Facts + Statistics
PROPERTY/CASUALTY INSURANCE INDUSTRY INCOME ANALYSIS, 2006-2010 (1)
| 2006 | 2007 | 2008 | 2009 | 2010 | |
|---|---|---|---|---|---|
| Net written premiums | $443.5 | $440.6 | $434.9 | $418.4 | $422.1 |
| Percent change | 4.2% | -0.6% | -1.3% | -3.8% | 0.9% |
| Earned premiums | $435.5 | $438.9 | $438.3 | $422.3 | $420.5 |
| Losses incurred | 231.3 | 244.7 | 286.3 | 253.8 | 256.5 |
| Loss adjustment expenses incurred | 52.6 | 52.3 | 51.7 | 52.5 | 52.6 |
| Other underwriting expenses | 117.1 | 120.1 | 119.6 | 117.0 | 119.6 |
| Policyholder dividends | 3.4 | 2.4 | 2.0 | 2.0 | 2.3 |
| Underwriting gain/loss | 31.1 | 19.3 | -21.2 | -3.0 | -10.4 |
| Investment income | 52.3 | 55.1 | 51.5 | 47.1 | 47.2 |
| Miscellaneous income/loss | 1.2 | -1.0 | 0.4 | 0.9 | 1.0 |
| Operating income/loss | 84.6 | 73.4 | 30.6 | 45.0 | 37.8 |
| Realized capital gains/losses | 3.5 | 8.9 | -19.8 | -7.9 | 5.7 |
| Incurred federal income taxes/credit | 22.4 | 19.8 | 7.8 | 8.4 | 8.9 |
| Net income after taxes | 65.8 | 62.5 | 3.0 | 28.7 | 34.7 |
(1) Data in this chart may not agree with similar data shown elsewhere due to different sources.
Source: ISO, a Verisk Analytics company.
NET PREMIUMS WRITTEN AND COMBINED RATIO, PROPERTY/CASUALTY INSURANCE, 2001-2010
| Year | Net premiums written (1) | Annual percent change | Combined ratio (2) | Annual point change (3) |
|---|---|---|---|---|
| 2001 | $321,815,428 | 8.5% | 116.6 | 6.5 pts. |
| 2002 | 367,110,718 | 14.1 | 107.4 | -9.2 |
| 2003 | 403,342,729 | 9.9 | 100.2 | -7.2 |
| 2004 | 424,308,387 | 5.2 | 98.5 | -1.6 |
| 2005 | 426,412,220 | 0.5 | 100.8 | 2.3 |
| 2006 | 448,692,863 | 5.2 | 92.8 | -8.0 |
| 2007 | 446,737,168 | -0.4 | 95.5 | 2.7 |
| 2008 | 439,942,214 | -1.5 | 105.1 | 9.6 |
| 2009 | 422,874,547 | -3.9 | 100.5 | -4.6 |
| 2010 | 426,080,086 | 0.8 | 102.6 | 2.2 |
(1) After reinsurance transactions, excluding state funds.
(2) After dividends to policyholders. A drop in the combined ratio represents an improvement; an increase represents a deterioration.
(3) Calculated from unrounded data.
Source: SNL Financial LC.
ANNUAL RATE OF RETURN: NET INCOME AFTER TAXES AS A PERCENT OF EQUITY, 2001-2010
| Property/casualty insurance |
Life/health | Selected other industries (1) | ||||||
|---|---|---|---|---|---|---|---|---|
| Year | Statutory accounting (2) | GAAP accounting (3) | Life/health insurance (4) | Healthcare insurance (5) | Diversified financial (6) | Commercial banks | Electric and gas utilities | Fortune 500 combined industrials and service (7) |
| 2001 | -2.0% | -1.2% | 7.0% | NA | 19.3% | 14.0% | 10.5% | 10.4% |
| 2002 | 3.0 | 2.1 | 1.0 | NA | 19.5 | 17.3 | 7.9 | 10.2 |
| 2003 | 8.5 | 8.8 | 9.0 | NA | 19.5 | 14.9 | 10.5 | 12.6 |
| 2004 | 9.7 | 9.4 | 11.0 | NA | 15.0 | 15.5 | 10.5 | 13.9 |
| 2005 | 10.8 | 9.6 | 13.0 | 16.2% | 15.0 | 16.0 | 10.0 | 14.9 |
| 2006 | 13.4 | 12.7 | 12.0 | 19.0 | 15.0 | 15.0 | 11.0 | 15.4 |
| 2007 | 12.0 | 10.9 | 11.0 | 19.0 | -1.0 | 11.0 | 11.0 | 15.2 |
| 2008 | 0.8 | 0.1 | 1.0 | 11.0 | 8.0 | 3.0 | 13.0 | 13.1 |
| 2009 | 6.2 | 5.0 | 4.0 | 14.0 | 9.0 | 4.0 | 9.0 | 10.5 |
| 2010 | 6.7 | 5.6 | 7.0 | 12.0 | 10.0 | 8.0 | 10.0 | 12.7 |
(1) Return on equity on a GAAP accounting basis, Fortune.
(2) Net income after taxes, divided by year-end policyholders’ surplus. Calculated by the Insurance Information Institute from SNL Financial LC data. Statutory accounting is used by insurers when preparing the Annual Statements they submit to regulators.
(3) Return on average net worth, ISO.
(4) Return on equity on a GAAP accounting basis, Fortune. Combined stock and mutual companies, calculated by the Insurance Information Institute.
(5) Healthcare insurance and managed care.
(6) Companies whose major source of revenue comes from providing diversified financial services. These companies are not specifically chartered as insurance companies, banks or savings institutions, or brokerage or securities companies, but they may earn revenue from these sources.
