The property-casualty insurance industry can expect a "modest" underwriting loss this year as soft market pressures deteriorate underwriting profits, according to a rating service analysis.

Fitch Ratings said in a report that it has revised its forecast for this year and predicts that the industry will shift from a profitable combined ratio of 98.1 into the loss column with a 100.4 combined ration.

The poor underwriting results, coupled with a modest decline in investment income, will translate into an estimated return on surplus of 7.6 percent, down from 9.2 percent previously projected, the firm reported.

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