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 22,031 jobs in Arkansas in 2012. The Arkansas insurance industry accounted for about $1.0 billion in compensation in 2012.

GROSS STATE PRODUCT

The insurance industry contributed $1.6 billion to the Arkansas gross state product (GSP) in 2012, accounting for 1.35 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Arkansas totaled $163.0 million in 2013.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Arkansas totaled $4.5 billion in 2013. In addition, premiums written by life/health insurance companies totaled $3.8 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 $193.6 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 Arkansas as measured by direct property/casualty incurred losses, were $2.4 billion. Life insurance claims and benefits payouts in Arkansas totaled $2.8 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. In 2013 there were 881 Arkansas wildfires that burned 14,733 acres.

 

LEADING WRITERS

 

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

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $132,656 6.4%
2 Farm Bureau Mutual Insurance Co. of Arkansas 104,911 5.1
3 American International Group 104,668 5.1
4 CNA Financial Corp. 94,486 4.6
5 Liberty Mutual 91,169 4.4
6 Zurich Insurance Group 62,265 3.0
7 W. R. Berkley Corp. 62,201 3.0
8 American Financial Group Inc. 57,068 2.8
9 Nationwide Mutual Group 51,520 2.5
10 ACE Ltd. 50,643 2.5

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $195,713 24.4%
2 Farm Bureau Mutual Insurance Co. of Arizona 141,411 17.6
3 Allstate Corp. 66,378 8.3
4 Farmers Insurance Group of Cos. 65,454 8.2
5 Shelter Mutual Insurance Co. 63,920 8.0
6 USAA Insurance Group 32,776 4.1
7 Travelers Companies Inc. 30,605 3.8
8 Nationwide Mutual Group 26,059 3.3
9 Liberty Mutual 25,296 3.2
10 MetLife Inc. 14,989 1.9

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $375,632 24.3%
2 Southern Farm Bureau Casualty Insurance Group 206,211 13.3
3 Shelter Mutual Insurance Co. 125,867 8.1
4 Allstate Corp. 117,277 7.6
5 Progressive Corp. 93,506 6.0
6 Farmers Insurance Group of Cos. 92,138 6.0
7 Berkshire Hathaway Inc. 81,793 5.3
8 USAA Insurance Group 67,526 4.4
9 Nationwide Mutual Group 61,861 4.0
10 Liberty Mutual 44,950 2.9

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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

 

Rank Group/company Direct premiums written ($000) Market share
1 Jackson National Life Group $178,846 6.5%
2 MetLife Inc. 158,102 5.7
3 American International Group 145,506 5.3
4 Lincoln National Corp. 122,305 4.4
5 TIAA-CREF 110,504 4.0
6 Manulife Financial Corp. 103,436 3.7
7 Guggenheim Capital LLC 99,831 3.6
8 Prudential Financial Inc. 98,174 3.5
9 AEGON 90,424 3.3
10 New York Life Insurance Group 88,326 3.2

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

Source: SNL Financial LC.

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