U.S. workers' compensation premiums increased by 9.3% year over year in the first quarter, and the industry's direct loss ratio improved by 2.7 percentage points.

Direct premiums written grew to $14.92 billion from $13.65 billion a year earlier, according to an S&P Global Market Intelligence analysis. That increase represented the largest year-over-year premium gain in eight years.

Loss ratio ticks down

The business line's direct loss ratio dropped to its lowest first-quarter figure in four years at 49.5%.

Chubb Ltd. reported the lowest first-quarter direct loss ratio among the top 10 U.S. workers' compensation insurers at 34.7%, compared to 50.1% in the prior-year period. Old Republic International Corp. had the second-lowest direct loss ratio at 38.4%, a sharp improvement from the 51.2% recorded in the first quarter of 2021.

Liberty Mutual Holding Co. Inc. logged the highest direct loss ratio in the first quarter among the largest workers' comp writers at 62.3%, followed by American International Group Inc. at 60.3% and The Travelers Cos. Inc. at 57.3%.

*Download an Excel template to access historical market share of P&C groups. *Click here to read about first-quarter workers' compensation rate changes.

Travelers stays on top

Travelers was the largest U.S. workers' compensation writer based on direct premiums written in the first quarter. The insurer logged 6.8% year-over-year premium growth, ending the quarter with $1.16 billion in direct premiums written and controlling 8% of the market nationwide. Overall renewal premium changes in the business line were positive territory as exposure growth hit their highest levels recorded since 2006, Gregory Toczydlowski, Travelers' president of business insurance, said during an earnings call.

The Hartford Financial Services Group Inc. held a 7% share of the market after its direct premiums written hit $996.6 million in the first quarter.

Of the top 10 biggest U.S. workers' compensation insurers, AmTrust Financial Services Inc. had the largest first-quarter premium growth at 26.4%. The insurer ended the quarter as the third-largest U.S. workers' compensation writer, with $878.1 million direct premiums written and 6% market share in the period.

Among the industry's biggest writers, only AF Group saw its direct premiums written decline year over year in the first quarter. The 5.5% premium decrease led to a slightly smaller market share for AF Group. It fell to 2.9% in the first quarter from 3.3% in the prior-year period.