By David Surles, CPCU, RPLU, AAI IIAT Director of Professional Liability Insurers for Regina Anderson, CIC in Texas IIAT Manager of Technical Services It was a ho-hum year! The Texas premium and loss data indicates insurers returned to a normal and profitable year, after suffering the effect of Hurricane Ike in. ratios in all lines were lower than they were in and either lower or close to national average loss ratios. Soft market pricing and economic problems are continuing to take a toll on written premiums, which fell in all three categories of commercial lines reviewed for this report. Here are the highlights in summary for : The aggregate loss ratio for all Texas companies for all lines of business was 59.4 percent (down from 89.2 percent in ), exactly the same as the national loss ratio (down from 66 percent in ). The Texas loss ratio was lower than or close to the national average in all lines. Texas independent agencies maintained position in the annual battle for personal lines market share, with 25.7 percent of the personal auto and homeowners premiums. Texas policyholders paid out $35.7 billion in premium for all lines of insurance (down 1.7 percent from $36.3 billion in ), which is 7.7 percent of the national premium volume of $464.4 billion (down 2.3 percent from $475.1 billion in ). The soft market in commercial lines and continuing business malaise are affecting Texas agents to the same degree as the rest of the country. for the three commercial lines reviewed for this report (business auto, commercial multiperil and workers compensation) was down 7.8 percent in Texas and in the U.S. as a whole. The following is a line-by-line analysis of the Texas premium, loss and market share data for. PERSONAL AUTO The top 20 companies in personal auto in Texas stayed almost exactly the same in. The only change was the exit of AIG, replaced by Amica in the #19 spot. Independent agents held ground against direct writers, with 27.5 percent in compared to 27.4 percent in. The personal auto loss ratio of 63.3 percent was down from 67.1 percent in and was slightly lower than the national average loss ratio of 64.3 percent. of Direct Writers & Agency Companies Texas Personal Lines Insurance Sales 1999- (Homeowners and Personal Auto) Agency Companies Direct Writers $11,197 $2,661 23.8% $11,480 $2,714 23.6% $12,778 $2,963 23.2% $14,909 $3,684 24.7% $15,932 $4,117 25.8% $16,112 $4,409 27.4% $16,274 $4,466 27.4% $16,637 $4,488 27.0% $17,094 $4,584 26.8% $18,018 $4,612 25.6% $18,758 $4,824 25.7% volume by year; dollar figures in millions Compiled from Best DataBase Services. Experience by state for homeowners, private passenger auto liability, no-fault and physical damage. $8,535 76.2% 1999 $8,766 76.4% 2000 $9,815 76.8% 2001 $11,225 75.3% 2002 $11,815 74.2% 2003 $11,703 72.6% 2004 $11,808 72.6% 2005 $12,150 73% 2006 $12,511 73.2% 2007 $13,406 74.4% $13,934 74.3%
