A.M. Best Co. said it will maintain a stable outlook for the personal lines segment in 2006 based on its favorable risk-adjusted capitalization and consistently strong operating profitability.

Despite the impact from an unprecedented hurricane season in 2005, the Oldwick, N.J.-based agency predicts the segment will generate an underwriting profit for the third consecutive year.

With private passenger automobile liability and physical damage lines accounting for more than 60 percent of net written premium for the sector, the personal lines segment's strong profitability has benefited greatly from favorable frequency and severity trends, according to A.M. Best.