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Progressive continued to book higher commercial auto rates during Q4'17

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Progressive continued to book higher commercial auto rates during Q4'17

Progressive Corp., the largest underwriter of commercial auto premiums nationally, continued to raise rates in its commercial auto business in the last quarter of 2017. The group received seven rate hike approvals in the quarter, three of which were among the most notable rate increases during the period.

According to an S&P Global Market Intelligence analysis, the new rates across seven states would collectively lead to an increase in written premium of $19.1 million for the group. That was the largest written premium change during the period by any single group.

Liberty Mutual Holding Co. Inc. received the highest number of rate hikes during the quarter, with 89 rate increases across 13 states and the District of Columbia. Those increases could generate $14.2 million in additional premiums with a weighted average rate of 9.9%, based on calculations using rate filing data. Of that calculated premium total, about 52% of the written premium change is expected from just three states — New Jersey, Missouri and Texas.

Missouri regulators approved the most rate hikes of any state in the final quarter. The state signed off 83 rate-increase requests, which may lead to an additional premium of $9.1 million in the state. The other active states were Utah, Pennsylvania and Georgia with 51, 44 and 43 rate-increase approvals, respectively.

Commercial auto insurers sought fewer rate reductions, with state regulators across 25 states approving only 68 rate cuts for the three months ended Dec. 31. W. R. Berkley Corp. and Utica National Insurance Group were among the groups to receive rate cut approvals, with 18 and 8 approvals, respectively.

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Click here for a template providing rate changes for a select entity, state or type of insurance over a selected time period. With this template, users can also view information on each filing along with key metrics related to premiums, approval time and affected policyholders.

Click here for a webinar with information on the resources SNL has available regarding rate filings.