Kentucky Firm Foundation

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

The insurance industry in Kentucky 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 41,789 jobs in Kentucky in 2014. The Kentucky insurance industry accounted for about $2.8 billion in compensation in 2014.

GROSS STATE PRODUCT

The insurance industry contributed $4.08 billion to the Kentucky gross state product (GSP) in 2013, accounting for 2.22 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Kentucky totaled $141.6 million in 2014.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Kentucky totaled $6.7 billion in 2014. In addition, premiums written by life/health insurance companies totaled $6.4 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 Kentucky surplus lines market accounted for $182.1 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 Kentucky as measured by direct property/casualty incurred losses, were $3.7 billion. Life insurance claims and benefits payouts in Kentucky totaled $5.3 billion in 2014, on a direct basis before reinsurance. Includes life insurance, health benefits, matured endowments, annuity benefits and other life insurance benefits. Does not include accident and health.

 

LEADING WRITERS

 

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

 

Rank Group/company Direct premiums written ($000) Market share
1 Liberty Mutual  $208,968 7.2%
2 Kentucky Employers' Mutual Insurance 158,146 5.5
3 Travelers Companies Inc.  157,443 5.5
4 American International Group (AIG)  129,441 4.5
5 Zurich Insurance Group  118,527 4.1
6 Cincinnati Financial Corp.  102,055 3.5
7 Kentucky Farm Bureau Mutual Insurance Co.  99,647 3.5
8 CNA Financial Corp.  96,422 3.3
9 Chubb Corp.  70,459 2.4
10 Berkshire Hathaway Inc.  61,982 2.2

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $259,340 24.3%
2 Kentucky Farm Bureau Mutual Insurance Co.  235,475 22.0
3 Liberty Mutual  108,953 10.2
4 Allstate Corp.  76,460 7.2
5 USAA Insurance Group  43,687 4.1
6 State Auto Insurance Companies  30,258 2.8
7 Auto-Owners Insurance Co.  28,528 2.7
8 Nationwide Mutual Group  27,887 2.6
9 Travelers Companies Inc.  27,315 2.6
10 Cincinnati Financial Corp.  26,496 2.5

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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

 

Rank Group/company Premiums and annuity considerations ($000) Market share
1 MetLife Inc. $356,243 7.4%
2 Prudential Financial Inc. 334,403 6.9
3 Lincoln National Corp. 262,177 5.4
4 American International Group (AIG) 259,984 5.4
5 AEGON 258,032 5.3
6 Jackson National Life Group 243,633 5.0
7 New York Life Insurance Group 164,741 3.4
8 Nationwide Mutual Group 149,517 3.1
9 Manulife Financial Corp. 148,435 3.1
10 Allianz Group 146,170 3.0

(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 KENTUCKY BY DIRECT PREMIUMS WRITTEN, 2014 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $598,844 23.7%
2 Kentucky Farm Bureau Mutual Insurance Co. 457,404 18.1
3 Allstate Corp. 191,049 7.6
4 Liberty Mutual 180,754 7.2
5 Progressive Corp. 175,239 7.0
6 Berkshire Hathaway Inc. 164,617 6.5
7 USAA Insurance Group 113,971 4.5
8 Nationwide Mutual Group 91,560 3.6
9 State Auto Insurance Companies 53,240 2.1
10 Shelter Mutual Insurance Co. 48,873 1.9

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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