Underwriting results in most commercial lines insurance segments have noticeably improved over the last two years. However, commercial automobile insurers continue to struggle as this industry segment reported a third consecutive year of underwriting losses with a 106 combined ratio for 2013.

Executive Summary

A swift return to underwriting profitability in commercial auto is growing more unlikely as premium rates in all commercial lines are flattening following three consecutive years of rising prices. Fitch's James Auden provides a review of results in the line and explains the drivers behind recent underwriting losses for the industry overall.

A swift return to underwriting profitability in commercial auto is growing more unlikely as premium rates in all commercial lines are flattening following three consecutive years of rising prices.

Commercial auto insurance is the fourth largest U.S. commercial lines market segment based on written premiums. The commercial auto insurance business is only 15 percent as large as the personal auto line, and market share is more greatly dispersed as the top 10 writers of commercial auto account for 44 percent of market share versus over two-thirds share for the top 10 private passenger automobile writers.

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