The first quarter of 2006 could represent a profit peak for the property-casualty sector, according to one leading analyst.
Bear Stearns analyst David Small said yesterday that the unusually light catastrophe losses along with underwriters continuing to earn through profitable 2005 business could spell the beginning of the end of such robust profits as were reported.
“While it may take several quarters for lower pricing to impact reported results, we suspect growing equity bases and increased competition will pressure ROEs,” he wrote.
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