Editor's note: This post originally appeared at SNL.com
A changing of the guard could be near in the commercial auto liability space.
Data from SNL show that Progressive Corp. has substantially narrowed the gap with Travelers Cos. Inc. over the last two years for the top spot in the segment, based on direct premiums written. Travelers boasted $803.6 million in direct liability premiums written in the first half of 2012, but recorded just $762.7 million of such premiums through the first six months of 2014. Progressive, meanwhile, has grown its share in commercial auto liability, as it posted $732.4 million in direct written premiums in the first half of 2014, compared to $667.9 million in the same period of 2012.
That growth has not been at the expense of loss mitigation either, as Progressive's direct incurred loss ratio is actually down versus the first six months of 2012. Travelers, meanwhile, may be writing less business than it did two years ago, but it also has made a significant dent in its loss ratio. Additionally, Progressive pursued a range of single- and low-double-digit commercial auto rate increases in various states during 2013 and into 2014, which has had an impact on its growth.
The data SNL used to compile these rankings are based on direct premiums written for commercial auto liability only and do not include physical damage premiums. Auto physical damage is reported on quarterly NAIC statement blanks as a combination of both private and commercial premiums.
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