A Firm Foundation: How Insurance Supports the Economy

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 68,271 jobs in Virginia in 2016. The Virginia insurance industry accounted for about $5.0 billion in compensation in 2016.

Gross State Product

The insurance industry contributed $7.3 billion to the Virginia gross state product (GSP) in 2015, accounting for 1.52 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Virginia totaled $491.5 million in 2016.

Premiums

Direct premiums written by property/casualty insurance companies in Virginia totaled $13.1 billion in 2016. In addition, premiums written by life/health insurance companies totaled $17.3 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 $665.9 million 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 2016 these payments in Virgina as measured by direct property/casualty incurred losses, were $7.7 billion. Life insurance claims and benefits payouts in Virgina totaled $11.1 billion in 2016.

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.

Leading Writers

Below are tables showing the state’s leading insurance companies, based on market share, and links to state by state comparison tables.

Top 10 Writers Of Commercial Insurance In Virginia By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc.  $372,332 6.2%
2 Chubb  318,919 5.3
3 American International Group (AIG)  301,229 5.0
4 Liberty Mutual  287,135 4.8
5 Erie Insurance  265,894 4.4
6 Zurich  253,890 4.2
7 The Hartford  221,226 3.7
8 Nationwide Mutual Group  218,030 3.6
9 CNA  203,284 3.4
10 The Cincinnati Insurance Cos.  138,239 2.3

(1) Before reinsurance transactions.

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

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Top 10 Writers Of Homeowners Insurance In Virginia By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 USAA $416,698 17.9%
2 State Farm 410,895 17.6
3 Allstate Corp. 202,754 8.7
4 Travelers 202,472 8.7
5 Nationwide 172,979 7.4
6 Liberty Mutual 135,629 5.8
7 Erie Insurance 131,060 5.6
8 American Family Insurance 78,584 3.4
9 Farmers Insurance Group of Companies 49,638 2.1
10 VA Farm Bureau Federation 48,525 2.1

(1) Before reinsurance transactions.

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 Virginia, 2015 (1)

 

Rank Group/company Premiums and annuity considerations ($000) Market share
1 Prudential Financial Inc.   $1,040,601 8.0%
2 Jackson National Life Group   705,782 5.4
3 Lincoln National Corp.   700,014 5.4
4 Manulife Financial Corp.   681,986 5.3
5 Massachusetts Mutual Life Insurance Co.   661,218 5.1
6 New York Life Insurance Group   602,774 4.7
7 American International Group (AIG)   598,766 4.6
8 AEGON   519,459 4.0
9 Principal Financial Group Inc.   501,565 3.9
10 MetLife Inc.   498,160 3.8

(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 Virginia By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Berkshire Hathaway Inc.  $1,089,741 18.9%
2 State Farm  918,303 16.0
3 USAA  763,965 13.3
4 Progressive  583,336 10.1
5 Allstate Corp.  541,477 9.4
6 Nationwide  411,037 7.1
7 Erie Insurance  226,053 3.9
8 Liberty Mutual  150,296 2.6
9 Travelers Companies Inc.  130,820 2.3
10 VA Farm Bureau Federation  124,259 2.2

(1) Before reinsurance transactions.

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

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State By State Comparison Tables

Directories

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