Conditions in the Chinese market heavily favour the country’s five biggest general insurers, which share more than 70% of the business, AM Best says.

The five had a combined operating ratio of 97.8% last year, an improvement on 98.3% in 2016.

Underwriting margins will remain under pressure in the medium term, especially for smaller players, even though the market has become the growth engine for insurance globally.

The ratings agency has a negative market segment outlook for China.