A Firm Foundation: How Insurance Supports the Economy

Key Facts: The Insurance Industry’s Contribution To The Alabama Economy

The insurance industry in Alabama 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.

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

Employment

U.S. Department of Commerce data show the insurance industry provided 37,524 jobs in Alabama in 2015. The Alabama insurance industry accounted for about $2.7 billion in compensation in 2015.

Gross State Product

The insurance industry contributed $3.9 billion to the Alabama gross state product (GSP) in 2014, accounting for 1.99 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in Alabama totaled $312.0 million in 2015.

Premiums

Direct premiums written by property/casualty insurance companies in Alabama totaled $7.8 billion in 2015. In addition, premiums written by life/health insurance companies totaled $$7.3 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 Alabama surplus lines market accounted for $529.8 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 2015 these payments in Alabama as measured by direct property/casualty incurred losses, were $4.1 billion. Life insurance claims and benefits payouts in Alabama totaled $5.4 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

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 total value of insured coastal property in Alabama was $118.2 billion in 2012, accounting for 13 percent of the state’s total insurance property exposure, according to AIR Worldwide Corporation. Three of the 10 costliest hurricanes in U.S. history have impacted Alabama: hurricanes Katrina and Rita in 2005 and Hurricane Ivan in 2004. Alabama is also prone to tornadoes and wildfires. In April 2011 a devastating outbreak of tornadoes in Tuscaloosa killed 238 and destroyed 5,300 homes. Alabama ranked 3rd in the nation for the number of tornadoes in 2016 with 87 storms. The state ranked fifth in the nation for the number of wildfires.

Leading Writers

 

Top 10 Writers of Commercial Insurance In Alabama By Direct Premiums Written, 2016 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $216,253 6.7%
2 Chubb Ltd. 142,687 4.5
3 Liberty MHC Inc. 136,189 4.2
4 American International Group (AIG) 132,110 4.1
5 Zurich Insurance Group (2) 128,941 4.0
6 Auto-Owners Insurance Group 124,705 3.9
7 CNA Financial Corp. 119,251 3.7
8 Nationwide Mutual Group 108,419 3.4
9 Cincinnati Financial Corp. 98,464 3.1
10 State Farm 76,728 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 Alabama By Direct Premiums Written, 2016 (1)

Rank Group/company Direct premiums written ($000) Market share
1 State Farm Mutual Automobile Insurance $499,281 30.1%
2 Alfa Mutual Group 223,000 13.4
3 Allstate Corp. 188,100 11.3
4 USAA Insurance Group 118,850 7.2
5 Farmers Insurance Group of Companies (2) 90,994 5.5
6 Travelers Companies Inc. 72,260 4.3
7 Liberty Mutual 57,532 3.5
8 Nationwide Mutual Group 47,648 2.9
9 COUNTRY Financial 36,987 2.2
10 Auto-Owners Insurance Co. 36,168 2.2

(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 Alabama, 2015 (1)

 

Rank Group/company Premiums and annuity considerations ($000) Market share
1 Prudential Financial Inc. $317,145 5.5%
2 Jackson National Life Group 307,347 5.3
3 American International Group (AIG) 296,426 5.1
4 New York Life Insurance Group 269,615 4.6
5 Lincoln National Corp. 265,570 4.6
6 MetLife Inc. 252,818 4.4
7 Manulife Financial Corp. 220,497 3.8
8 Massachusetts Mutual Life Ins. Co. 219,070 3.8
9 Principal Financial Group Inc. 185,613 3.2
10 Global Atlantic Financial Group 174,511 3.0

(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 Alabama By Direct Premiums Written, 2016 (1)

Rank Group/company Direct premiums written ($000) Market share
1 State Farm $768,213 25.4%
2 Alfa Mutual Group 440,171 14.5
3 Allstate Corp. 332,998 11.0
4 Berkshire Hathaway Inc. 282,947 9.4
5 Progressive Insurance Group 204,301 6.8
6 USAA Insurance Group 200,466 6.6
7 Nationwide Mutual Group 98,549 3.3
8 Liberty Mutual 78,171 2.6
9 Farmers Insurance Group of Companies (2) 74,094 2.4
10 Travelers Companies Inc. 68,477 2.3

(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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State By State Comparison Tables

Directories

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