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 81,552 jobs in Minnesota in 2015. The Minnesota insurance industry accounted for about $7.9 billion in compensation in 2015.

GROSS STATE PRODUCT

The insurance industry contributed $12.5 billion to the Minnesota gross state product (GSP) in 2014, accounting for 3.91 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Minnesota totaled $437.8 million in 2015.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Minnesota totaled $11.0 billion in 2015. In addition, premiums written by life/health insurance companies totaled $13.3 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 Minnesota surplus lines market accounted for $499.8 million 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 Minnesota as measured by direct property/casualty incurred losses, were $5.7 billion. Life insurance claims and benefits payouts in Minnesota totaled $10.8 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 storm or wildfire. Minnesota 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

 

Top 10 Writers Of Commercial Insurance In Minnesota By Direct Premiums Written, 2015 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Zurich Insurance Group (2) $418,781 7.6%
2 Travelers Companies Inc. 316,749 5.8
3 Chubb Ltd. (3) 285,493 5.2
4 American International Group (AIG) 266,766 4.8
5 Auto-Owners Insurance Co. 192,913 3.5
6 Liberty Mutual 184,826 3.4
7 QBE Insurance Group Ltd. 159,826 2.9
8 CNA Financial Corp. 136,835 2.5
9 Nationwide Mutual Group 122,425 2.2
10 Auto Club Insurance Association 120,658 2.2

(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.
(3) Chubb Ltd. data reflects the 2015 merger with Ace Ltd.

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

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Top 10 Writers Of Homeowners Insurance In Minnesota By Direct Premiums Written, 2015 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $539,756 26.8%
2 American Family Insurance Group 273,813 13.6
3 Farmers Insurance Group of Companies (2) 171,241 8.5
4 Allstate Corp.  108,665 5.4
5 Auto-Owners Insurance Co. 102,110 5.1
6 Liberty Mutual 99,119 4.9
7 USAA Insurance Group 67,252 3.3
8 Travelers Companies Inc. 64,861 3.2
9 Nationwide Mutual Group 55,328 2.7
10 Auto Club Insurance Association 47,763 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 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 Life Insurance And Annuity Considerations In Minnesota, 2015 (1)

 

Rank Group/company Premiums and annuity considerations ($000) Market share
1 Securian Financial Group   $1,013,038 8.6%
2 Massachusetts Mutual Life Insurance Co. 788,508 6.7
3 Prudential Financial Inc.   612,986 5.2
4 Lincoln National Corp.   598,278 5.1
5 Manulife Financial Corp.   567,452 4.8
6 Principal Financial Group Inc.   560,653 4.8
7 Jackson National Life Group   531,906 4.5
8 American International Group (AIG)   440,031 3.7
9 Allianz Group   422,037 3.6
10 Northwestern Mutual Life Insurance Co. 413,426 3.5

(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 Minnesota By Direct Premiums Written, 2015 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $806,997 24.9%
2 Progressive Corp. 471,436 14.5
3 American Family Insurance Group 359,351 11.1
4 Farmers Insurance Group of Companies (2) 227,109 7.0
5 Allstate Corp.  195,470 6.0
6 Liberty Mutual 117,764 3.6
7 Berkshire Hathaway Inc. 97,317 3.0
8 USAA Insurance Group 92,468 2.9
9 Auto-Owners Insurance Co. 88,124 2.7
10 Auto Club Insurance Association 88,039 2.7

(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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