Keefe, Bruyette & Woods (KBW) said it expects weakening returns on equity and continued soft pricing for the property and casualty industry, but the financial analyst said a hard market could emerge "sooner than many anticipate."

KBW made the statement while commenting on its favorable outlook for big brokers relative to the rest of the p&c industry.

For the p&c industry overall, KBW said in its report, "Property and Casualty: Limping out of 2010; Fourth-Quarter Earnings Preview," that it expects "little change in regard to the difficulties of pricing for the marketplace." KBW also said, "We expect discussions of January renewals to be downbeat with average rate declines of 5-10 percent."

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