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American Family hikes, State Farm cuts homeowners rates in July

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American Family hikes, State Farm cuts homeowners rates in July

American Family Insurance Group subsidiaries received approvals for six rate increases that could result in $19.7 million in additional premiums within its homeowners business, according to an analysis by S&P Global Market Intelligence.

A 6.5% rate hike by American Family Mutual Insurance Co. S.I. in Missouri accounted for the bulk of those projected premiums. That one increase alone could to grow American Family's homeowners premiums by $17.6 million. This is the second consecutive month where the insurer received significant rate increase approvals for its homeowners line.

Liberty Mutual Holding Co. Inc. subsidiaries also received approvals for noteworthy homeowners increases in July. Regulators signed off 11 rate-hike requests by nine Liberty Mutual units, which could collectively boost group's homeowners premiums by $35.4 million.

California regulators approved seven rate-increase requests during July, which could potentially boost homeowners written premiums in the Golden State by $31.8 million. That was the largest calculated increase in any state for the month, followed by Texas at $28.1 million.

The most significant rate cut was obtained by State Farm Mutual Automobile Insurance Co. unit State Farm Lloyds. The unit lowered homeowners rates by 2.6% in Texas, which could reduce the insurer's premiums by $45.8 million.

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