$13,111.3 63.3% 64.3% $12,704.3 67.1% 63.7% 2007 $11,954.2 64.0% 61.2% 2006 $11,753.6 58.4% 57.9% 2005 $11,552.9 58.4% 60.0% Personal Auto Direct Writers $9,217.5 72.6% $9,510.0 72.5% Agency Companies $3,486.8 27.4% $3,601.3 27.5% Personal Auto $5,646.7 67.1% 59.9% $5,314.1 129.1% 71.8% 2007 $5,140.2 36.4% 50.9% 2006 $4,884.1 33.8% 48.0% 2005 $4,721.2 56.7% 73.2% Homeowners Direct Writers $4,188.8 78.8% $4,424.2 78.4% Agency Companies $1,125.2 21.2% $1,222.6 21.6% Homeowners HOMEOWNERS The homeowners loss ratio of 67.1 percent was a whole lot better than the Ike-driven 129.1 percent in, but it still has a ways to go to get back down to 2005 2007 levels. The top 20 companies were almost unchanged in, with GeoVera moving up from #23 to #17 and Bank of America (Balboa) in the #20 spot from #21, while Cypress and Unitrin dropped from #17 and #19 respectively. The Texas Fair Plan Association dropped from #13 to #16, writing $43.3 million in compared to $50 million in. The market share for independent agents increased a bit from 21.2 percent in to 21.6 percent in. Top 20 Personal Auto Carriers in Texas- Top 20 Homeowners Carriers in Texas- 1 State Farm 1 1,627.4 28.8 72.8 2 Farmers 3 761.6 13.5 42.6 3 Allstate 2 734.2 13.0 73.1 4 USAA 4 448.8 7.9 62.1 5 Travelers 5 276.8 4.9 65.9 6 Liberty Mutual 7 250.5 4.4 60.5 7 Nationwide 6 232.7 4.1 73.3 8 Farm Bureau 8 162.0 2.9 88.5 9 Chubb 9 113.0 2.0 69.7 10 Hartford 10 108.2 1.9 87.2 11 Republic 11 94.7 1.7 80.0 12 Amer Strategic (ASI) 12 77.6 1.4 47.2 13 Auto Club (AAA) 15 52.1 0.9 77.8 14 Amica 16 50.2 0.9 66.8 15 NLASCO (Nat l Lloyds) 14 47.0 0.8 81.0 16 Texas FAIR Plan 13 43.3 0.8 54.4 17 GeoVera 23 39.2 0.7 80.0 18 State National 18 38.0 0.7 72.9 19 MetLife 20 36.9 0.7 87.5 20 Bank of America (Balboa) 21 35.2 0.6 62.9 1 State Farm 1 2,658.8 20.3 69.3 2 Farmers 2 1,760.4 13.4 59.0 3 Allstate 3 1,549.1 11.8 54.2 4 Progressive 4 1,043.2 8.0 60.1 5 Berkshire Hathaway (GEICO) 5 890.2 6.8 63.8 6 USAA Group 6 840.2 6.4 74.4 7 Old American 7 468.2 3.6 68.0 8 Farm Bureau 10 464.7 3.5 69.2 9 Nationwide 8 461.0 3.5 62.2 10 Liberty Muual 9 367.7 2.8 59.6 11 Titus (Consumers) 11 335.5 2.6 57.9 12 Home State 12 312.2 2.4 60.7 13 Republic 13 258.4 2.0 68.0 14 Loya 14 247.9 1.9 60.2 15 Unitrin 15 179.9 1.4 67.8 16 Auto Club (AAA) 17 131.1 1.0 61.9 17 Germania 19 103.0 0.8 59.6 18 MetLife 18 96.6 0.7 58.0 19 Amica 21 73.2 0.6 74.7 20 Mercury General 20 70.1 0.5 59.3
$2,031.4 59.2% 45.5% $1,984.8 138.8% 56.8% 2007 $1,921.5 37.0% 47.7% 2006 $1,858.1 43.9% 42.4% 2005 $1,626.3 70.9% 60.7% Commercial Multiperil COMMERCIAL MULTIPERIL The commercial multiperil loss ratio of 59.2 percent in dropped nicely from the previous year. Severe property losses caused by Hurricane Ike produced a 138.8 percent loss ratio in. The top 20 companies changed positions slightly in, with Guide One and Old Republic moving out from #19 and #20 respectively, replaced by AIG in the #15 spot and Hanover in #19. COMMERCIAL AUTO Companies continue to flirt with profitability in commercial auto. The loss ratio of 59 percent follows the 61.4 percent in. The national loss ratio is significantly lower at 53.2 percent. There was only one change within the top 20 companies. Acceptance