Auto insurers' profit margins will continue to face pressure this year, according to one leading property-casualty equity analyst.

Bank of America analyst Brian Meredith said the fact that the January Consumer Price Index monitor of auto insurance costs increased by a mere .6 percent, compared with a 1 percent increase the previous month, is a clear indication of the problems faced by the carriers that specialize in this line.

And p-c companies should not expect to make it up in homeowners' increases, despite the hurricane-related costs of 2005.

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