Japan’s five major insurers have reported a total combined operating ratio of less than 100 for the first time in six years, but they expect slower growth in net written premium for the financial year to March next year.

Fitch Ratings says Tokio Marine & Nichido Fire, Mitsui Sumitomo, Aioi Nissay Dowa, Sompo Japan and Nipponkoa have raised vehicle premiums, but further increases are needed to lift underwriting profit.

Higher premiums and lower claims have improved the combined operating ratio to 97.5, but Fitch says slower premium growth, the hit from a rise in the consumption tax and growing repair costs are likely to weigh on improvement in ratios this financial year.

A combined operating ratio below 100 means the insurer is making an underwriting profit.

Insurers are expected to report higher profits as they pay out claims from February snowfalls.

The claims bill will be about ¥200 billion ($2.09 billion) and caused insurers to increase their catastrophe reserves in the financial year to March 30 this year.

They are expected to release reserves as the claims are paid out this year.