Non-public P&C insurance carriers are reporting continued rate increases, with direct-written premiums increasing 3.7 percent in 2011 compared to 0.3 percent in 2010, according to a report from SNL Financial.

The SNL report, based on company filings with the National Association of Insurance Commissioners (NAIC) by non-public insurance carriers, “finds more evidence of the turn in the pricing cycle previously observed by the combination of agent surveys, retail brokers and regional, commercial-lines-focused insurers.”

SNL says its analysis was based on a review of management discussions and annual-statutory statements filed with state-insurance regulators, as well as annual reports by select reciprocal exchanges, privately held stock companies and mutual carriers.

Nationwide Mutual Insurance Co. generated 2011 direct-written premiums of close to $15 billion, up 0.7 percent from the previous year. SNL says it was the first year-over-year increase in direct-written premiums since 2007—and the carrier's largest since 2006. Nationwide says new business, customer retention and positive trends in average premiums “provided a lift.” Still, its combined ratio rose more than 9 points year-over-year to 110.7.

SNL says Farmers Insurance Group also produced 0.7 percent growth in direct-written premiums, including 0.2 percent growth in personal lines and 3.2 percent in commercial lines.

Farmers says net-written premiums rose by more than $732 million in 2011 to $14.86 billion. But the company's combined ratio still rose 8.6 points to 107.9.

The Erie Insurance Exchange and its affiliated P&C companies continued to grow premium and improve their competitive positioning through the combination of careful agency selection and increasing market penetration into existing territories of operation.

SNL says group-level direct-written premiums expanded almost 6 percent to more than $4 billion, Erie's fastest annual growth rate since 2004. The carrier says it produced a combined ratio of 108, up 9 points from 2010.

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SNL Report Shows Continued Rate Increases for Non-Public P&C Insurers

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