Fitch ratings has said the outlook for the reinsurance industry remains "stable" , with poor investment returns and softening prices the main clouds on the horizon.
Martyn Street, co head of reinsurance at Fitch ratings, said: "We expect the majority of ratings will be reconfirmed at current levels over the next 18 months. We expect global reinsurers to remain profitable."
He added that levels of profitability are mainly affected by the current investment environment.
"We expect continued low interest rates which will make it more challenging for reinsurers to achieve similar 2014 profitability to 2013," said Street.
There is also an overcapacity in all areas of the reinsurance market and this is expected to continue for a number of years.
Chris Waterman, managing director of Europe for Fitch Ratings, said: "As part of our rating we look at reinsurer's discipline at keeping out of markets if they think pricing is not adequate.
"Capital can flow in and out of the sector very easily. When pricing is unfavourable it invests elsewhere."
Street added that, in historical terms pricing remained adequate and that reinsurers are better at technical pricing than they were 10-15 years ago.
"We are unlikely to see significant movement in pricing one way or another," he added.
Fitch has also said that in order to trigger a sector outlook from stable to negative a single loss event of greater than $60bn combined with a sudden increase of interest rates of over 300 basis points would be necessary.
Street said such a combination was rare and he considered it "highly unlikely."
