U.S. commercial auto insurers’ liability premiums rose nearly 10% year-on-year in the second quarter

U.S. commercial auto insurers’ direct premiums written for liability jumped to $11.54 billion in the second quarter, up 9.6% from $10.53 billion a year earlier, according to an analysis by S&P Global Market Intelligence.

Premium growth

Including physical damage to commercial automobiles, total U.S. commercial automobile direct premiums written for the second quarter were $14.99 billion. The commercial motor non bodily injury loss ratio for the second quarter deteriorated to 72.3% from 67.5% in the second quarter of 2021. The total commercial motor loss ratio for the second quarter was by 70.4%.

There were also significant commercial auto rate increases in the first half of 2022. In June, commercial auto rate increases exceeded written premium reductions as only a handful of rate filings were expected to result in reductions. written premiums over $5,000.

Among the major U.S. commercial auto insurers, The Allstate Corp. saw the strongest year-over-year growth in direct written premiums for commercial motor liability in the second quarter, with an increase of 25.7%. However, Allstate held just 2% of the overall commercial auto market share for the second quarter, landing in a lower ranking among its peers.

From 2022, commercial auto figures incorporate bodily injury within the line of business, with this information now being disaggregated within quarterly regulatory filings. In previous periods, property damage included both personal and commercial autos, with personal autos accounting for the bulk of premiums.

Loss rate

Allstate also posted a second-quarter loss ratio of 117.8%, which was the highest loss ratio reported among the leading group of U.S. commercial auto insurers. During the insurer’s second-quarter earnings call, Glenn Shapiro, president of Allstate’s property liability, said the company plans to write less new auto business where it can’t grow enough. the costs.

Shapiro noted that Allstate was unable to get a sufficient rate in New York or get any auto increases in California, echoing comments from The Progressive Corp. CEO Tricia Griffith. , which also lamented the pricing environments in those states during the second-quarter earnings call. Progressive recorded a loss ratio of 66.4% for the period.

Old Republic International Corp. recorded the second highest loss ratio for the quarter at 81.9%.

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Progressive at the top

Progressive held 15% of the U.S. commercial auto market share in the second quarter, maintaining its long-standing lead, followed by The Travelers Cos. Inc. at 5% and Zurich Insurance Group AG at 4%.

Berkshire Hathaway Inc. and Nationwide Mutual Group were the only insurers in the group to see year-over-year declines in direct written premiums in the second quarter, with declines of 1.3% and 3.7%, respectively.

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