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 81,113 jobs in Minnesota in 2012. The Minnesota insurance industry accounted for about $7.3 billion in compensation in 2012.

GROSS STATE PRODUCT

The insurance industry contributed $10.8 billion to the Minnesota gross state product (GSP) in 2012, accounting for 3.62 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Minnesota totaled $401.0 million in 2013.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Minnesota totaled $10.2 billion in 2013. In addition, premiums written by life/health insurance companies totaled $12.6 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 Minnesota surplus lines market accounted for $356.4 million in gross premiums written in 2012, 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 Minnesota as measured by direct property/casualty incurred losses, were $6.7 billion. Life insurance claims and benefits payouts in Minnesota totaled $9.5 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 storm or wildfire. There were 1,115 wildfires in Minnesota in 2013 that burned 22,107 acres. The state has suffered damage from several of the most severe winter storms in the Midwest and is also prone to hail events. In 2013 Minnesota ranked tenth in the nation for major hail events, with 165 events.

 

LEADING WRITERS

 

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

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $299,289 5.8%
2 Wells Fargo & Co. 299,032 5.8
3 QBE Insurance Group Ltd. 219,201 4.2
4 American International Group 199,037 3.9
5 Liberty Mutual 179,632 3.5
6 ACE Ltd. 176,256 3.4
7 Auto-Owners Insurance Co. 172,413 3.3
8 Zurich Insurance Group 153,501 3.0
9 Chubb Corp. 132,447 2.6
10 CNA Financial Corp. 123,844 2.4

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $483,946 26.4%
2 American Family Mutual 250,809 13.7
3 Farmers Insurance Group of Cos. 162,175 8.8
4 Auto-Owners Insurance Co. 99,926 5.5
5 Allstate Corp. 97,012 5.3
6 Liberty Mutual 88,276 4.8
7 USAA Insurance Group 57,445 3.1
8 Travelers Companies Inc. 55,455 3.0
9 Nationwide Mutual Group 49,881 2.7
10 Auto Club Insurance Association Group 45,762 2.5

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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

 

Rank Group/company Direct premiums written ($000) Market share
1 Prudential Financial Inc. $886,771 8.0%
2 Securian Financial Group 855,231 7.7
3 Lincoln National Corp. 622,264 5.6
4 Manulife Financial Corp. 606,023 5.5
5 MetLife Inc. 539,843 4.9
6 Jackson National Life Group 494,535 4.5
7 Principal Financial Group Inc. 443,512 4.0
8 Northwestern Mutual Life Insurance Co. 411,346 3.7
9 Ameriprise Financial Inc. 397,439 3.6
10 American International Group 389,735 3.5

(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 MINNESOTA BY DIRECT PREMIUMS WRITTEN, 2013 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $703,638 23.7%
2 Progressive Corp. 409,758 13.8
3 American Family Mutual 335,542 11.3
4 Farmers Insurance Group of Cos. 250,636 8.5
5 Allstate Corp. 161,117 5.4
6 Liberty Mutual 112,373 3.8
7 Auto-Owners Insurance Co. 85,182 2.9
8 Berkshire Hathaway Inc. 82,491 2.8
9 USAA Insurance Group 77,017 2.6
10 Auto Club Insurance Association Group 76,869 2.6

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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