bumped Unitrin out of the #20 spot. WORKERS COMPENSATION The big story in workers compensation is the 15.5 percent drop in written premium, reflecting the economic conditions and higher unemployment in. This was the fourth year in a row that premiums have decreased from $2.8 billion in 2006 to $2.1 billion in. With the continuing low loss ratio, companies must be falling all over themselves to compete for good accounts. $1,958.5 59.0% 53.2% $2,129.5 61.4% 54.9% 2007 $2,183.9 56.6% 53.1% 2006 $2,149.5 56.3% 51.8% 2005 $2,053.5 54.2% 53.1% Commercial Auto Top 20 Commercial Multiperil Carriers in Texas- 1 AIG 1 169.6 8.7 64.5 2 Progressive 2 158.3 8.1 53.3 3 Travelers 5 129.7 6.6 61.3 4 Zurich 4 127.8 6.5 58.2 5 Liberty Mutual 3 127.3 6.5 51.7 6 Republic 6 102.1 5.2 58.3 7 Farmers 9 76.5 3.9 59.7 8 State Farm 8 64.9 3.3 51.6 9 ACE INA 11 64.5 3.3 56.5 10 Nationwide 7 61.8 3.2 54.4 11 Old Republic 10 60.1 3.1 65.7 12 Hartford 13 51.1 2.6 72.0 13 Great American 14 50.3 2.6 52.9 14 CNA 17 39.9 2.0 84.1 15 W R Berkley 12 38.9 2.0 57.3 16 QBE 19 35.8 1.8 62.6 17 Allstate 16 35.1 1.8 36.2 18 Home State 15 32.1 1.6 48.6 19 Sentry 18 29.0 1.5 95.0 20 IAT (Acceptance) 21 26.6 1.4 81.0 1 Travelers 1 180.0 8.9 148.7 2 Hartford 3 176.4 8.7 49.4 3 Liberty Mutual 2 158.1 7.8 2.9 4 Nationwide 4 129.6 6.4 95.3 5 Farmers 6 121.0 6.0 93.7 6 Zurich 5 118.3 5.8 46.1 7 Chubb 7 93.9 4.6 49.0 8 Tokio Marine 8 91.4 4.5 33.4 9 ACE INA 10 81.5 4.0 44.8 10 CNA 9 81.5 4.0 40.1 11 State Farm 11 74.6 3.7 67.4 12 Allianz 12 67.4 3.3 93.1 13 Church Mutual 13 57.2 2.8 82.3 14 Allstate 16 49.5 2.4 55.8 15 AIG 23 47.7 2.3 22.2 16 Republic 15 44.5 2.2 32.4 17 W R Berkley 14 41.5 2.0 49.4 18 Amerisure 17 28.0 1.4 33.9 19 Hanover 22 27.9 1.4 46.3 20 Central 18 27.2 1.3 54.4 Top 20 Commercial Auto Carriers in Texas-
The workers compensation loss ratio of 43.9 percent was a highlight for Texas insurers in. This compares very favorably to the national loss ratio of 67.9 percent, and was the second year in a row that the loss ratio was lower than 50 percent. Texas Mutual Insurance continues to dominate and thrive in the Texas market with 29.1 percent market share, compared to 29.3 percent in. Texas Mutual was hit harder than other companies in written premium, experiencing a 16.2 percent drop from to. Within the top 20 companies, Arch replaced Amerisafe at #19. THE 2010 OUTLOOK With only a one year hiatus from good results due to Hurricane Ike, insurers brought in another excellent year in. Through early August when this report went to press, hail losses have been about average for Texas in 2010 and we have so far dodged any significant activity in the tropics. It is clear from reports in the field, however, that the soft market and economic troubles in the business community continue to take a toll on written premiums, especially in the commercial property, liability and workers compensation lines. If the economy picks up later in the year, Texas may be able to avoid a second year of decline in actual written premiums, contrary to much of the rest