The US reinsurance market is finally stabilising due to four years of improved pricing and conditions, according to Standard & Poor’s (S&P).

The ratings agency’s report – US Reinsurance Year-End 2004: Ratings Stability in 2005, An Atoll in Stormy Seas – says reinsurers are expected to report healthier operating results in 2005 if no large-scale disasters occur.

Although S&P lifted the outlook for the US reinsurance sector from negative to stable for the first time in several years, it says it does have concerns over the industry’s ability to prolong the positive trend into 2006 and beyond.