Stable casualty insurance pricing coupled with rising property insurance 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 both directors and officers [D&O] and general liability coverage remained stable, while workers' compensation insurance remained competitive.

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

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

He said this will result as companies shift capital to less capital intensive casualty lines as rating agencies increase capital 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 stop raising interest rates and companies deplete loss reserve redundancies," Mr. Meredith wrote.

With such conditions prevailing, Mr. Meredith said that reinsurers and commercial lines companies remain attractive investments, while personal lines carriers remain unattractive.

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Analyst: Commercial Property Insurance Rates Up

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