Personal lines insurers' recent hefty profit trend will falter in 2008 as prices continue to soften, Standard & Poor's Rating Services predicts.

The firm, n its U.S. personal lines outlook report, aid it does not believe "the sizable profit margins of the recent past will continue because of intense rate competition, especially in the auto market…"

S&P said competition and less available new business growth will also reduce profits, s carriers may be tempted to discount product offerings and loosen terms and conditions to maintain their competitive positions and market shares, as they did during the last soft market from 1987-2001.

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