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 35,878 jobs in Louisiana in 2015. The Louisiana insurance industry accounted for about $2.1 billion in compensation in 2015.

GROSS STATE PRODUCT

The insurance industry contributed $3.9 billion to the Louisiana gross state product (GSP) in 2014, accounting for 1.58 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Louisiana totaled $438.2 million in 2015.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Louisiana totaled $10.9 billion in 2015. In addition, premiums written by life/health insurance companies totaled $8.6 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 2015, 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 Louisiana as measured by direct property/casualty incurred losses, were $5.6 billion. Life insurance claims and benefits payouts in Louisiana totaled $5.7 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.  Louisiana experienced extensive damage in 2005’s Hurricane Katrina, the costliest hurricane to hit the United States, with a total of $48.4 billion in insured damage in all affected states (in 2015 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. In 2015 and 2016, Louisiana experienced devastating rainfall-induced flooding which resulted in billions of dollars in economic losses. In 2016, Louisiana ranked third in the nation for insured catastrophe losses, which totaled $1.2 billion, according to the Property Claim Services unit of Verisk.

 

LEADING WRITERS

 

Top 10 Writers Of Commercial Insurance In Louisiana By Direct Premiums Written, 2016 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc.  $276,661 5.5%
2 American International Group (AIG) 252,598 5.1
3 Liberty Mutual  233,745 4.7
4 CNA Financial Corp. 214,755 4.3
5 Zurich Insurance Group (2) 212,565 4.3
6 Chubb Ltd.  196,911 3.9
7 Louisiana Workers' Compensation Corp. 188,584 3.8
8 State Farm Mutual Automobile Ins. 137,506 2.8
9 Nationwide Mutual Group 110,586 2.2
10 AmTrust Financial Services  96,980 1.9

(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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Top 10 Writers Of Homeowners Insurance In Louisiana By Direct Premiums Written, 2016 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $512,993 27.7%
2 Allstate Corp.                                  220,918             11.9
3 Liberty Mutual                                  131,157               7.1
4 USAA Insurance Group                                  102,525               5.5
5 Louisiana Farm Bureau Mutual Insurance Co.                                    94,058               5.1
6 Progressive Corp.                                    71,705               3.9
7 United Insurance Holdings                                    54,275               2.9
8 Lighthouse Property Insurance Corp.                                    37,812               2.0
9 Farmers Insurance Group of Companies (2)                                    34,153               1.8
10 Chubb Ltd.                                    33,715               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.

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Top 10 Writers Of Life Insurance And Annuity Considerations In Louisiana, 2015 (1)

 

Rank Group/company Premiums and annuity considerations ($000) Market share
1 New York Life Insurance Group   $466,652 7.0%
2 Lincoln National Corp.   368,625 5.6
3 Jackson National Life Group   346,725 5.2
4 American International Group (AIG)   323,045 4.9
5 MetLife Inc.   304,764 4.6
6 Prudential Financial Inc.   251,791 3.8
7 Voya Financial Inc.   251,283 3.8
8 AEGON   207,101 3.1
9 Manulife Financial Corp.   195,772 3.0
10 Great-West Insurance Group   188,236 2.8

(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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Top 10 Writers Of Private Passenger Auto Insurance In Louisiana By Direct Premiums Written, 2016 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Ins. $1,415,980 34.2%
2 Progressive Corp.  555,453 13.4
3 Allstate Corp. 478,880 11.6
4 Berkshire Hathaway Inc.  369,492 8.9
5 Liberty Mutual 239,773 5.8
6 USAA Insurance Group  215,092 5.2
7 Southern Farm Bureau Casualty Insurance Group 209,698 5.1
8 GoAuto Insurance Co. 111,238 2.7
9 National General Holdings Corp. 90,574 2.2
10 Safeway Financial Holding Co.  60,758 1.5

(1) Before reinsurance transactions.

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

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