. Moody’s expects a lower level of reserve releases next year.