Brian Sullivan, editor of Dana Point, Calif.-based Risk Information Inc., said in 2006 "executives may just say we are making money, so why don't we just keep doing what we are doing?"

But he does not discount the possibility that "someone will come up with a strategy that calls for cutting pricing to gain market share."

V.J. Dowling, managing director of Farmington, Conn.-based Dowling & Partners Securities, noted, however, that some troubles lurk beneath the current numbers.

"Homeowners is not as profitable as everyone thought it was," he said. "And auto rates are not going up while costs are. But the fact is we are having fewer accidents each year and that can't go on forever."

Mark Puccia of Standard & Poor's said he doesn't expect this year will match last year's performance, which in turn was based on a "wonderful claims experience."

"But there is an awful lot of information out there. For example, Progressive seems to have more underwriting cells than people, and hopefully that will shore up the results this year."

All agreed that the Florida catastrophe market is virtually dysfunctional. "There is no rational reason why any company would put any capital in that state," Mr. Sullivan said.

But until the ability to purchase a home is threatened by a severe capacity shortage, no drastic measures will be taken, he added.

Mr. Puccia warned not to look to the government for these measures. "The degree of distrust for the industry in Washington cannot be underestimated," he said.