of the country. $2,183.7 43.9% 67.9% $2,583.7 46.8% 62.9% 2007 $2,757.3 52.0% 61.2% 2006 $2,832.2 51.2% 61.3% 2005 $2,730.4 57.5% 51.1% Workers Compensation Top 20 Workers Compensation Carriers in Texas- 1 Texas Mutual 1 634.4 29.1 44.1 2 Liberty Mutual 3 238.1 10.9 49.0 3 AIG 2 178.5 8.2 54.3 4 Travelers 6 169.9 7.8 29.3 5 Hartford 4 160.9 7.4 42.3 6 Zurich 5 140.2 6.4 46.6 7 ACE INA 7 94.2 4.3 72.7 8 CNA 8 60.6 2.8 7.2 9 Service 10 48.5 2.2 43.6 10 Amerisure 11 41.6 1.9 37.9 11 Chubb 9 39.2 1.8 32.0 12 Old Republic 12 31.2 1.4 58.4 13 Republic 14 25.1 1.2 52.7 14 Zenith 13 21.7 1.0 23.7 15 Farmers 17 18.0 0.8 33.7 16 Sentry 16 17.5 0.8 28.7 17 Employers 15 15.8 0.7 33.1 18 SeaBright 18 15.4 0.7 38.7 19 Arch 22 12.7 0.6 51.2 20 W R Berkley 20 10.9 0.5 57.3 WHERE THE DATA COMES FROM We are often asked the source of the data used for this annual market share report, because our information differs from the data available from other sources and from information provided by insurers to their staff and agents. Each year, an A.M. Best subsidiary, Best Data Services, publishes the State/Line Report. The source data for this report is found on basic page 26 (statutory page 14) (Exhibit of s and es) of each insurer s sworn annual statement, prepared according to certain statutory requirements in a format dictated by the National Association of Insurance Commissioners, and filed with the Texas Department of Insurance. The resulting data differs from other sources because of the statutory nature of the report.
TOP 50 Top 50 Companies 1 State Farm 1 4,619.0 12.2 12.9 2 Farmers 2 2,913.4 7.7 8.2 3 Allstate 3 2,464.6 7.1 6.9 4 AIG 4 1,815.6 6.5 5.1 5 Liberty Mutual 5 1,588.1 4.7 4.4 6 Travelers 6 1,455.1 4.1 4.1 7 USAA 7 1,378.3 3.3 3.9 8 Progressive 8 1,230.4 3.2 3.4 9 Nationwide 10 1,037.9 2.8 2.9 10 Berkshire Hathaway 9 1,032.0 2.8 2.9 11 Zurich 11 827.5 2.8 2.3 12 Texas Farm Bureau 23 765.0 0.9 2.1 13 Hartford 13 671.4 1.9 1.9 14 Texas Mutual 12 634.4 2.1 1.8 15 ACE INA 14 628.9 1.8 1.8 16 Republic 15 600.0 1.8 1.7 17 Chubb 16 595.1 1.7 1.7 18 CNA 17 540.2 1.5 1.5 19 Old American 18 538.8 1.3 1.5 20 Allianz 21 350.3 0.9 1.0 21 Home State 22 344.8 0.9 1.0 22 Titus 20 342.1 1.0 1.0 23 Germania 25 325.6 0.8 0.9 24 Loya 28 283.4 0.7 0.8 25 Great American 24 271.7 0.8 0.8 26 Unitrin 26 267.4 0.8 0.7 27 W R Berkley 27 256.4 0.8 0.7 28 Assurant 31 237.4 0.6 0.7 29 Old Republic 29 232.5 0.7 0.7 30 FM Global 33 211.1 0.5 0.6 31 XL America 30 204.3 0.7 0.6 32 Auto Club 36 183.8 0.5 0.5 33 Tokio Marine 35 181.8 0.5 0.5 34 Endurance 32 174.3 0.6 0.5 35 Munich-American 34 168.8 0.5 0.5 36 Arch 39 165.1 0.4 0.5 37 Amer National 37 137.9 0.4 0.4 38 MetLife 42 135.5 0.3 0.4 39 Hochheim 45 131.3 0.3 0.4 40 Amica Mutual 47 128.9 0.3 0.4 41 Sentry 34 126.0 0.4 0.4 42 HCC 49 116.8 0.3 0.3 43 Alleghany 43 116.0 0.3 0.3 44 Wells Fargo 44 114.0 0.3 0.3 45 QBE Americas 62 109.8 0.2 0.3 46 Central 50 109.4 0.3 0.3 47 Mortgage Guaranty 44 108.0 0.3 0.3 48 Bank of America 40 107.1 0.4 0.3 49 Amerisure 48 101.6 0.3 0.3 50 State Auto 58 98.9 0.2 0.3