A Firm Foundation: How Insurance Supports the Economy

Key Facts: The Insurance Industry’s Contribution To The New Mexico Economy

The insurance industry in New Mexico 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 12,472 jobs in New Mexico in 2016. The New Mexico insurance industry accounted for about $700 million in compensation in 2016.

Gross State Product

The insurance industry contributed $1.3 billion to the New Mexico gross state product (GSP) in 2015, accounting for 1.4 percent of the state GSP.

Taxes

Premium taxes paid by insurance companies in New Mexico totaled $214.7 million in 2016.

Premiums

Direct premiums written by property/casualty insurance companies in New Mexico totaled $3.1 billion in 2016. In addition, premiums written by life/health insurance companies totaled $3.0 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 New Mexico surplus lines market accounted for $99.5 million in gross premiums written in 2016, 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 New Mexico as measured by direct property/casualty incurred losses, were $2.0 billion. Life insurance claims and benefits payouts in New Mexico totaled $2.4 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. Floods and wildfires are some of the natural disasters that have occurred or could occur in New Mexico.

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 New Mexico By Direct Premiums Written, 2017 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Travelers Companies Inc. $105,300 7.8%
2 Liberty Mutual 100,813 7.5
3 New Mexico Mutual 100,398 7.4
4 CNA Financial Corp. 63,034 4.7
5 Zurich Insurance Group (2) 57,573 4.3
6 Farmers Insurance Group of Companies (2) 41,689 3.1
7 W. R. Berkley Corp. 40,661 3.0
8 American International Group (AIG) 40,326 3.0
9 Hartford Financial Services 40,295 3.0
10 Tokio Marine Group 37,944 2.8

(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 New Mexico By Direct Premiums Written, 2017 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm  $103,021 20.1%
2 Farmers Insurance Group of Companies (2) 96,409 18.8
3 Liberty Mutual 54,325 10.6
4 USAA Insurance Group 51,711 10.1
5 Allstate Corp. 44,947 8.8
6 Hartford Financial Services 20,234 3.9
7 Travelers Companies Inc. 18,976 3.7
8 Farm Bureau Financial Services 18,150 3.5
9 Munich Re  13,896 2.7
10 Chubb Ltd. 12,732 2.5

(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 Private Passenger Auto Insurance In New Mexico By Direct Premiums Written, 2017 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 State Farm  $277,878 20.0%
2 Berkshire Hathaway Inc. 207,105 14.9
3 Progressive  160,619 11.6
4 Farmers Insurance Group of Companies (2) 155,049 11.2
5 USAA Insurance Group 127,970 9.2
6 Allstate Corp. 97,610 7.0
7 Liberty Mutual 69,048 5.0
8 Hartford Financial Services 41,760 3.0
9 Sentry Insurance a Mutual Co. 32,713 2.4
10 Farm Bureau Financial Services 30,209 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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State By State Comparison Tables

Directories

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