In its universe of 49 companies it analyzes, KBW says that, excluding catastrophe losses and reserve development, the group reports an accident-year combined ratio of 97.3 for the 2011 first half, compared to 93.9 for the same period in 2010.

“The P&C industry continues to struggle with deteriorating fundamentals, as accident-year loss ratios move higher, reflecting pricing inadequacy,” says KBW.

The results are beginning to take a toll on insurers, the analysts say.

“Reinsurers and regional underwriters suffered disproportionately from the impact of catastrophe losses and reported the worst underwriting results and weakest overall profitability,” says Fitch.

The results should point to an increase in premiums, but when that will happen remains a question.

“Fitch anticipates that property insurance and reinsurance markets affected by recent catastrophe events will experience significant price increases in response to recent losses,” the rating agency says.

But while some commercial markets are showing increased signs of “price stability,” a return to a broad P&C hard market is “unlikely given current-market capital levels and competitive dynamics,” says Fitch.

KBW says there are pockets of “pricing strength,” but the industry “is teetering and waiting for that one 'event' to push the industry into action.”

At least one positive mentioned from a carrier standpoint is the growth in premiums written.

KBW notes that premium levels rose 4 percent on a year-over-year basis, “reflecting a stabilizing economy.” However, premium growth is expected to remain “muted” from the combination of a weak economy, high unemployment and lack of widespread rate hardening.