New business pricing in personal lines remained relatively flat over the June quarter, according to Morgan Stanley’s proprietary index.

Home and contents was negative for the sixth straight quarter – down 4.5% from the previous period and 1.6% from the June quarter last year.

Motor was up following last year’s aggressive pricing, but was still 6% cheaper than peak premiums of 2013.

“With the challenger brands and Allianz competing aggressively, Suncorp and IAG must also hold market share to protect their top line,” the report says.

“The weak top line and reinvestment in volumes, alongside peak underlying margins and downside risk to yields, present risks to… earnings.”

The proprietary index combines more than 30 home and contents and 40 motor quotes across major insurance brands, assessing typical and some higher-risk clients.

“We are now seeing home and contents stabilise, but relative to where it was it’s still down,” analyst Daniel Toohey told insuranceNEWS.com.au.

“Motor has been coming off – there’s a bit of a recovery but it’s still lower than it was.”