UK insurers continue to exercise caution in their investment strategies despite the threat to earnings, Fitch Ratings has said.
The agency said it expected the proportion of risky assets on insurers' balance sheets to remain broadly stable in the face of persistent low interest rates.
It added that in some cases assets could be off loaded as new regulations come into force.
Fitch said: "Persistent low interest rates are a challenge for insurers because they both limit the returns they can generate on investments and can also increase their liabilities."
The Financial Services Authority expressed concern in a recent speech that insurers may chase yields via riskier investments.
