The top two most-impactful homeowners insurance rate increases approved in April were both in Texas, according to an S&P Global Market Intelligence analysis.
There were 14 rate increases in the Lone Star State during the month, which could lead to an additional $110.2 million in premiums written. The calculated increase in premiums written is the largest for any single state for April.
Farmers Insurance Group of Cos. could see the largest aggregate premium increase from nine rate hikes approved that, when combined, could boost the group's written premiums by nearly $75.3 million. More than 90% of the projected premium growth will come from one increase obtained by subsidiary Texas Farmers Insurance Co. The 8.3% rate hike is expected to affect almost 430,000 policyholders.
Lighthouse Property Insurance Corp. secured the second-most notable rate hike in Texas, which could raise the group's premiums by $19.3 million. Combined with the third-most impactful rate increase received by Lighthouse Excalibur Insurance Co., the group could see the second-largest cumulative premium hike.
On the flip side, Michigan state regulators approved the most notable rate cuts requested by subsidiaries of Michigan Farm Bureau and The Progressive Corp., which may cause their premiums to fall by around $6.9 million and $1.6 million, respectively.
Despite Progressive securing the second-most notable rate cut, Assurant Inc. is expected to see the second-largest aggregate decline in premiums, largely due to the three rate reductions approved in South Carolina, Nevada and Kentucky. The cuts, which could result in premiums declining by $1.7 million, are included in the top 10 most notable rate reductions during the month.