2013 Alabama Insurance Market Analysis
Ted A. Kinney, CIC CPCU ARM AU AAM AAI CPIA CRIS
AIIA Director of Education and Technical Affairs
According to an article written by Dr. Robert Hartwig for the Insurance Information
Institute, “Profitability in the property/casualty insurance industry rebounded sharply in
2012, despite $35 billion in insured losses from catastrophes, the majority of those from
super storm Sandy. The improvement was propelled chiefly by a growth in premiums and
a reduction in both private insurer catastrophe and non-catastrophe related loss and loss
adjustment expenses. The effect: the industry combined ratio fell to 103.2 in 2012 from
108.1 in 2011 on underwriting losses that shrank by 54 percent to $16.7 billion from
$36.2 billion the year before. The industry’s bottom line benefited as well as overall net
income after taxes (profits) surged by 72.3 percent in 2012 to $33.5 billion from $19.5
billion in 2011, pushing the industry’s return on average surplus up to 5.9 percent for the
year, up from 3.5 percent in 2011. Stronger top line growth is also now a consistent and
meaningful contributor to improved profitability. Net written premiums were up 4.3
percent in 2012, nearly a full point above the 3.4 percent gain recorded in 2011—the
strongest growth so far recorded in the post-crisis era—while also exceeding the 4.0
percent nominal rate of growth in the overall economy last year. Indeed, net written
premiums in 2012 expanded at their fastest pace in nearly a decade. Persistently low
interest rates, of course, remain a challenge for the industry, with net investment income
slipping by $2.3 billion or 4.1 percent in 2012. Overall industry capacity rose to a record
$586.9 billion as of December 31, 2012—up $33.1 billion or 6.0 percent from $573.0
billion as of year-end 2011.”
The 2013 Edition of the Property/Casualty State/Line Report published by A.M. Best
reflects the Alabama P&C market based on 2012 industry data. Premium results are
classified by line of business and by insurance company. This compilation reflects only
rank by premium volume and market share for the top ten carriers by line in Alabama.
Direct writers in 2012 saw a slight increase in market share, with 57.7%, which reflects a
.7% increase from 2011 (57.0%). This represents $3.92 billion of the $6.81 billion
dollar Alabama market. National/State agency companies produced 42.3% of the market
in 2012, which reflects a .5% decrease from 2011. National/State agency carriers wrote
$2.88 billion of the $6.81 billion dollar Alabama market.
A close look at the breakdown of percentages gives a better understanding of the market
segmentation between the Direct Writers and National/State companies. Direct writers
are still the leader in the personal lines market, producing 81.3% of the $1.47 billion
dollar Homeowners market, 80.5% of the $1.26 billion Private Passenger Automobile
Liability market and 82.4% of the $1.08 billion Private Passenger Automobile Physical
Damage market. The two major personal lines markets where National/State agency
companies produced higher market percentages are the Fire insurance market with 67.7%
of the $220 million dollar premium writings and the Allied Lines market with 72.1% of
$175 million dollar premium writings.
While the Direct Writers dominate the personal lines market, National/State agency
companies continue to produce the majority of the commercial lines premium with 66.0%
of the $361 million dollar Commercial Multi-Peril Non-Liability market, 64.7 % of the
$181 million dollar Commercial Multi-Peril Liability market, 58.6% of the $223 million
dollar Inland Marine Market, 76.4% of the $316 million dollar Workers Compensation
market, 81.2% of the $272 million dollar Commercial Auto Liability market, 76.5% of
the $87 million dollar Commercial Auto Physical Damage market, 82.9% of the $39
million dollar Products Liability market, 78.8% of the $330 million dollar Other
Commercial Liability market, and 81.1% of the $131 million dollar Medical Malpractice
market.
The Alabama All Lines Study represents approximately $6.88 billion dollars and includes
all of the totals represented in this article. Of this total, 57.4% or approximately $3.94
billion dollars is written by Direct Writers with the balance of 42.6% or approximately
$2.93 billion dollars written by National/State agency companies. The overall market
grew from $6.61 billion in 2011 to $6.88 billion in 2012. Market share for Direct Writers
increased .3% in 2012 (57.4%) compared to 2011 (57.1%).
