Facts + Statistics: Industry overview

 
Property/Casualty And Life/Annuity Insurance Premiums, 2020 (1)

($ billions)

(1) Property/casualty: net premiums written after reinsurance transactions, excludes state funds; life/annuity: premiums, annuity considerations (fees for annuity contracts) and deposit-type funds. Both sectors include accident and health insurance.

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

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Employment In Insurance, 2012-2021

(Annual averages, 000)

  Insurance carriers Insurance agencies, brokerages and related services  
  Direct insurers (1)            
Year Life and
health (2)
Property/
casualty
Reinsurers Total Insurance
agencies
and brokers
Other
insurance-
related
activities (3)
Total Total
industry
2012 811.3 599.5 25.7 1,436.4 659.6 272.3 931.8 2,368.3
2013 813.2 593.7 26.2 1,433.1 672.3 283.5 955.8 2,388.9
2014 829.0 594.7 25.1 1,448.7 720.0 297.1 1,017.1 2,465.8
2015 829.8 611.6 25.1 1,466.5 762.8 309.1 1,071.8 2,538.3
2016 818.9 643.5 25.3 1,487.7 783.5 321.5 1,105.0 2,592.7
2017 850.4 639.7 26.6 1,516.7 809.6 333.3 1,142.9 2,659.6
2018 882.8 629.5 28.6 1,540.9 825.6 346.2 1,171.8 2,712.7
2019 931.2 650.3 28.6 1,610.1 842.8 349.5 1,192.2 2,802.3
2020 945.6 653.9 27.6 1,627.1 856.5 352.3 1,208.8 2,835.9
2021 911.4 628.6 26.9 1,566.9 881.5 353.2 1,234.6 2,801.5

(1) Establishments primarily engaged in initially underwriting insurance policies.
(2) Includes establishments engaged in underwriting annuities, life insurance and health and medical insurance policies.
(3) Includes claims adjusters, third-party administrators of insurance funds and other service personnel such as advisory and insurance ratemaking services.

Source: U.S. Department of Labor, Bureau of Labor Statistics.

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A property/casualty insurer must maintain a certain level of surplus to underwrite risks. This financial cushion is known as “capacity.” When the industry is hit by high losses, such as a major hurricane, capacity is diminished. It can be restored by increases in net income, favorable investment returns, reinsuring more risk, and/or raising additional capital.

 
Property/Casualty Insurance Industry Income Analysis, 2016-2020

($ billions)

  2016 2017 2018 2019 2020
Net premiums written  $534.0 $558.4 $618.3 $639.5 $655.5
     Percent change 2.6% 4.6% 10.7% 3.4% 2.5%
Premiums earned  $529.2 $546.4 $599.7 $627.3 $642.7
Losses and loss adjustment expenses incurred 382.5 414.7 428.3 445.6 450.8
Other underwriting expenses 148.0 151.1 167.7 172.5 179.3
Policyholder dividends 2.9 3.3 3.7 4.9 7.7
Net underwriting gain/loss -2.4 -20.8 2.6 7.8 11.9
Net investment income 47.5 49.7 57.0 56.3 53.4
Miscellaneous income/loss -2.4 -9.0 -2.4 -2.5 -1.9
Operating income 43.1 20.2 57.3 60.5 59.0
Realized capital gain 8.5 19.6 10.7 11.0 10.4
Federal income tax 7.3 -0.8 7.2 8.5 8.7
Net income after taxes 44.3 40.6 60.8 63.1 60.7

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

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Top 10 Writers Of Property/Casualty Insurance By Direct Premiums Written, 2021

($000)

Rank Group/company Direct premiums written (1) Market share (2)
1 State Farm  $70,311,695 8.9%
2 Berkshire Hathaway Inc. 51,603,818 6.5
3 Progressive Corp. 48,373,113 6.1
4 Liberty Mutual 41,473,558 5.3
5 Allstate Corp. 41,387,729 5.3
6 Travelers Companies Inc. 30,920,023 3.9
7 Chubb Ltd. 26,983,034 3.4
8 USAA Insurance Group 25,257,974 3.2
9 Farmers Insurance Group of Companies 25,009,069 3.2
10 Nationwide Mutual Group 19,435,641 2.5

(1) Before reinsurance transactions, includes state funds.
(2) Based on U.S. total, includes territories.

