Standard & Poor’s (S&P) has affirmed its industry and country risk rating for Australia’s general insurance sector as “low”.

It reflects a “very low” country risk and “low” industry risk, with insurers maintaining profitability despite challenges including a soft market and intense competition.

Challenger brands and banks are grabbing market share, and low interest rates persist.

But Australia provides a stable environment, and large insurers have years of steady growth and solid underwriting profits behind them.

They have also stabilised retention levels through targeted discounts and the strength of their brands, S&P says.

See ANALYSIS