Fire Insurance
Rank Company
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
American International Group
Farmers Insurance Group
Assurant Insurance Group
Auto Owners Insurance Group
Travelers
Munich-American Group
Zurich Financial Services
Liberty
FM Global Group
National Security Group
Market Share
(%)
10.2
9.6
8.4
6.2
5.1
4.5
4.1
3.3
3.3
3.2
Premium Written
($000)
22,568
21,192
18409
13,552
11,273
9,889
8,924
7,257
7,234
7,110
The Fire insurance market in Alabama represents approximately $220.3 million dollars.
Direct Writers produced $71.1 million dollars or 32.3% of this amount. National/State
agency companies produced $149.1 million dollars or 67.7% of the total.
Homeowners
Rank Company
1.
2.
3.
State Farm Group
ALFA Insurance Group
Allstate Insurance Group
Market Share
(%)
29.8
14.8
9.9
Premium Written
($000)
439,621
218,522
146,341
4.
5.
6.
7.
8.
9.
10.
Farmers Insurance Group
Travelers Insurance Companies
USAA Group
Nationwide Group
Country Financial
Liberty Mutual
Auto-Owners Insurance Group
7.6
5.9
4.7
3.3
3.3
3.2
2.4
112,419
87,125
69,275
48,766
48,473
47,500
35,031
The Homeowners insurance market in Alabama represents approximately $1.4 billion
dollars. Direct Writers produced $1.2 billion dollars or 81.3% of this amount.
National/State agency companies produced $276.0 million dollars or 18.7% of the total.
Allied Lines
Rank Company
1.
2.
3.
4.
5.
6.
7
8.
9.
10.
FM Global Group
American International Group
Zurich Financial Services NA
Allegheny Insurance Holdings
Travelers Insurance Companies
ACE INA Group
USAA
Assurant P&C Group
GeoVera U.S. Insurance Group
Munich Re/American
Market Share
(%)
8.1
6.8
6.7
6.2
4.8
4.5
4.0
3.8
3.4
3.3
Premium Written
($000)
14,241
12,011
11,743
10,889
8,503
7,880
7,074
6,728
6,062
5,840
The Allied Lines insurance market in Alabama represents approximately $175.9 million
dollars. Direct Writers produced $49.1 million dollars or 27.9% of this amount.
National/State agency companies produced $126.8 million dollars or 72.1% of the total.
Private Passenger Auto Liability
Rank Company
1.
2.
3.
4.
5.
6.
7.
8.
9.
State Farm Group
ALFA Insurance Group
Allstate Insurance Group
Berkshire Hathaway
Progressive Group
USAA Group
Nationwide Group
Farmers Insurance Group
Travelers Insurance Companies
Market Share
(%)
23.1
16.5
10.1
8.4
7.2
5.3
4.4
4.1
2.5
Premium Written
($000)
291,917
208,463
128,449
106,270
91,002
67, 428
55,229
51,795
31,731
10.
Liberty Mutual
2.4
30,946
The Private Passenger Auto Liability insurance market in Alabama represents
approximately $1.26 billion dollars. Direct Writers produced $1.018 billion dollars or
80.5% of this amount. National/State agency companies produced $246.6 million dollars
or 19.5% of the total.
Private Passenger Auto Physical Damage
Rank Company
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
State Farm Group
ALFA Insurance Group
Allstate Insurance Group
Berkshire Hathaway
USAA Group
Progressive Group
Nationwide Group
Farmers Insurance Group
Liberty Mutual
Travelers Insurance Companies
Market Share
(%)
24.3
16.9
11.7
8.0
6.5
5.9
3.7
3.6
2.5
2.0
Premium Written
($000)
263,322
182,450
126,456
86,863
69,854
63,954
39,942
38,933
26,741
21,246
The Private Passenger Auto Physical Damage insurance market in Alabama represents
approximately $1.08 billion dollars. Direct Writers produced $891.7 million dollars or
82.4% of this amount. National/State agency companies produced $191.0 million dollars
or 17.6% of the total.
Commercial Mult-Peril (Non-Liability)
Rank Company
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Travelers Insurance Companies
Cincinnati Insurance Companies
State Farm Group
Nationwide Group
Auto-Owners Insurance Group
Alabama Municipal Group
ALFA Insurance Group
Zurich Financial Services NA
Hartford Insurance Group
Starr International Group
Market Share
(%)
9.4
6.5
6.2
5.7
5.7
4.6
4.1
3.7
3.4
3.4
Premium Written
($000)
34,051
23,653
22,523
20,622
20,485
16,480
14,743
13,419
12,424
12,160
The Commercial Multi-Peril (Non-Liability) market in Alabama represents
approximately $361.8 million dollars. Direct Writers produced $123.1 million dollars or
34.0% of this amount. National/State agency companies produced $238.6 million dollars
or 66.0% of the total.
