NU Online News Service, June 4, 2:35 p.m.EDT

Insurance rates are on the rise, but the pace of increases isnot the same across the board, and some lines that showedaggressive upward momentum earlier are beginning to slow, accordingto an analyst's report.

Meyer Shields, an analyst with Stifel Nicolaus, saysproperty-catastrophe rate increases are beginning toslow, indicating that there is ample supply in thereinsurance market to meet the high demand for coverage.

Shields says there are reportsthat property-catastrophe renewal pricing was "less positive thanmany expected."

As an example of the high reinsurance capacity for propertycatastrophe coverage, Shields says Validus and others havecapitalized special-purpose reinsurer AlphaCatRe 2012, Ltd. for $70million. The reinsurer will write single-limit lower-layer Floridawind risks underwritten by Florida-domiciled insurers.

Additionally, Shields says Renaissance Re formed TimicuanReinsurance III Ltd. with $55 million and two RenRe subsidiarieswill cede Florida wind risk.

Regarding commercial lines, Stifel Nicolaus says rate increasesfor workers' comp, commercial auto liability, commercial multipleperil and product liability should continue to gain traction asunderwriting profits deteriorate.

For workers' comp, the report says loss trends are graduallyshowing deteriorating performance, and additional adversedevelopment is expected in the coming year.

Commercial multiple peril is described as "volatile" due tocatastrophe losses from 2009 to 2011.

While a small line of business, product liability has beenunprofitable and continues to display a "consistent track record ofoverall adverse development and deteriorating immediately-prioraccident-year development."

But other commercial-lines coverages are showing improvesresults, which may mean a slower pace for rate increases, StifelNicolaus says.

The report notes that "other liability results improved modestlyin 2011, which will probably postpone aggressive rate increases,while medical malpractice apparently has a way to go."

Contrary to the deteriorating performance of other lines ofbusiness, medical malpractice outlook "remains very positive."

The "accident year loss picks remain very stable [for med mal],and there has been only the faintest hint of declining prior-periodreserve releases," the reportnotes.