New Jersey Firm Foundation

KEY FACTS: THE INSURANCE INDUSTRY’S CONTRIBUTION TO THE NEW JERSEY ECONOMY

The insurance industry in New Jersey 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 98,774 jobs in New Jersey in 2014. The New Jersey insurance industry accounted for about $10.4 billion in compensation in 2014.

GROSS STATE PRODUCT

The insurance industry contributed $19.7 billion to the New Jersey gross state product (GSP) in 2013, accounting for 3.69 percent of the state GSP.

TAXES

All insurance companies pay a state tax based on their premiums. Other payments are made to states for licenses and fees, income and property taxes, sales and use taxes, unemployment compensation taxes and franchise taxes. Premium taxes paid by insurance companies in New Jersey totaled $599.2 million in 2014.

PREMIUMS

Direct premiums written by property/casualty insurance companies in New Jersey totaled $19.7 billion in 2014. In addition, premiums written by life/health insurance companies totaled $28.3 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 New Jersey surplus lines market accounted for $1.6 billion 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 New Jersey as measured by direct property/casualty incurred losses, were $11.1 billion. Life insurance claims and benefits payouts in New Jersey totaled $21.0 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 hurricane or storm or wildfire. New Jersey suffered damage in two of the top ten costliest hurricanes: Hurricane Ivan in 2004 and Hurricane Sandy in 2012. Hurricane Sandy caused extensive damage in New Jersey as well as to New York, Pennsylvania and Connecticut. Sandy caused 72 deaths in the U.S. and $18.75 billion in insured property losses in 15 states and the District of Columbia, not including National Flood Insurance Program (NFIP) losses, according to the Property Claim Services (PCS) unit of ISO. This makes it the third costliest U.S. hurricane, topped only by Hurricane Katrina in 2005 and Hurricane Andrew in 1992.

LEADING WRITERS

 

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

 

Rank Group/company Direct premiums written ($000) Market share
1 NJ Manufacturers Insurance Co. $644,494 6.4%
2 Travelers Companies Inc. 597,139 5.9
3 Liberty Mutual 583,526 5.8
4 American International Group (AIG) 565,054 5.6
5 Hartford Financial Services 511,673 5.1
6 Zurich Insurance Group (2) 439,719 4.4
7 Berkshire Hathaway Inc. 398,167 3.9
8 Selective Insurance Group Inc. 397,426 3.9
9 Chubb Corp. 355,459 3.5
10 Nationwide Mutual Group 317,174 3.1

(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 HOMEOWNERS INSURANCE IN NEW JERSEY BY DIRECT PREMIUMS WRITTEN, 2014 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $292,778 11.8%
2 Liberty Mutual 226,029 9.1
3 Allstate Corp. 220,985 8.9
4 NJ Manufacturers Insurance Co. 204,497 8.2
5 Chubb Corp. 167,562 6.8
6 Plymouth Rock Co. 126,884 5.1
7 Travelers Companies Inc. 121,852 4.9
8 American Family Mutual 96,092 3.9
9 USAA Insurance Group 92,305 3.7
10 Franklin Mutual Insurance Co. 78,969 3.2

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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

 

Rank Group/company Premiums and annuity considerations ($000) Market share
1 Prudential Financial Inc. $4,103,994 18.8%
2 MetLife Inc. 1,562,076 7.2
3 Jackson National Life Group 1,173,829 5.4
4 AEGON 1,124,899 5.2
5 AXA 1,062,851 4.9
6 American International Group (AIG) 910,879 4.2
7 Lincoln National Corp. 909,457 4.2
8 New York Life Insurance Group 824,473 3.8
9 Massachusetts Mutual Life Ins. Co. 771,795 3.5
10 TIAA-CREF 675,884 3.1

(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 NEW JERSEY BY DIRECT PREMIUMS WRITTEN, 2014 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Berkshire Hathaway Inc. $1,210,737 17.4%
2 NJ Manufacturers Insurance Co. 930,517 13.4
3 Allstate Corp. 902,770 13.0
4 Progressive Corp. 679,007 9.8
5 State Farm Mutual Automobile Insurance 601,778 8.6
6 Plymouth Rock Co. 544,497 7.8
7 Liberty Mutual 527,221 7.6
8 USAA Insurance Group 247,983 3.6
9 Travelers Companies Inc. 223,022 3.2
10 Farmers Insurance Group of Companies (2) 204,796 2.9

(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 SNL Financial.

Source: SNL Financial LC.

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