Minnesota Firm Foundation

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

The insurance industry in Minnesota 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 79,851 jobs in Minnesota in 2014. The Minnesota insurance industry accounted for about $7.4 billion in compensation in 2014.

GROSS STATE PRODUCT

The insurance industry contributed $10.9 billion to the Minnesota gross state product (GSP) in 2013, accounting for 3.57 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Minnesota totaled $403.3 million in 2014.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Missouri totaled $10.2 billion in 2014. In addition, premiums written by life/health insurance companies totaled $15.7 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 Minnesota surplus lines market accounted for $456.4 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 Minnesota as measured by direct property/casualty incurred losses, were $6.2 billion. Life insurance claims and benefits payouts in Minnesota totaled $10.5 billion in 2014, 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 storm or wildfire. The state has suffered damage from two of the fifteen most severe winter storms in the United States and is also prone to hail events.

 

LEADING WRITERS

 

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

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc.  $308,945 5.9%
2 Wells Fargo & Co.  244,453 4.7
3 American International Group (AIG)  229,653 4.4
4 Auto-Owners Insurance Co.  186,635 3.6
5 QBE Insurance Group Ltd.  184,090 3.5
6 Liberty Mutual  180,144 3.4
7 Zurich Insurance Group  153,619 2.9
8 ACE Ltd.  152,075 2.9
9 Chubb Corp.  132,741 2.5
10 CNA Financial Corp.  129,217 2.5

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $510,663 26.5%
2 American Family Insurance Group 261,409 13.5
3 Farmers Insurance Group of Companies (2) 166,737 8.6
4 Allstate Corp.  104,043 5.4
5 Auto-Owners Insurance Co.  102,252 5.3
6 Liberty Mutual  97,514 5.1
7 USAA Insurance Group  62,921 3.3
8 Travelers Companies Inc.  57,287 3.0
9 Nationwide Mutual Group  50,793 2.6
10 Auto Club Insurance Association Group  45,695 2.4

(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 SNL Financial.

Source: SNL Financial LC.

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

 

Rank Group/company Premiums and annuity considerations ($000) Market share
1 Securian Financial Group $884,137 8.0%
2 Lincoln National Corp. 607,804 5.5
3 Manulife Financial Corp. 578,856 5.2
4 Prudential Financial Inc. 540,688 4.9
5 Jackson National Life Group 522,095 4.7
6 Allianz Group 516,287 4.7
7 New York Life Insurance Group 459,126 4.2
8 American International Group (AIG) 419,548 3.8
9 Northwestern Mutual Life Ins. Co. 415,848 3.8
10 Principal Financial Group Inc. 377,268 3.4

(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 MINNESOTA BY DIRECT PREMIUMS WRITTEN, 2014 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $758,581 24.5%
2 Progressive Corp. 443,469 14.3
3 American Family Insurance Group 343,901 11.1
4 Farmers Insurance Group of Companies (2) 231,435 7.5
5 Allstate Corp. 181,153 5.9
6 Liberty Mutual 116,805 3.8
7 Berkshire Hathaway Inc. 90,408 2.9
8 Auto-Owners Insurance Co. 86,663 2.8
9 USAA Insurance Group 84,500 2.7
10 Nationwide Mutual Group 79,413 2.6

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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