Arkansas Firm Foundation

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

The insurance industry in Arkansas 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 21,734 jobs in Arkansas in 2015. The Arkansas insurance industry accounted for about $1.1 billion in compensation in 2015.

GROSS STATE PRODUCT

The insurance industry contributed $1.9 billion to the Arkansas gross state product (GSP) in 2014, accounting for 1.57 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Arkansas totaled $190.9 million in 2015.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Arkansas totaled $4.7 billion in 2015. In addition, premiums written by life/health insurance companies totaled $3.9 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 Arkansas surplus lines market accounted for $23.3 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 2015 these payments in Arkansas as measured by direct property/casualty incurred losses, were $2.9 billion. Life insurance claims and benefits payouts in Arkansas totaled $2.9 billion in 2015, 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 1,837 Arkansas wildfires that burned 26,630 acres.

LEADING WRITERS

 

Leading Writers Of Commercial Insurance In Arkansas By Direct Premiums Written, 2015 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $128,039 6.0%
2 Farm Bureau Mutual Insurance Co. of Arkansas 105,337 5.0
3 CNA Financial Corp. 104,393 4.9
4 American International Group (AIG) 91,579 4.3
5 Chubb Ltd. (2) 79,884 3.8
6 Zurich Insurance Group (3) 77,163 3.6
7 Liberty Mutual 68,955 3.3
8 W. R. Berkley Corp. 68,630 3.2
9 Nationwide Mutual Group 60,985 2.9
10 American Financial Group Inc. 56,805 2.7

(1) Before reinsurance transactions.
(2) Chubb Ltd. data reflects the 2015 merger with Ace Ltd.
(3) Data for Farmers Insurance Group of Companies and Zurich Financial Group (which owns Farmers' management company) are reported separately by S&P Global Market Intelligence.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Leading Writers Of Homeowners Insurance In Arkansas By Direct Premiums Written, 2015 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $225,527 26.1%
2 Farm Bureau Mutual Insurance Co. of Arkansas 136,950 15.9
3 Allstate Corp.  71,779 8.3
4 Shelter Mutual Insurance Co. 68,951 8.0
5 Farmers Insurance Group of Companies (2) 64,190 7.4
6 USAA Insurance Group 42,141 4.9
7 Liberty Mutual 37,330 4.3
8 Nationwide Mutual Group 26,899 3.1
9 Travelers Companies Inc. 22,454 2.6
10 MetLife Inc. 15,366 1.8

(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 S&P Global Market Intelligence.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Leading Writers Of Life Insurance And Annuity Considerations In Arkansas, 2015 (1)

 

Rank Group/company Premiums and annuity considerations ($000) Market share
1 Jackson National Life Group   $177,988 6.1%
2  American International Group (AIG)  169,727 5.8
3 Prudential Financial Inc.   135,514 4.6
4 New York Life Insurance Group   131,692 4.5
5 MetLife Inc.   115,065 3.9
6 AEGON   106,542 3.7
7 Lincoln National Corp.   100,161 3.4
8 TIAA   98,755 3.4
9 Nationwide Mutual Group   97,132 3.3
10 Massachusetts Mutual Life Ins. Co.   97,024 3.3

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

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Leading Writers Of Private Passenger Auto Insurance In Arkansas By Direct Premiums Written, 2015 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $423,008 25.2%
2 Southern Farm Bureau Casualty Insurance Group 210,742 12.5
3 Shelter Mutual Insurance Co. 140,467 8.4
4 Allstate Corp.  137,545 8.2
5 Progressive Corp. 105,866 6.3
6 Berkshire Hathaway Inc. 87,614 5.2
7 Farmers Insurance Group of Companies (2) 81,986 4.9
8 USAA Insurance Group 77,321 4.6
9 Liberty Mutual 68,053 4.1
10 Nationwide Mutual Group 60,094 3.6

(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 S&P Global Market Intelligence.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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