Alabama Firm Foundation

KEY FACTS: THE INSURANCE INDUSTRY’S CONTRIBUTION TO THE ALABAMA ECONOMY

The insurance industry in Alabama has a significant impact on the state’s economy that extends well beyond its responsibilities to collect premiums and settle claims. It employs licensed professionals, pays taxes, owns municipal bonds and serves people in their times of greatest need.

EMPLOYMENT

U.S. Department of Commerce data show the insurance industry provided 36,775 jobs in Alabama in 2012. The Alabama insurance industry accounted for about $ 2.3 billion in compensation in 2012.

GROSS STATE PRODUCT

The insurance industry contributed $3.5 billion to the Alabama gross state product (GSP) in 2012, accounting for 1.85 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Alabama totaled $298.0 million in 2013.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Alabama totaled $7.3 billion in 2013. In addition, premiums written by life/health insurance companies totaled $6.7 billion (including life insurance, annuities, accident and health insurance, deposit type funds and other considerations).

SURPLUS LINES

The surplus lines market, a group of highly specialized insurers exists to provide coverage that is not available through licensed insurers in the standard insurance market. For the many thousands of businesses that rely on some level of surplus line protection to keep their doors open, surplus lines is an important segment of the market. The Alabama surplus lines market accounted for $452.1 million in gross premiums written in 2012, according to a survey by Business Insurance.

CLAIMS PAYMENTS

Insurance company claims payments help ensure the economic security of individuals and businesses and help sustain a number of related industries. In 2013 these payments in Alabama as measured by direct property/casualty incurred losses, were $3.7 billion. Life insurance claims and benefits payouts in Alabama totaled $5.4 billion in 2013. On a direct basis before reinsurance. Includes life insurance, death benefits, matured endowments, annuity benefits and other life insurance benefits. Does not include accident and health.

CATASTROPHES

The insurance industry plays a vital role in helping individuals and businesses prepare for and recover from the potentially devastating effects of a disaster such as a catastrophic hurricane or storm or wildfire. The total value of insured coastal property in Alabama was $118.2 billion in 2012, accounting for 13 percent of the state’s total insurance property exposure, according to AIR Worldwide Corporation. Three of the 10 costliest hurricanes in U.S. history have impacted Alabama: hurricanes Katrina and Rita in 2005 and Hurricane Ivan in 2004. Alabama is also prone to tornadoes and wildfires.

LEADING WRITERS

 

LEADING WRITERS OF COMMERCIAL INSURANCE IN ALABAMA BY DIRECT PREMIUMS WRITTEN, 2013 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $197,366 6.4%
2 American International Group 173,195 5.7
3 Liberty Mutual 136,437 4.5
4 Zurich Insurance Group 128,128 4.2
5 Auto-Owners Insurance Co. 115,385 3.8
6 CNA Financial Corp. 102,930 3.4
7 ACE Ltd. 92,274 3.0
8 Nationwide Mutual Group 89,784 2.9
9 Cincinnati Financial Corp. 87,894 2.9
10 ProAssurance Corp. 73,673 2.4

(1) Before reinsurance transactions.

Source: SNL Financial LC.

View Archived Tables

 

 

LEADING WRITERS OF HOMEOWNERS INSURANCE IN ALABAMA BY DIRECT PREMIUMS WRITTEN, 2013 (1)

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $461,918 29.7%
2 Alfa Mutual Group 216,132 13.9
3 Allstate Corp. 164,232 10.6
4 Farmers Insurance Group of Cos. 109,888 7.1
5 Travelers Companies Inc. 89,407 5.7
6 USAA Insurance Group 84,064 5.4
7 Liberty Mutual 54,015 3.5
8 Nationwide Mutual Group 49,737 3.2
9 COUNTRY Financial 49,378 3.2
10 Auto-Owners Insurance Co. 35,207 2.3

(1) Before reinsurance transactions.

Source: SNL Financial LC.

View Archived Tables

 

LEADING WRITERS OF LIFE INSURANCE AND ANNUITY CONSIDERATIONS IN ALABAMA BY DIRECT PREMIUMS WRITTEN, 2013 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Jackson National Life Group $331,045 6.1%
2 Lincoln National Corp. 306,781 5.7
3 American International Group 291,870 5.4
4 MetLife Inc. 287,790 5.3
5 New York Life Insurance Group 247,245 4.6
6 Prudential Financial Inc. 237,983 4.4
7 Manulife Financial Corp. 187,911 3.5
8 Principal Financial Group Inc. 177,605 3.3
9 AEGON 154,399 2.9
10 Protective Life Corp. 147,631 2.7

(1) Includes life insurance, annuity consideration, deposit-type contract funds, other considerations; excludes accident and health insurance from life/health insurers. Before reinsurance transactions.

Source: SNL Financial LC.

View Archived Tables

 

LEADING WRITERS OF PRIVATE PASSENGER AUTO INSURANCE IN ALABAMA BY DIRECT PREMIUMS WRITTEN, 2013 (1)

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $604,955 23.9%
2 Alfa Mutual Group 390,185 15.4
3 Allstate Corp. 270,293 10.7
4 Berkshire Hathaway Inc. 228,534 9.0
5 Progressive Corp. 171,360 6.8
6 USAA Insurance Group 151,411 6.0
7 Nationwide Mutual Group 97,039 3.8
8 Farmers Insurance Group of Cos. 85,110 3.4
9 Liberty Mutual 62,525 2.5
10 Travelers Companies Inc. 55,880 2.2

(1) Before reinsurance transactions.

Source: SNL Financial LC.

View Archived Tables

 

 

STATE BY STATE COMPARISON TABLES

DIRECTORIES

CREATE YOUR OWN BOOK

  • Click here to create your own customized book of national and state-by-state tables
  • Click here to view Alabama data only