Virginia Firm Foundation

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

The insurance industry in Virginia 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 59,368 jobs in Virginia in 2012. The Virginia insurance industry accounted for about $4.1 billion in compensation in 2012.

GROSS STATE PRODUCT

The insurance industry contributed $5.7 billion to the Virginia gross state product (GSP) in 2012, accounting for 1.29 percent of the state GSP.

TAXES

Premium taxes paid by insurance companies in Virginia totaled $392.4 million in 2013.

PREMIUMS

Direct premiums written by property/casualty insurance companies in Virginia totaled $11.0 billion in 2012. In addition, premiums written by life/health insurance companies totaled $17.0 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 Virginia surplus lines market accounted for $605.4 million in gross premiums written in 2012, 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 2012 these payments in Virginia as measured by direct property/casualty incurred losses, were $6.3 billion. Life insurance claims and benefits payouts in Virginia totaled $10.2 billion in 2012. 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 or storm or wildfire. The insured value of properties in coastal areas of Virginia totaled $176.7 billion in 2012, according to an analysis by AIR Worldwide, accounting for 10 percent of the state’s total insured property exposure.

 

THE TEN MOST COSTLY HURRICANES IN THE UNITED STATES (1)

($ millions)

        Estimated insured loss (2)
Rank Date Location Hurricane Dollars when
occurred
In 2013
dollars (3)
1 Aug. 25-30, 2005 AL, FL, GA, LA, MS, TN Hurricane Katrina $41,100 $47,622
2 Aug. 24-26, 1992 FL, LA Hurricane Andrew 15,500 23,386
3 Oct. 28-31, 2012 CT, DC, DE, MA, MD, ME, NC, NH,
NJ, NY, OH, PA, RI, VA, VT, WV
Hurricane Sandy 18,750 19,033
4 Sep. 12-14, 2008 AR, IL, IN, KY, LA, MO, OH, PA, TX Hurricane Ike 12,500 13,426
5 Oct. 24, 2005 FL Hurricane Wilma 10,300 11,934
6 Aug. 13-14, 2004 FL, NC, SC Hurricane Charley 7,475 8,939
7 Sep. 15-21, 2004 AL, DE, FL, GA, LA, MD, MS, NC, NJ,
NY, OH, PA, TN, VA, WV
Hurricane Ivan 7,110 8,502
8 Sep. 17-22, 1989 GA, NC, PR, SC, UV, VA Hurricane Hugo 4,195 6,937
9 Sep. 20-26, 2005 AL, AR, FL, LA, MS, TN, TX Hurricane Rita 5,627 6,520
10 Sep. 3-9, 2004 FL, GA, NC, NY, SC Hurricane Frances 4,595 5,495

(1) Includes hurricanes occurring through 2013.                    
(2) Property coverage only. Does not include flood damage covered by the federally adminstered National Flood Insurance Program.                    
(3) Adjusted for inflation through 2013 by ISO using the GDP implicit price deflator.                    
                    
Source: The Property Claim Services® (PCS®) unit of ISO, a Verisk Analytics company.

 

 

ESTIMATED VALUE OF INSURED COASTAL PROPERTIES VULNERABLE TO HURRICANES BY STATE, 2012 (1)

($ billions)

Rank State Coastal Total exposure (2) Coastal as a
percent of total
1 New York  $2,923.1 $4,724.2 62%
2 Florida  2,862.3 3,640.1 79
3 Texas  1,175.3 4,580.7 26
4 Massachusetts  849.6 1,561.4 54
5 New Jersey  713.9 2,129.9 34
6 Connecticut  567.8 879.1 65
7 Louisiana  293.5 823.0 36
8 South Carolina  239.3 843.6 28
9 Virginia  182.3 1,761.7 10
10 Maine  164.6 285.5 58
11 North Carolina  163.5 1,795.1 9
12 Alabama  118.2 917.8 13
13 Georgia  106.7 1,932.2 6
14 Delaware  81.9 208.9 39
15 New Hampshire  64.0 278.7 23
16 Mississippi  60.6 468.5 13
17 Rhode Island  58.3 207.5 28
18 Maryland  17.3 1,293.4 1
  All states above  $10,642.2 $28,331.4 38%
  Total U.S.  $10,642.2 $64,624.3 16%

(1) Includes residential and commercial properties, as of December 31, 2012. Ranked by value of insured coastal property.
(2) Total exposure is an estimate of the actual total value of all property in the state that is insured or can be insured, including the full replacement value of structures and their contents, additional living expenses and the time value of business interruption coverage.

Source: AIR Worldwide.

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LEADING WRITERS

 

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

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $396,300 20.5%
2 USAA Insurance Group 290,200 15.0
3 Allstate Corp. 203,258 10.5
4 Travelers Companies Inc. 197,716 10.2
5 Nationwide Mutual Group 181,503 9.4
6 Liberty Mutual 105,410 5.5
7 Erie Insurance Group 102,761 5.3
8 Farmers Insurance Group of Cos. 53,371 2.8
9 VA Farm Bureau Federation 48,068 2.5
10 Chubb Corp. 32,146 1.7

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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

Rank Group/company Direct premiums written ($000) Market share
1 American International Group $389,088 7.7%
2 Travelers Companies Inc. 365,056 7.2
3 Liberty Mutual 269,036 5.3
4 Nationwide Mutual Group 231,731 4.6
5 Zurich Insurance Group 222,649 4.4
6 Hartford Financial Services 207,954 4.1
7 Erie Insurance Group 177,278 3.5
8 CNA Financial Corp. 160,869 3.2
9 ACE Ltd. 143,160 2.8
10 Chubb Corp. 139,677 2.8

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $759,882 16.8%
2 Berkshire Hathaway Inc. 732,731 16.2
3 USAA Insurance Group 576,662 12.8
4 Allstate Corp. 459,535 10.2
5 Nationwide Mutual Group 439,835 9.7
6 Progressive Corp. 384,024 8.5
7 Erie Insurance Group 157,420 3.5
8 Liberty Mutual 147,223 3.3
9 VA Farm Bureau Federation 108,343 2.4
10 Travelers Companies Inc. 85,236 1.9

(1) Before reinsurance transactions.

Source: SNL Financial LC.

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LEADING WRITERS OF LIFE INSURANCE AND ANNUITY CONSIDERATIONS IN VIRGINIA BY DIRECT PREMIUMS WRITTEN, 2012 (1)

Rank Group Direct premiums written ($000) Market share
1 Prudential Financial Inc. $1,513,739 12.0%
2 MetLife Inc. 858,381 6.8
3 Massachusetts Mutual Life Insurance Co. 740,714 5.9
4 Jackson National Life Group 712,134 5.6
5 Manulife Financial Corp. 626,828 5.0
6 Lincoln National Corp. 595,575 4.7
7 Principal Financial Group Inc. 544,583 4.3
8 New York Life Insurance Group 494,018 3.9
9 American International Group 484,179 3.8
10 AEGON NV 465,533 3.7

(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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STATE BY STATE COMPARISON TABLES

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