Last year has been one of the most difficult years in the international insurance market, however, Fiji's insurance industry continued to be well managed, sound and well capitalized.

The Governor of the Reserve Bank Sada Reddy said that despite a challenging year on the scene, Fiji's insurance industry recorded a solvency surplus of $78.4million.

However, he said this is a reduction from 2007 due to the fall in values, of long term investment holdings of life insurers.

While releasing the 2008 Insurance Annual Report, Reddy said that the general insurance sector on the other hand, continued to record an increased solvency surplus and combined gross premiums for the insurance industry grew by 4.6% last year which is attributed to local insurers.

Reddy hopes that the insurance industry will carefully manage the various insurance risks, remain solvent and maintain plus increase operational efficiency, so that there is little or no pressure on domestic premiums, as this will assist in the economic recovery of Fiji in these challenging economic times.