Louisiana Firm Foundation

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

The insurance industry in Louisiana 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 34,555 jobs in Louisiana in 2013. The Louisiana insurance industry accounted for about $2.0 billion in compensation in 2013.

GROSS STATE PRODUCT

The insurance industry contributed $3.7 billion to the Louisiana gross state product (GSP) in 2012, accounting for 1.48 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Louisiana totaled $399.6 million in 2013.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Louisiana totaled $10.4 billion in 2013. In addition, premiums written by life/health insurance companies totaled $8.3 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 Louisiana surplus lines market accounted for $1.4 billion in gross premiums written in 2013, 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 Louisiana as measured by direct property/casualty incurred losses, were $5.4 billion. Life insurance claims and benefits payouts in Louisiana totaled $5.7 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.  Louisiana experience extensive damage in 2005’s Hurricane Katrina, the costliest hurricane to hit the U.S, with a total of $47.4 billion in insured damage in all affected states (in 2012 dollars). The insured value of properties in coastal areas of Louisiana totaled $293.5 billion in 2012, according to an analysis by AIR Worldwide. Louisiana is also vulnerable to wildfires and tornadoes.

 

LEADING WRITERS

 

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

 

Rank Group/company Direct premiums written ($000) Market share
1 American International Group $315,785 6.2%
2 Travelers Companies Inc. 294,774 5.8
3 Liberty Mutual 259,424 5.1
4 Zurich Insurance Group 236,869 4.7
5 CNA Financial Corp. 206,593 4.1
6 Louisiana Workers' Comp Corp. 185,313 3.7
7 ACE Ltd. 164,340 3.3
8 LA Citizens Property Insurance Corp. 138,754 2.7
9 State Farm Mutual Automobile Insurance 128,844 2.6
10 Nationwide Mutual Group 110,590 2.2

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $495,232 28.3%
2 Allstate Corp. 227,751 13.0
3 Liberty Mutual 124,987 7.1
4 LA Farm Bureau Mutual Insurance Co. 94,800 5.4
5 ARX Holding Corp. 87,609 5.0
6 USAA Insurance Group 80,654 4.6
7 Lighthouse Property Insurance Corp. 46,197 2.6
8 LA Citizens Property Insurance Corp. 40,246 2.3
9 Farmers Insurance Group of Cos. 40,014 2.3
10 Southern Fidelity Insurance Co. 29,910 1.7

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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

 

Rank Group/company Direct premiums written ($000) Market share
1 New York Life Insurance Group $414,366 6.4%
2 Lincoln National Corp. 370,353 5.7
3 Jackson National Life Group 329,997 5.1
4 MetLife Inc. 317,507 4.9
5 Prudential Financial Inc. 302,003 4.7
6 American International Group 280,345 4.3
7 Voya Financial Inc. 251,503 3.9
8 Guggenheim Capital LLC 244,779 3.8
9 Great-West Insurance Group 212,402 3.3
10 Hartford Financial Services 184,833 2.9

(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 LOUISIANA BY DIRECT PREMIUMS WRITTEN, 2013 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $1,123,876 32.1%
2 Progressive Corp. 479,452 13.7
3 Allstate Corp. 433,542 12.4
4 Berkshire Hathaway Inc. 290,938 8.3
5 Southern Farm Bureau Casualty Insurance Group 183,816 5.3
6 Liberty Mutual 175,339 5.0
7 USAA Insurance Group 164,269 4.7
8 Affirmative Insurance Holdings 119,828 3.4
9 GoAuto Insurance Co. 58,161 1.7
10 Safeway Financial Holding Co. 53,519 1.5

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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