Stable casualty insurance pricing coupled with rising propertyinsurance rates prevailed in commercial lines in the first quarter,according to an analyst's report.

The Bank of America analysis also found that rates for bothdirectors and officers [D&O] and general liability coverageremained stable, while workers' compensation insurance remainedcompetitive.

"Retentions were flat across all lines, but limits rose in bothproperty and D&O, reflecting increased demand for coverage onthe part of the corporation," said analyst Brian Meredith.

Mr. Meredith said BofA-Advisen Commercial Lines Pricing indexesshowed casualty rates and non-hurricane-exposed property rates willremain competitive as the industry experiences what he termed a"rating agency soft market."

He said this will result as companies shift capital to lesscapital intensive casualty lines as rating agencies increasecapital requirements for catastrophe exposure.

"But in the near term, we continue to believe that we will see a'soft landing' for commercial lines insurance as the feds stopraising interest rates and companies deplete loss reserveredundancies," Mr. Meredith wrote.

With such conditions prevailing, Mr. Meredith said thatreinsurers and commercial lines companies remain attractiveinvestments, while personal lines carriers remain unattractive.