Commercial Mult-Peril (Liability)
Rank Company
1.
2.
3.
4.
5.
6.
7.
8.
8.
9.
10.
Alabama Municipal Group
Travelers Insurance Companies
Auto-Owners Insurance Group
Nationwide Group
Cincinnati Insurance Companies
Philadelphia/Tokio Group
Starr International Group
State Farm Group
ALFA Insurance Group
CNA Insurance Companies
Hartford Insurance Group
Market Share
(%)
12.0
9.9
9.7
6.4
4.7
4.5
4.1
3.6
3.1
2.8
2.7
Premium Written
($000)
21,811
18,009
17,648
11,568
8,588
8,137
7,441
6,539
5,540
5,086
4,821
The Commercial Multi-Peril (Liability) market in Alabama represents approximately
$181.4 million dollars. Direct Writers produced $64.0 million dollars or 35.3% of this
amount. National/State agency companies produced $117.3 million dollars or 64.7% of
the total.
Inland Marine
Rank Company
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Liberty Mutual Insurance Companies
CNA Insurance Companies
State Farm Group
Zurich Financial Services NA
Travelers Group
Progressive Group
FM Global Group
ALFA Insurance Group
Great American P&C Group
Securian Financial PC Group
Market Share
(%)
18.9
12.1
7.7
5.3
4.5
2.9
2.8
2.7
2.6
2.5
Premium Written
($000)
42,190
26,942
17,263
11,819
10,018
6,438
6,212
6,078
5,833
5,521
The Inland Marine market in Alabama represents approximately $223.2 million dollars.
Direct Writers produced $92.3 million dollars or 41.4% of this amount. National/State
agency companies produced $130.9 million dollars or 58.6% of the total.
Workers Compensation
Rank Company
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Market Share
(%)
Liberty Mutual Insurance Companies
Travelers Group
American International Group, Inc.
Hartford Insurance Group
Zurich Financial Services NA
Berkshire Hathaway
ACE INA Group
W.R. Berkley Group
Chubb Group of Insurance Companies
Benchmark Insurance Company
12.2
11.1
10.7
7.3
6.6
4.2
3.4
3.1
3.0
2.7
Premium Written
($000)
38,507
35,135
33,671
23,060
21,021
13,185
10,817
9,725
9,486
8,435
The Workers Compensation market in Alabama represents approximately $316.1 million
dollars. Direct Writers produced $74.6 million dollars or 23.6% of this amount.
National/State agency companies produced $241.4 million dollars or 76.4% of the total.
Other Liability
Rank Company
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Travelers Insurance Companies
Zurich Financial Services NA
American International Group, Inc.
Assurant Insurance Group
Cincinnati Insurance Companies
Nationwide Group
Liberty Mutual Insurance Companies
Penn National Insurance
Auto-Owners Insurance Group
Fairfax Financial (USA) Group
Market Share
(%)
7.0
6.8
5.6
4.4
4.2
4.1
4.1
3.4
3.3
2.7
Premium Written
($000)
23,068
22,327
18,602
14,367
13,837
13,567
13,538
11,373
10,804
8,768
The Other Liability market in Alabama represents approximately $330.0 million dollars.
Direct Writers produced $70.0 million dollars or 21.2% of this amount. National/State
agency companies produced $259.9 million dollars or 78.8% of the total.
Commercial Auto Liability
Rank Company
1.
Progressive Group
Market Share
(%)
9.4
Premium Written
($000)
25,500
2.
3.
4.
5.
6.
7.
8.
9.
10.
Auto-Owners Insurance Group
American International Group, Inc.
Travelers Insurance Companies
Zurich Financial Services NA
Old Republic Insurance Group
Nationwide Group
Liberty Mutual Insurance Companies
Penn National Insurance Group
Canal Group
7.4
6.7
6.6
4.8
4.7
4.4
4.3
3.2
3.0
20,128
18,225
18,059
13,091
12,891
11,875
11,661
8,580
8,144
The Commercial Auto Liability market in Alabama represents approximately $272.1
million dollars. Direct Writers produced $51.1 million dollars or 18.8% of this amount.
National/State agency companies produced $221.0 million dollars or 81.2% of the total.
