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 245,704 jobs in Texas in 2012. The Texas insurance industry accounted for about $15.0 billion in compensation in 2012.

GROSS STATE PRODUCT

The insurance industry contributed $24.7 billion to the Texas gross state product (GSP) in 2012, accounting for 1.69 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Texas totaled $1,788.5 billion in 2013.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Texas totaled $44.5 billion in 2013. In addition, premiums written by life/health insurance companies totaled $43.5 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 $4.9 billion 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 Texas as measured by direct property/casualty incurred losses, were $23.7 billion. Life insurance claims and benefits payouts in Texas totaled $25.7 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

Two of the costliest hurricanes to hit the U.S. caused damage in Texas: Hurricane Ike in 2008 and Hurricane Rita in 2005. Texas is also vulnerable to tornadoes, hailstorms and wildfires. In 2013 Texas had 65 tornadoes, ranking it second in a tie with Nebraska. The state ranked first in the nation for the number of hailstorms in 2013, with 651 major hail events.

 

LEADING WRITERS

 

LEADING WRITERS OF COMMERCIAL INSURANCE IN TEXAS BY DIRECT PREMIUMS WRITTEN, 2013 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 American International Group $1,574,738 7.4%
2 Travelers Companies Inc. 1,188,312 5.6
3 Liberty Mutual 1,091,016 5.1
4 Texas Mutual Insurance Co. 1,031,357 4.9
5 Zurich Insurance Group 1,015,595 4.8
6 CNA Financial Corp. 725,412 3.4
7 ACE Ltd. 658,808 3.1
8 Hartford Financial Services 554,416 2.6
9 Nationwide Mutual Group 524,489 2.5
10 Chubb Corp. 486,359 2.3

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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LEADING WRITERS OF HOMEOWNERS INSURANCE IN TEXAS BY DIRECT PREMIUMS WRITTEN, 2013 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $1,920,866 26.6%
2 Farmers Insurance Group of Cos. 851,139 11.8
3 Allstate Corp. 841,027 11.6
4 USAA Insurance Group 625,471 8.7
5 Liberty Mutual 566,059 7.8
6 Travelers Companies Inc. 271,938 3.8
7 Nationwide Mutual Group 234,812 3.3
8 Texas Farm Bureau 204,699 2.8
9 ARX Holding Corp. 172,032 2.4
10 Chubb Corp. 136,570 1.9

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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

Rank Group/company Direct premiums written ($000) Market share
1 American International Group $1,943,897 6.5%
2 MetLife Inc. 1,676,016 5.6
3 Lincoln National Corp. 1,570,836 5.2
4 Jackson National Life Group 1,430,674 4.8
5 Prudential Financial Inc. 1,278,717 4.3
6 Manulife Financial Corp. 1,204,907 4.0
7 New York Life Insurance Group 1,194,304 4.0
8 AEGON 1,125,712 3.8
9 Voya Financial Inc. 1,106,831 3.7
10 Principal Financial Group Inc. 1,010,374 3.4

(1) Includes life insurance, annuity consideration, deposit-type contract funds, other considerations; excludes accident and health insurance from life/health insurers. Before reinsurance transactions.

 

 

LEADING WRITERS OF PRIVATE PASSENGER AUTO INSURANCE IN TEXAS BY DIRECT PREMIUMS WRITTEN, 2013 (1)

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $2,923,827 19.2%
2 Allstate Corp. 1,711,014 11.3
3 Farmers Insurance Group of Cos. 1,651,484 10.9
4 Progressive Corp. 1,329,425 8.7
5 Berkshire Hathaway Inc. 1,238,185 8.1
6 USAA Insurance Group 1,145,519 7.5
7 Texas Farm Bureau 570,737 3.8
8 Nationwide Mutual Group 540,909 3.6
9 Home State Insurance Group Inc. 528,694 3.5
10 Orpheus Group Ltd. 457,374 3.0

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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