Steady improvement for U.S. personal auto insurance companies has culminated in the sector’s best underwriting performance in 10 years, according to Fitch Ratings in a new report.
The U.S. personal auto insurance market has shown continued fundamental improvement that is pointing to full-year statutory underwriting profit for the first time since 2007, according to the findings of the report titled, “U.S. Personal Auto Insurance Market: Underwriting Recovery in Full Swing.”
Related: Rising premiums, lower losses bode well for U.S. auto insurance industry
Material premium rate increases over successive renewal periods and a return to more favorable claims frequency experience are key contributors to this result. A 65% industry aggregate statutory direct loss ratio in private passenger auto liability and auto physical damage combined through the first nine months of 2018, represents an improvement of over five points from full-year 2017.
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