California Firm Foundation

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

The insurance industry in California 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 293,807 jobs in California in 2012. The California insurance industry accounted for about $21.2 billion in compensation in 2012.

GROSS STATE PRODUCT

The insurance industry contributed $30.6 billion to the California gross state product (GSP) in 2012, accounting for 1.44 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in California totaled $2,242.4 million in 2013.

PREMIUMS

Direct premiums written by property/casualty insurance companies in California totaled $61.7 billion in 2013. In addition, premiums written by life/health insurance companies totaled $59.9 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 California surplus lines market accounted for $5.1 billion 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 California as measured by direct property/casualty incurred losses, were $33.5 billion. Life insurance claims and benefits payouts in California totaled $43.9 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

Insurers help defray the cost of natural disasters. Six of the 10 most costly U.S. earthquakes occurred in California, topped by the 1994 Northridge earthquake, which caused $24.1 billion in insured damages in 2013 dollars, according to Munich Re. Seven of the 10 largest wildfires also occurred in California, topped by the 1991 Oakland fire, which caused $2.6 billion in insured damages in 2012 dollars, according to ISO. In 2013 California had the highest number of wildfires in the nation, 9,907. These fires burned 577,675 acres, the third-highest state by number of acres burned.

 

LEADING WRITERS

 

LEADING WRITERS OF COMMERCIAL PROPERTY/CASUALTY INSURANCE IN CALIFORNIA BY DIRECT PREMIUMS WRITTEN, 2013 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $2,009,943 6.0%
2 American International Group 1,939,949 5.8
3 Liberty Mutual 1,904,504 5.7
4 Zurich Insurance Group 1,584,420 4.7
5 Farmers Insurance Group of Cos. 1,331,763 4.0
6 Hartford Financial Services 1,178,633 3.5
7 Berkshire Hathaway Inc. 1,172,217 3.5
8 State Compensation Insurance Fund 1,112,518 3.3
9 Chubb Corp. 1,010,404 3.0
10 Nationwide Mutual Group 1,008,059 3.0

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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LEADING WRITERS OF EARTHQUAKE INSURANCE IN CALIFORNIA BY DIRECT PREMIUMS WRITTEN, 2013 (1)

Rank Company/group Direct premiums written ($000)  Market share
1 CA Earthquake Authority $573,960 35.1%
2 Zurich Insurance Group  159,817 9.8
3 GeoVera Insurance Holdings Ltd  97,637 6.0
4 American International Group  58,942 3.6
5 ACE Ltd. 56,880 3.5
6 Swiss Re Ltd 51,535 3.2
7 ICW Group  43,123 2.6
8 Arch Capital Group Ltd.  39,846 2.4
9 Chubb Corp.  37,951 2.3
10 Endurance Specialty Holdings  37,658 2.3

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $1,487,506 21.1%
2 Farmers Insurance Group of Cos. 1,146,424 16.2
3 Allstate Corp. 604,475 8.6
4 CSAA Insurance Exchange 452,487 6.4
5 Liberty Mutual 405,157 5.7
6 Auto Club Exchange Group 378,453 5.4
7 USAA Insurance Group 340,605 4.8
8 Nationwide Mutual Group 271,670 3.9
9 Mercury General Corp. 252,688 3.6
10 Travelers Companies Inc. 224,081 3.2

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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

 

Rank Group/company Direct premiums written ($000) Market share
1 Prudential Financial Inc. $4,101,159 8.9%
2 AEGON 2,599,275 5.7
3 Jackson National Life Group 2,500,310 5.4
4 Manulife Financial Corp. 2,313,530 5.0
5 Lincoln National Corp. 2,229,132 4.8
6 New York Life Insurance Group 2,228,865 4.8
7 MetLife Inc. 2,214,453 4.8
8 American International Group 2,211,396 4.8
9 Voya Financial Inc. 1,499,032 3.3
10 Principal Financial Group Inc. 1,365,152 3.0

(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.

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

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $2,863,700 14.0%
2 Farmers Insurance Group of Cos. 2,699,254 13.2
3 Allstate Corp. 1,838,313 9.0
4 Mercury General Corp. 1,734,647 8.5
5 Auto Club Exchange Group 1,718,429 8.4
6 CSAA Insurance Exchange 1,353,093 6.6
7 Berkshire Hathaway Inc. 1,327,427 6.5
8 USAA Insurance Group 892,539 4.4
9 Progressive Corp. 838,645 4.1
10 Liberty Mutual 738,797 3.6

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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