Global multiline insurers (GMIs) will further strengthen capitalisation next year thanks to their diverse income sources and wide geographical reach, Standard & Poor’s (S&P) says.

Low levels of non-life claims following “fairly benign” weather conditions have lifted earnings in the sector, which has an average rating of AA-.

Falling reinsurance rates have also helped, and GMIs have withstood low interest rates well.

“Earnings in the sector have stayed solid over the past five years, despite the extended period of low interest rates, particularly in Europe,” S&P analyst Volker Kudszus said.

“We believe we will see the GMIs continuing to build their earnings and capital as long as they maintain their current business and financial profiles.”

The 14 GMIs rated by S&P are Axa, Allianz, Zurich, Aviva, Generali, AIG, Ace, QBE, XL, Tokio Marine, Aegon, Prudential Financial, MetLife and Prudential.