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 $26.44 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 2014 Texas had 63 tornadoes, ranking it fourth in the nation. The state ranked second for the number of hailstorms in 2014, with 557 major hail events. In 2014 Texas ranked first in the nation for wildfires with 9,677 fires. These fires burned 156,391 acres making Texas the eighth highest state by number of acres burned.

LEADING WRITERS

 

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

 

Rank Group/company Direct premiums written ($000) Market share
1 American International Group (AIG) $1,605,952 7.1%
2 Travelers Companies Inc. 1,190,324 5.3
3 Texas Mutual Insurance Co. 1,140,962 5.1
4 Liberty Mutual 1,075,716 4.8
5 Zurich Insurance Group (2) 1,011,630 4.5
6 CNA Financial Corp. 763,459 3.4
7 ACE Ltd. 685,183 3.0
8 Nationwide Mutual Group 580,669 2.6
9 Hartford Financial Services 556,396 2.5
10 Chubb Corp. 508,546 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 SNL Financial.

Source: SNL Financial LC.

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LEADING WRITERS OF HOMEOWNERS INSURANCE IN TEXAS BY DIRECT PREMIUMS WRITTEN, 2014 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $1,990,391 25.3%
2 Allstate Corp. 937,176 11.9
3 Farmers Insurance Group of Companies (2) 884,309 11.2
4 USAA Insurance Group 699,071 8.9
5 Liberty Mutual 649,588 8.3
6 Travelers Companies Inc. 275,846 3.5
7 Nationwide Mutual Group 251,199 3.2
8 Texas Farm Bureau 230,329 2.9
9 Progressive Corp. 204,413 2.6
10 Chubb Corp. 144,140 1.8

(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 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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LEADING WRITERS OF PRIVATE PASSENGER AUTO INSURANCE IN TEXAS BY DIRECT PREMIUMS WRITTEN, 2014 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $3,043,741 18.7%
2 Allstate Corp. 1,875,832 11.5
3 Farmers Insurance Group of Companies (2) 1,646,063 10.1
4 Berkshire Hathaway Inc. 1,493,926 9.2
5 Progressive Corp. 1,427,038 8.7
6 USAA Insurance Group 1,243,538 7.6
7 Home State Insurance Group Inc. 612,610 3.8
8 Texas Farm Bureau 606,959 3.7
9 Nationwide Mutual Group 530,879 3.3
10 Liberty Mutual 473,741 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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