Commercial auto liability premiums jump 19% in Q1: S&P

First-quarter commercial motor direct written premiums increased 19.1% year-over-year to $12.37 billion in 2022 and have risen steadily over the past five years, according to a report released Thursday by S&P Global Inc.

Direct liability premiums written in the first quarter jumped 58.4% from $7.81 billion in the first quarter of 2018 for the line of business, according to report data.

Including commercial auto physical damage lines, total U.S. commercial auto direct premiums written for the first quarter totaled $15.65 billion.

The Progressive Corp. has by far the largest market share of the U.S. commercial auto market with $2.84 billion in direct written premiums in the first quarter, according to S&P data. Progressive suffered a direct loss ratio of 68.8%.

Premium growth was supported by more vehicles per policy and a shift in business mix toward higher premium coverage, Progressive reported in a recent filing with the U.S. Securities and Exchange Commission. , said S&P.

The Travelers Cos. Inc. trailed far behind with direct written premiums of $828.3 million in the first quarter, followed by Farmers Insurance Group of Cos. at $722.9 million. Travelers and farmers recorded loss ratios of 60.0% and 69.5%, respectively.

Most of the largest U.S. commercial auto insurers posted loss ratios below 70%, S&P said in its report.