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Texas approves significant commercial auto rate increases in January

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Texas approves significant commercial auto rate increases in January

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Texas regulators signed off on a number of significant commercial auto rate hikes in January, with four of the top 10 increases across the country greenlighted in the Lone Star State.

Those increases could lead to an additional $24.0 million in premiums written, the largest of any single state, according to an S&P Global Market Intelligence analysis.

On the other side of the spectrum, a single rate decrease of 23.10% approved for Old Republic Insurance Co. could lead to the largest aggregate negative premium impact at $4.5 million.

AF Group tops rate hike chart

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AF Group topped the list of the most notable commercial auto rate increases in January after securing approval for a 23.6% rate increase in Texas. That rate hike alone is estimated to increase the group's cumulative premiums by $8.0 million.

The group could see its aggregate premiums increase by $8.2 million from six rate hikes approved during the month.

Progressive logs largest cumulative increase in written premiums

The Progressive Corp. could see the largest increase in total premiums from commercial auto rate hikes approved in January. Subsidiaries of Progressive received approval for six commercial auto rate hikes in January, which could increase the group's aggregate premiums by $16.8 million.

Three Progressive rate filings entered the top 10 most significant increases for January. The 2.6% rate hike obtained by a Progressive subsidiary from Ohio regulators seems to be the most impactful single rate increase, affecting more than 32,000 policyholders in the state. That rate increase could add $6.5 million to the group's cumulative premiums.

Everest Re Group Ltd. is expected to see the second-largest cumulative increase in commercial auto premiums after securing approvals for eight rate hikes that could increase the company's total premiums by about $11.1 million.

Old Republic dominates rate cut chart

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Old Republic secured four approvals to lower rates, which would reduce the group's premiums written by $5.0 million.

Three of the four rate reductions were among the top five most-notable rate decreases during the month, accounting for essentially all of the group's calculated premium decrease.