Non-Life Insurance: April CPI Report; Negative Spread Persists

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Non-Life Insurance: April CPI Report; Negative Spread Persists

Equity Research

Industry Update — May 12, 2026

Personal Lines Insurance

Non-Life Insurance: April CPI Report; Negative

Spread Persists

Modest Pricing While Severity Improves

Our Call Elyse Greenspan, CFA

Auto pricing rose 0.2% Y/Y in April vs. 0.8% in March (see CPI data). Gap between pricing Equity Analyst | Wells Fargo Securities, LLC

Elyse.Greenspan@wellsfargo.com | 212-214-8031

and maintenance & repair costs is (4.9%) vs. (5.3%) in March. Maintenance and repair

Hristian Getsovcosts were down 20bps M/M and +5.1% Y/Y (vs +6.1% in March).

Equity Analyst | Wells Fargo Securities, LLC

Hristian.Getsov@wellsfargo.com | 212-214-5309

Negative spread between pricing/severity tightens: Maintenance and repair was up Dominick Cioffi

5.1% Y/Y in April (vs.+6.1% in March), while parts and equipment costs slowed slightly to Associate Equity Analyst | Wells Fargo Securities, LLC

3.8% (vs.+3.9% in March). Repair costs improved to +3.3% (vs. +5.4%), maintenance and Dominick.Cioffi@wellsfargo.com | 212-214-8121

servicing costs were +6.7% (vs. +6.4%), & body work costs were again not disclosed. Gap

between pricing / severity was (4.9%), tightening modestly from (5.3%) in March. Vs. April

2019, pricing is +56.8%, vs. maintenance & repair costs +52.0%.

Car prices mixed: Used vehicle prices (retail prices), seasonally adjusted, were down 2.8%

Y/Y and flat M/M. The Manheim index was down 1.6% M/M in April after being up 1.4% in

March, suggesting potential declines in retail prices, which typically lag wholesale prices by

6 weeks. Manheim 2026 forecasts indicate prices will further decrease 1.1% by December

2026 from April ME index level. New vehicle prices, seasonally adjusted, were up 10bps M/

M vs. +10bps in March.