Texas Firm Foundation

KEY FACTS: THE INSURANCE INDUSTRY’S CONTRIBUTION TO THE TEXAS ECONOMY

The insurance industry in Texas 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 259,251 jobs in Texas in 2014. The Texas insurance industry accounted for about $17.3 billion in compensation in 2014.

GROSS STATE PRODUCT

The insurance industry contributed $26.5 billion to the Texas gross state product (GSP) in 2013, accounting for 1.70 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Texas totaled $1,886.3 million in 2014.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Texas totaled $47.4 billion in 2014. In addition, premiums written by life/health insurance companies totaled $46.0 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 Texas surplus lines market accounted for $5.0 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 Texas as measured by direct property/casualty incurred losses, were $24.8 billion. Life insurance claims and benefits payouts in Texas totaled $27.6 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

Two of the costliest hurricanes to hit the United States caused damage in Texas: Hurricane Ike in 2008 and Hurricane Rita in 2005. Texas is also vulnerable to tornadoes, hailstorms and wildfires. In 2015 Texas had 228 tornadoes, ranking it first in the nation. Tornadoes killed 17 people in the state in 2015. Texas ranked first for the number of hailstorms in 2015, with 783 major hail events. In April of 2016 the largest ever insured hailstorm hit the San Antonio area. The Insurance Council of Texas estimated insured losses from that storm at $1.4 billion. In 2015 Texas ranked first in the nation for wildfires with 9,272 fires. These fires burned 184,418 acres.

LEADING WRITERS

 

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

 

Rank Group/company Direct premiums written ($000) Market share
1 American International Group (AIG) $1,453,851 6.4%
2 Chubb Ltd. (2) 1,219,983 5.3
3 Travelers Companies Inc. 1,147,509 5.0
4 Texas Mutual Insurance Co. 1,087,428 4.8
5 Zurich Insurance Group (3) 1,044,504 4.6
6 Liberty Mutual 1,014,228 4.4
7 CNA Financial Corp. 812,038 3.6
8 Nationwide Mutual Group 595,381 2.6
9 Hartford Financial Services 569,966 2.5
10 AmTrust Financial Services 522,910 2.3

(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.

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

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $1,739,354 21.8%
2 Allstate Corp. 1,028,360 12.9
3 Farmers Insurance Group of Companies (2) 852,954 10.7
4 USAA Insurance Group 760,998 9.5
5 Liberty Mutual 684,626 8.6
6 Travelers Companies Inc. 293,130 3.7
7 Nationwide Mutual Group 252,204 3.2
8 Texas Farm Bureau 239,636 3.0
9 Progressive Corp. 207,159 2.6
10 Chubb Ltd. (3) 168,126 2.1

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

Rank Group/company Premiums and annuity considerations ($000) Market share
1 American International Group (AIG) $2,158,141 6.9%
2 Prudential Financial Inc. 1,701,172 5.4
3 Jackson National Life Group 1,597,666 5.1
4 MetLife Inc. 1,505,627 4.8
5 Lincoln National Corp. 1,479,524 4.7
6 Allianz Group 1,338,431 4.3
7 New York Life Insurance Group 1,315,027 4.2
8 AEGON 1,209,752 3.8
9 Manulife Financial Corp. 1,178,545 3.7
10 Voya Financial Inc. 1,056,742 3.4

(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 Texas By Direct Premiums Written, 2015 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $3,168,382 18.1%
2 Allstate Corp. 2,039,446 11.6
3 Berkshire Hathaway Inc. 1,770,417 10.1
4 Farmers Insurance Group of Companies (2) 1,719,971 9.8
5 Progressive Corp. 1,499,218 8.6
6 USAA Insurance Group 1,338,844 7.6
7 Home State Insurance Group Inc. 705,717 4.0
8 Texas Farm Bureau 631,629 3.6
9 Liberty Mutual 510,570 2.9
10 Nationwide Mutual Group 505,297 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 S&P Global Market Intelligence.

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

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