What’s Trending in Auto Loss Combined Ratios

Some Canadian auto insurers may be experiencing fewer losses than their U.S. counterparts, a new report from ratings agency Fitch suggested.

A mid-year review of U.S. personal auto segment results, based on filings for nine public company insurers that report quarterly, showed aggregate written premiums rose 10% from the prior year.

Despite that, the segment’s combined ratio -- claims costs divided by premiums -- remained in unprofitable territory at 100.4% during the first half of 2023. But that number’s an improvement over a 101.3% combined ratio in 1H22.

Some carriers Fitch reviewed reported year-over-year combined ratios that were weaker than the average -- with Progressive Corporation being the only one to report a combined ratio below 100%. And, in the first half of 2023, several carriers posted combined ratios above 110%.