Arizona Firm Foundation

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

The insurance industry in Arizona 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 59,953 jobs in Arizona in 2014. The Arizona insurance industry accounted for about $3.7 billion in compensation in 2014.

GROSS STATE PRODUCT

The insurance industry contributed $7.9 billion to the Arizona gross state product (GSP) in 2013, accounting for 2.89 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Arizona totaled $448.1 million in 2014.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Arizona totaled $9.1 billion in 2014. In addition, premiums written by life/health insurance companies totaled $12.3 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 Arizona surplus lines market accounted for $436.4 million in gross premiums written in 2014, 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 2014 these payments in Arizona as measured by direct property/casualty incurred losses, were $5.4 billion. Life insurance claims and benefits payouts in Arizona totaled $8.7 billion in 2014, on a direct basis before reinsurance, and 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. In 2015 there were 1,662 Arizona wildfires that burned 160,152 acres. That year Arizona ranked eighth in the nation for number of acres burned.

LEADING WRITERS

 

LEADING WRITERS OF COMMERCIAL INSURANCE IN ARIZONA BY DIRECT PREMIUMS WRITTEN, 2014 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc.  $288,594 7.6%
2 CopperPoint Mutual Insurance Co.  223,334 5.9
3 Liberty Mutual  216,255 5.7
4 American International Group (AIG)  190,405 5.0
5 Zurich Insurance Group  158,516 4.2
6 CNA Financial Corp.  135,121 3.6
7 Farmers Insurance Group of Cos. (2)  122,559 3.2
8 Nationwide Mutual Group  118,757 3.1
9 Mutual Insurance Co. of Arizona 110,403 2.9
10 Hartford Financial Services  106,585 2.8

(1) Before reinsurance transactions.
(2) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are reported separately by SNL Financial.

Source: SNL Financial LC.

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LEADING WRITERS OF HOMEOWNERS INSURANCE IN ARIZONA BY DIRECT PREMIUMS WRITTEN, 2014 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $295,480 20.4%
2 Farmers Insurance Group of Companies (2) 204,731 14.2
3 Allstate Corp.  154,231 10.7
4 USAA Insurance Group  108,774 7.5
5 American Family Insurance Group 107,838 7.5
6 Liberty Mutual  100,766 7.0
7 Hartford Financial Services  42,608 3.0
8 Travelers Companies Inc.  42,553 2.9
9 MetLife Inc.  32,222 2.2
10 CSAA Insurance Exchange  31,258 2.2

(1) Before reinsurance transactions.
(2) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are reported separately by SNL Financial.

Source: SNL Financial LC.

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LEADING WRITERS OF LIFE INSURANCE AND ANNUITY CONSIDERATIONS IN ARIZONA, 2014 (1)

Rank Group/company Premiums and annuity considerations ($000) Market share
1 Prudential Financial Inc. $1,394,824 15.7%
2 MetLife Inc. 469,902 5.3
3 American International Group (AIG) 461,858 5.2
4 Jackson National Life Group 459,786 5.2
5 Lincoln National Corp. 398,517 4.5
6 Allianz Group 355,441 4.0
7 New York Life Insurance Group 349,800 3.9
8 Pacific MHC 340,307 3.8
9 Nationwide Mutual Group 325,684 3.7
10 AEGON 294,912 3.3

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

Source: SNL Financial LC.

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LEADING WRITERS OF PRIVATE PASSENGER AUTO INSURANCE IN ARIZONA BY DIRECT PREMIUMS WRITTEN, 2014 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $660,267 17.5%
2 Berkshire Hathaway Inc. 484,223 12.8
3 Progressive Corp. 375,782 9.9
4 Farmers Insurance Group of Companies (2) 355,820 9.4
5 Allstate Corp. 325,005 8.6
6 USAA Insurance Group 269,314 7.1
7 American Family Insurance Group 227,985 6.0
8 Liberty Mutual 199,259 5.3
9 Hartford Financial Services 104,639 2.8
10 CSAA Insurance Exchange 80,634 2.1

(1) Before reinsurance transactions.
(2) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are reported separately by SNL Financial.

Source: SNL Financial LC.

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