The medical-malpractice insurance line, which has performed dismally over the past few years, will become profitable again in 2006, a new study predicts.

The analysis by Conning Research and Consulting Inc. titled “Medical Malpractice: New Opportunities Emerging? Or the Eye of the Hurricane?” identified several favorable developments for its optimistic forecast. They include: declining frequency, rising investment income, and the progress in state reforms, particularly in states designated by the American Medical Association as “crisis states.”

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