North Carolina Firm Foundation

KEY FACTS: THE INSURANCE INDUSTRY’S CONTRIBUTION TO THE NORTH CAROLINA ECONOMY

The insurance industry in North Carolina 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 73,274 jobs in North Carolina in 2013. The North Carolina insurance industry accounted for about $4.3 billion in compensation in 2013.

GROSS STATE PRODUCT

The insurance industry contributed $6.26 billion to the North Carolina gross state product (GSP) in 2012, accounting for 1.38 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in North Carolina totaled $542.6 million in 2013.

PREMIUMS

Direct premiums written by property/casualty insurance companies in North Carolina totaled $13.2 billion in 2013. In addition, premiums written by life/health insurance companies totaled $19.6 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 North Carolina surplus lines market accounted for $822.3 million in gross premiums written in 2013, 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 North Carolina as measured by direct property/casualty incurred losses, were $6.6 billion. Life insurance claims and benefits payouts in North Carolina totaled $13.1 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 hurricane, storm or wildfire. Five of the top 10 most costly hurricanes to hit the United States did damage in North Carolina: Hurricane Hugo in 1989, Hurricanes Charley, Ivan and Frances in 2004 and Hurricane Sandy in 2012. North Carolina is also heavily affected by wildfires and tornadoes. In 2014 North Carolina ranked third in the nation for wildfires with 4,625 fires that burned 15,601 acres. The state tied with Georgia and Illinois as the tenth highest state for tornadoes in 2014 with 35 storms.

LEADING WRITERS

 

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

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $398,558 6.3%
2 American International Group (AIG) 331,536 5.3
3 Liberty Mutual 306,321 4.9
4 Nationwide Mutual Group 276,332 4.4
5 Zurich Insurance Group (2) 237,172 3.8
6 Hartford Financial Services 214,242 3.4
7 W. R. Berkley Corp. 188,250 3.0
8 Cincinnati Financial Corp. 163,435 2.6
9 NC Farm Bureau Mutual Insurance Co. 159,536 2.5
10 ACE Ltd. 152,234 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 HOMEOWNERS INSURANCE IN NORTH CAROLINA BY DIRECT PREMIUMS WRITTEN, 2014 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $445,174 19.2%
2 Nationwide Mutual Group 295,968 12.8
3 NC Farm Bureau Mutual Insurance Co. 286,730 12.4
4 Allstate Corp. 171,603 7.4
5 USAA Insurance Group 161,530 7.0
6 Erie Insurance Group 126,384 5.5
7 Liberty Mutual 105,609 4.6
8 Travelers Companies Inc. 67,141 2.9
9 Auto-Owners Insurance Co. 64,459 2.8
10 Farmers Insurance Group of Companies (2) 51,774 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 SNL Financial.

Source: SNL Financial LC.

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

 

Rank Group/company Direct premiums written ($000) Market share
1 AEGON $1,640,777 10.9%
2 Prudential Financial Inc. 1,191,196 7.9
3 Massachusetts Mutual Life Insurance Co. 949,726 6.3
4 Lincoln National Corp. 910,681 6.0
5 TIAA-CREF 808,956 5.4
6 Jackson National Life Group 717,615 4.8
7 American International Group 691,274 4.6
8 MetLife Inc. 518,478 3.4
9 New York Life Insurance Group 456,959 3.0
10 Manulife Financial Corp. 422,871 2.8

(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 NORTH CAROLINA BY DIRECT PREMIUMS WRITTEN, 2014 (1)

Rank Group/company Direct premiums written ($000) Market share
1 Nationwide Mutual Group $812,804 16.6%
2 State Farm Mutual Automobile Insurance 703,902 14.4
3 NC Farm Bureau Mutual Insurance Co. 465,257 9.5
4 Berkshire Hathaway Inc. 439,325 9.0
5 Allstate Corp. 438,083 8.9
6 Integon National Group 362,322 7.4
7 USAA Insurance Group 359,131 7.3
8 Progressive Corp. 233,021 4.8
9 Liberty Mutual 168,505 3.4
10 Erie Insurance Group 167,785 3.4

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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