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

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Top 10 Writers Of Life/Annuity Insurance By Direct Premiums Written, 2021

($000)

Rank Group/company Direct premiums written (1) Market share (2)
1 MetLife Inc.  $97,860,893 11.3%
2 Equitable Holdings 83,179,735 9.6 
3 Prudential Financial Inc.  59,387,003 6.9 
4 Massachusetts Mutual Life Insurance Co.  41,683,012 4.8 
5 New York Life Insurance Group  38,855,736 4.5 
6 Athene Holding Ltd. 34,742,313 4.0 
7 Principal Financial Group Inc.  26,535,819 3.1 
8 Western & Southern Financial  26,469,977 3.1 
9 Nationwide 25,745,724 3.0 
10 American International Group (AIG) 25,205,415 2.9 

(1) Includes life insurance, annuity considerations, deposit-type contract funds and other considerations, and accident and health insurance. Before reinsurance transactions.
(2) Based on U.S. total, includes territories.

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

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Life/Annuity Insurance Income Statement, 2016-2020

($ billions, end of year)

  2016 2017 2018 2019 2020 Percent change,
2019-2020 (1)
Revenue            
Life insurance premiums $115.0 $137.1 $145.1 $151.0 $143.1 -5.3%
Annuity premiums and deposits 318.5 287.2 269.7 339.8 294.6 -13.3
Accident and health premiums 162.8 169.3 183.1 185.0 184.7 -0.2
Credit life and credit accident and health premiums 1.3 1.3 1.3 1.4 1.2 -16.3
Other premiums and considerations 2.2 2.1 4.0 (2) (2) (2)
Total premiums, consideration and deposits $599.9 $597.1 $603.2 $679.4 $625.7 -7.9%
Net investment income 173.0 182.3 187.4 186.7 186.0 -0.4
Reinsurance allowance -17.0 -25.1 32.0 -29.7 -22.8 -23.2
Separate accounts revenue 34.7 36.6 37.3 36.8 37.4 1.6
Other income 61.3 49.2 44.0 48.7 55.0 12.8
Total revenue $851.9 $839.9 $903.9 $921.9 $881.2 -4.4%
Expense            
Benefits 271.4 281.4 289.5 301.8 314.2 4.1
Surrenders 265.1 308.9 350.3 339.6 323.4 -4.8
Increase in reserves 133.1 106.4 143.3 120.6 109.8 -8.9
Transfers to separate accounts -38.0 -65.8 -89.6 -72.0 -69.2 -3.9
Commissions 64.6 58.0 58.3 61.2 60.1 -1.8
General and administrative expenses 62.4 65.9 65.9 67.8 67.0 -1.2
Insurance taxes, licenses and fees 10.8 8.8 10.7 9.3 11.5 23.8
Other expenses -2.7 -4.1 11.3 14.4 8.4 -41.8
Total expenses $766.6 $759.4 $839.7 $842.8 $825.2 -2.1%
Net income            
Policyholder dividends 18.2 17.5 18.2 18.1 18.0 -0.5
Net gain from operations before federal income tax 67.1 63.0 46.0 61.0 38.0 -37.7
Federal income tax 16.3 12.4 3.4 9.4 5.1 -45.6
Net income before capital gains $50.8 $50.6 $42.6 $51.6 $32.9 -36.2%
Net realized capital gains (losses) -11.4 -8.6 -4.7 -6.9 -10.7 56.6
Net income $39.4 $42.1 $37.9 $44.7 $22.1 -50.5%
Pre-tax operating income 67.1 63.0 46.0 61.0 38.0 -37.7
Capital and surplus, end of year 380.7 395.0 399.9 421.7 440.0 4.3

(1) Calculated from unrounded data.
(2) Data not available.

NA=Not applicable.

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

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