Ratings agency Fitch has upgraded the UK general insurance market’s position.

Higher premiums and less volatile investment returns have combined for a better long-term outlook, with Fitch moving the industry from negative to stable.

Fitch Insurance Associate Director Martyn Street says the industry has bounced back strongly after the global financial crisis.

“While individual companies’ earnings remain under pressure, the sector has remained resilient, aided by the diversity of its products and markets, and in particular by the London market, where international business has enjoyed a strong performance in 2009,” Mr Street said.

“The sector’s preservation of capital strength is also a key factor leading to the change in outlook.”