Fears of dramatically softening commercial lines prices are unfounded, according to a report issued by Standard & Poor's today.
The New York-based ratings agency improved its outlook on the commercial lines sector, raising it from negative to stable.
"Despite recently lowered ratings on some major players, it is becoming increasingly apparent that most insurers will weather the investigations by New York Attorney General Eliot Spitzer without further material damage," said S&P analyst John Iten in a statement.
In addition, fears that pricing among insurers would soften dramatically have not been borne out because of the industry's prudence in writing policies, Mr. Iten noted.
Almost all of the companies facing investigatory pressure continue to make underwriting profits, he added.
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