Progressive hikes, State Farm cuts commercial auto rates in Q4'20

Texas regulators approved the largest number of commercial auto rate increase requests in the final quarter of 2020, which could boost the industry's calculated written premiums by more than $77.0 million.

Five out of the top 10 notable rate increases in the quarter were approved in the Lone Star State, according to an analysis of S&P Global Market Intelligence. A 5.7% rate hike secured by a Progressive Corp. subsidiary in the state may be the most impactful of any approved increase in the period, as it could boost the group's written premiums by $33.9 million.

Progressive subsidiaries also received rate-hike approvals in six other states. When combined, the increases could result in premiums growing by $14.7 million. Overall, the insurer could see the largest aggregate positive premium impact of any insurer, at $48.6 million, from seven rate hikes approved during the quarter.

Old Republic International Corp. is expected to see the second-largest premium increase at $23.1 million, thanks to 22 rate hike requests approved across 11 states. Nearly 48%, or $11.0 million, could come from Texas where the group obtained four rate hike approvals in October 2020.

On the other side of the spectrum, regulators approved 28 rate cut requests for State Farm Mutual Automobile Insurance Co. units. The rate reductions could lower the group's calculated written premiums by $8.2 million.

State Farm was listed seven times in the top 10 most-notable rate decreases approved during the last quarter of 2020.