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 270,730 jobs in Texas in 2015. The Texas insurance industry accounted for about $18.7 billion in compensation in 2015.

GROSS STATE PRODUCT

The insurance industry contributed $30.9 billion to the Texas gross state product (GSP) in 2014, accounting for 1.93 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Texas totaled $2.0 billion in 2015.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Texas totaled $49.1 billion in 2015. In addition, premiums written by life/health insurance companies totaled $48.6 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 Texas surplus lines market accounted for $5.2 billion in gross premiums written in 2015, 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 2015 these payments in Texas as measured by direct property/casualty incurred losses, were $29.0 billion. Life insurance claims and benefits payouts in Texas totaled $27.6 billion in 2015, 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. Texas ranked first in the nation in 2016 by estimated insured losses from catastrophes as losses totaled $8.0 billion, according to the Property Claim Services unit of Verisk. In 2016 Texas had 90 tornadoes, ranking it second in the nation. In April of 2016 the costliest hailstorm in Texas history hit the San Antonio area. The Insurance Council of Texas estimated insured losses from that storm at $1.4 billion. In 2016 Texas ranked first in the nation for wildfires with 9,300 fires. It ranked fifth for number of acres burned with 356,680 acres. In 2015 and 2016 the state experienced devastating rainfall-induced flooding which resulted in billions of dollars in economic losses. 

LEADING WRITERS

 

Top 10 Writers Of Commercial Insurance In Texas By Direct Premiums Written, 2016 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Chubb Ltd.  $1,153,256 5.1%
2 Liberty Mutual  1,130,744 5.0
3 American International Group (AIG) 1,126,774 5.0
4 Travelers Companies Inc. 1,100,186 4.9
5 Texas Mutual Insurance Co. 948,660 4.2
6 Zurich Insurance Group (2) 880,390 3.9
7 CNA Financial Corp.  872,170 3.9
8 Hartford Financial Services 584,420 2.6
9 Nationwide Mutual Group  580,226 2.6
10 AmTrust Financial Services 539,607 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 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 Texas By Direct Premiums Written, 2016 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $1,821,635 21.5%
2 Allstate Corp.                               1,074,461        12.7
3 Farmers Insurance Group of Companies (2)                                  924,610        10.9
4 USAA Insurance Group                                  852,580        10.1
5 Liberty Mutual                                  691,231          8.2
6 Travelers Companies Inc.                                  311,180          3.7
7 Nationwide Mutual Group                                  256,218          3.0
8 Texas Farm Bureau                                  239,594          2.8
9 Progressive Corp.                                  185,932          2.2
10 Chubb Ltd.                                  178,245          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.
 

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

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Top 10 Writers Of Life Insurance And Annuity Considerations In Texas, 2015 (1)

 

Rank Group/company Premiums and annuity considerations ($000) Market share
1 American International Group (AIG)   $2,825,787 8.7%
2 Jackson National Life Group   1,525,853 4.7
3 MetLife Inc.   1,437,918 4.4
4 New York Life Insurance Group   1,428,271 4.4
5 Lincoln National Corp.   1,400,075 4.3
6 Prudential Financial Inc.   1,230,902 3.8
7 Voya Financial Inc.   1,225,739 3.8
8 AEGON   1,214,884 3.7
9 Manulife Financial Corp.   1,170,454 3.6
10 Massachusetts Mutual Life Insurance Co. 1,023,529 3.2

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

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

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Top 10 Writers Of Private Passenger Auto Insurance In Texas By Direct Premiums Written, 2016 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $3,395,165 17.7%
2 Allstate Corp.  2,181,503 11.4
3 Berkshire Hathaway Inc.  2,127,633 11.1
4 Farmers Insurance Group of Cos. (2) 1,821,807 9.5
5 Progressive Corp.  1,678,250 8.8
6 USAA Insurance Group  1,500,366 7.8
7 Liberty Mutual  882,228 4.6
8 Texas Farm Bureau  672,772 3.5
9 Nationwide Mutual Group  499,951 2.6
10 Consolidated Lloyds Insurance Group  455,707 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 S&P Global Market Intelligence.

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

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