A spokesman for Chubb said the company does not comment on speculation.

Though Mr. Gallant admitted it may be "ambitious" to place some companies as possible targets, KBW looked at current book value and business plans to come up with its list.

"We have a talented team of analysts and we make our guesses," he said. "Last year if you bought our targets, you had a return of 25 percent."

KBW added that it predicts "the most likely targets are still small- to mid-cap specialty and commercial lines players with niche-market expertise."

Also on the list of buyers assembled by KBW: Travelers Companies, Ace Ltd., Flagtsone Reinsurance, Harleysville, Markel Corp., State Auto Financial, Tower Group and Validus Holdings.

"These companies have a lot of cash," Mr. Gallant noted.

He said some companies have the attributes to be on both lists, like Hallmark Financial Services, HCC Insurance Holdings and RLI Corp.

In its look ahead, KBW said the industry is "teetering" on the cusp of the next hard market. Though it is hard to predict what would set off such a turn. Mr. Gallant and the analysts involved in the report pinpoint a "pop in loss cost inflation, another round of investment portfolio losses or a major loss event" as possible triggers.

But don't count on the next hard market in 2011, said KBW. When it does happen, it "may be disappointing in magnitude" if the overall economy remains relatively stagnant, thereby halting real growth.