GEICO Corp. units received approvals for 18 rate increases for their private-passenger auto businesses nationwide in May, three of which approved by Texas regulators were among the most significant rate increases during the month.
Rate increases were approved in seven states that could potentially grow the GEICO group's premiums by $166.1 million. The largest increase came in Texas for GEICO County Mutual Insurance Co. where an 8.4% rate hike could result in an estimated increase of $96.7 million in premiums written. The new rates for GEICO County went effective on July 1, impacting nearly 807,000 policyholders in the Lone Star State.
Berkshire Hathaway Inc.'s GEICO Corp. is the nation's second-largest private passenger auto writer, controlling 13.15% of the market, according to an analysis of first-quarter NAIC statements. Regulators across the country approved 15 rate increases requested by GEICO in April.
Rate decreases for State Farm Mutual Automobile Insurance Co., Nationwide Mutual Group, and Progressive Corp. were among the notable reductions approved during the month. State Farm received approvals to lower rates by 3.0% in both Michigan and Tennessee, which could lead to a combined decrease in written premiums of $69.9 million.
This analysis included 438 private-passenger auto approved rate filings in May, of which 239 resulted in rate increases and 42 led to rate decreases. The remaining rate requests had no impact on written premiums.
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