The outlook for the Bermuda insurance market is stable, according to Moody's Investor Service, which said the outlook reflected robust balance sheets, strong profits and improved risk management strategies employed by the Island's insurers and reinsurers.

While the outlook remains under watch because of inherent losses from hurricanes and other catastrophes that will affect insured lines of business and the softening market conditions.

New insurers and reinsurers who have entered the market in Bermuda must also strive for balance between near-term benefits from short-term opportunities and establishing longer-term business to sustain viability, the rating agency said.

In its report Moody said further: "In light of increased scrutiny of insurers' operational risk management and oversight, corporate governance has become a more prominent consideration."