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

 

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

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $633,417 6.1%
2 Chubb Ltd. (2)                                   607,599         5.9
3 NJ Manufacturers Insurance Co.                                   581,106         5.6
4 Liberty Mutual                                   563,617         5.5
5 Hartford Financial Services                                   528,463         5.1
6 American International Group (AIG)                                   527,313         5.1
7 Zurich Insurance Group (3)                                   484,637         4.7
8 Berkshire Hathaway Inc.                                   432,442         4.2
9 Selective Insurance Group Inc.                                   417,142         4.0
10 AmTrust Financial Services                                   366,027         3.6

(1) Before reinsurance transactions.
(2) Chubb Ltd. data reflects the 2015 merger with Ace Ltd.
(3) 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 New Jersey By Direct Premiums Written, 2015 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $293,056 11.5%
2 Liberty Mutual 233,267 9.1
3 Allstate Corp. 230,094 9.0
4 NJ Manufacturers Insurance Co. 226,602 8.9
5 Chubb Ltd. (2) 186,231 7.3
6 Travelers Companies Inc. 123,513 4.8
7 Plymouth Rock of New Jersey 122,707 4.8
8 American Family Insurance Group 100,216 3.9
9 USAA Insurance Group 97,098 3.8
10 Franklin Mutual Insurance Co. 77,371 3.0

(1) Before reinsurance transactions.
(2) 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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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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Top 10 Writers Of Private Passenger Auto Insurance In New Jersey By Direct Premiums Written, 2015 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Berkshire Hathaway Inc. $1,321,895 18.6%
2 NJ Manufacturers Insurance Co. 906,558 12.8
3 Allstate Corp. 888,108 12.5
4 Progressive Corp. 726,001 10.2
5 State Farm Mutual Automobile Insurance 611,174 8.6
6 Plymouth Rock of New Jersey 566,344 8.0
7 Liberty Mutual 511,246 7.2
8 USAA Insurance Group 263,872 3.7
9 Travelers Companies Inc. 234,443 3.3
10 Farmers Insurance Group of Companies (2) 226,448 3.2

(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.

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

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