Commercial Auto Physical Damage
Rank Company
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Market Share
(%)
Auto-Owners Insurance Group
Progressive Group
Travelers Insurance Companies
Nationwide Group
Liberty Mutual Insurance Group
State Farm Group
Old Republic Insurance Group
Penn National Insurance
Zurich Financial Services NA
Starr International Group
13.4
10.8
6.7
4.3
3.6
3.4
3.4
2.8
2.8
2.5
Premium Written
($000)
11,702
9,472
5,870
3,729
3,167
2,995
2,980
2,470
2,426
2,222
The Commercial Auto Physical Damage market in Alabama represents approximately
$87.3 million dollars. Direct Writers produced $20.4 million dollars or 23.5% of this
amount. National/State agency companies produced $66.8 million dollars or 76.5% of
the total.
Products Liability
Rank Company
1.
2.
3.
4.
5.
6.
Market Share
(%)
American International Group, Inc.
Penn National Insurance
Cincinnati Insurance Companies
Liberty Mutual Insurance Companies
Chubb Group of Insurance Companies
Zurich Financial Services NA
14.4
9.3
6.5
5.7
5.5
4.1
Premium Written
($000)
5,765
3,712
2,604
2,292
2,190
1,655
7.
8.
9.
10.
W.R. Berkley Group
Travelers Insurance Companies
Ironshore Insurance Group
United Fire & Casualty Group
3.7
3.6
3.2
2.6
1,493
1,448
1,299
1,029
The Products liability market in Alabama represents approximately $39.9 million dollars.
Direct Writers produced $6.8 million dollars or 17.1% of this amount. National/State
agency companies produced $33.8 million dollars or 82.9% of the total.
Medical Professional Liability
Rank Company
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
ProAssurance Group
MAG Mutual Group
CNA Insurance Companies
Coastal Insurance RRG, Inc.
Centennial Casualty Company
Berkshire Hathaway
Ironshore Insurance Group
State Volunteer Mutual
White Mountain Insurance Group
W.R. Berkley Group
Market Share
(%)
51.2
7.2
5.7
5.6
4.9
4.0
2.1
2.0
1.5
1.3
Premium Written
($000)
67,388
9,419
7,561
7,347
6,510
5,226
2,796
2,651
1,914
1,772
The Medical Malpractice market in Alabama represents approximately $131.5 million
dollars. Direct Writers produced $24.8 million dollars or 18.9% of this amount.
National/State agency companies produced $106.7 million dollars or 81.1% of the total.
Federal Flood
Rank Company
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Selective Insurance Group
Assurant P&C Group
Fidelity National Group
Auto-Owners Insurance Group
Allstate Insurance Group
Nationwide Group
American International Group
Travelers Group
USAA Group
Hartford Insurance Group
Market Share
(%)
14.2
13.8
12.6
9.9
7.9
7.8
7.2
6.4
5.9
5.7
Premium Written
($000)
3,922
3,830
3,496
2,734
2,175
2,155
1,995
1,781
1,626
1,569
The Federal Flood market in Alabama represents approximately $27.6 million dollars.
Direct Writers produced $7.9 million dollars or 28.8% of this amount. National/State
agency companies produced $19.7 million dollars or 71.2% of the total.
All Lines – Overall Ranking (Top 20)
Rank Company
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Market Share
(%)
State Farm Group
ALFA Insurance Group
Allstate Insurance Group
Travelers Insurance Companies
Liberty Mutual Insurance Companies
Farmers Insurance Group
Nationwide Group
USAA Group
Berkshire Hathaway
American International Group, Inc.
Progressive Group
Auto-Owners Insurance Group
Zurich Financial Services NA
Cincinnati Insurance Companies
CNA Insurance Companies
Country Financial
Hartford Insurance Group
ACE INA Group
Chubb Group of Insurance Companies
ProAssurance Group
15.7
10.2
6.2
4.9
3.7
3.7
3.4
3.3
3.2
2.9
2.9
2.6
1.9
1.8
1.5
1.4
1.4
1.3
1.0
1.0
Premium Written
($000)
1,082,105
698,566
429,578
340,515
253,777
252,058
237,332
224,687
220,968
200,970
198,079
178,880
129,483
125,123
102,614
99,394
93,951
91,143
71,972
68,676
The total Property and Casualty insurance market in Alabama represents approximately
$6.8 billion dollars. Direct Writers produced $3.9 billion dollars or 57.4% of this
amount. National/State agency companies produced $2.9 billion dollars or 42.6% of the
total.