(7) Fortune 500 Combined Industrial and Service Businesses median return on shareholders' equity.
NA=Data not available.
Source: SNL Financial LC; ISO, a Verisk Analytics company; Fortune.
LIFE/HEALTH INSURANCE INDUSTRY INCOME STATEMENT, 2007-2011
| 2007 | 2008 | 2009 | 2010 | First three quarters, 2011 | |
|---|---|---|---|---|---|
| Revenues | |||||
| Premiums, consideration and deposits | $611.2 | $625.2 | $510.4 | $581.2 | $476.8 |
| Net investment income | 168.0 | 162.2 | 156.6 | 164.1 | 125.4 |
| Reinsurance allowance | -22.4 | 17.8 | 61.5 | -29.3 | -18.2 |
| Separate accounts revenue | 22.9 | 21.2 | 20.4 | 23.4 | 19.3 |
| Other income | 35.3 | 18.3 | 27.8 | 33.9 | 25.9 |
| Total revenue | $815.1 | $844.7 | $776.7 | $773.3 | $629.2 |
| Expenses | |||||
| Benefits | 228.3 | 240.2 | 244.1 | 246.9 | 192.1 |
| Surrenders | 305.2 | 291.6 | 228.7 | 216.8 | 176.2 |
| Increase in reserves | 35.3 | 144.2 | 99.0 | 96.2 | 113.8 |
| Transfers to separate accounts | 66.1 | 22.7 | 11.1 | 29.3 | 23.7 |
| Commissions | 50.7 | 51.7 | 48.9 | 49.3 | 38.5 |
| General and administrative expenses | 52.1 | 53.6 | 54.2 | 56.8 | 43.0 |
| Insurance taxes, licenses and fees | 7.3 | 7.3 | 7.3 | 7.7 | 5.9 |
| Other expenses | 8.0 | 17.2 | 7.4 | 2.2 | 9.7 |
| Total expenses | $753.0 | $828.3 | $700.8 | $705.3 | $602.9 |
| Net income | |||||
| Policyholder dividends | 17.5 | 17.7 | 15.0 | 15.0 | 11.5 |
| Federal income tax | 11.5 | -0.1 | 10.7 | 9.0 | 2.0 |
| Net realized capital gains (losses) | -1.5 | -50.9 | -28.7 | -16.0 | -2.9 |
| Net income | 31.6 | -52.3 | 21.5 | 28.0 | 9.9 |
| Pre-tax operating income | 44.6 | -1.4 | 61.0 | 53.1 | 14.9 |
Source: SNL Financial LC.
INVESTMENTS, LIFE/HEALTH INSURERS, 2008-2010 (1)
| Amount ($ billions) | Percent of total investments | |||||
|---|---|---|---|---|---|---|
| Investment type | 2008 | 2009 | 2010 | 2008 | 2009 | 2010 |
| Bonds | $2,149.6 | $2,291.4 | $2,425.9 | 71.22% | 74.59% | 75.93% |
| Stocks | 113.2 | 73.9 | 76.9 | 3.75 | 2.41 | 2.41 |
| Preferred stock | 64.0 | 11.7 | 9.1 | 2.12 | 0.38 | 0.28 |
| Common stock | 49.2 | 62.2 | 67.7 | 1.63 | 2.03 | 2.12 |
| Mortgage loans on real estate | 328.0 | 316.0 | 307.2 | 10.87 | 10.29 | 9.61 |
| First lien real estate mortgage loans | 325.7 | 313.2 | 305.0 | 10.79 | 10.20 | 9.55 |
| Real estate loans less first liens | 2.3 | 2.8 | 2.1 | 0.08 | 0.09 | 0.07 |
| Real estate | 20.0 | 19.5 | 19.7 | 0.66 | 0.63 | 0.62 |
| Occupied properties | 5.9 | 6.2 | 5.7 | 0.20 | 0.20 | 0.18 |
| Income generating properties | 13.8 | 12.9 | 13.6 | 0.46 | 0.42 | 0.43 |
| Properties for sale | 0.4 | 0.4 | 0.3 | 0.01 | 0.01 | 0.01 |
| Cash, cash equivalent and short term assets | 146.3 | 122.7 | 95.1 | 4.85 | 3.99 | 2.98 |
| Contract loans including premium notes | 119.3 | 120.0 | 123.5 | 3.95 | 3.91 | 3.86 |
| Derivatives | NA | NA | 21.6 | NA | NA | 0.68 |
| Other invested assets | 102.8 | 105.3 | 112.2 | 3.40 | 3.43 | 3.51 |
| Receivables for securities | 3.0 | 2.0 | 1.8 | 0.10 | 0.07 | 0.06 |
| Securities lending reinvested collateral assets | NA | NA | 10.6 | NA | NA | 0.33 |
| Write-ins for invested assets | 36.0 | 21.2 | 0.5 | 1.19 | 0.69 | 0.02 |
| Total cash and invested assets | $3,018.3 | $3,071.9 | $3,194.9 | 100.00% | 100.00% | 100.00% |
(1) Data are net admitted assets of life/health insurers.
NA=Data not available.
Source: SNL Financial LC.
INSURANCE INDUSTRY'S FEDERAL AND FOREIGN INCOME TAXES, 2003-2007
| Year | Property/casualty | Life | Total |
|---|---|---|---|
| 2003 | $10.76 | $7.89 | $18.65 |
| 2004 | 14.59 | 10.00 | 24.59 |
| 2005 | 10.73 | 8.66 | 19.39 |
| 2006 | 22.51 | 11.25 | 33.76 |
| 2007 | 19.94 | 11.80 | 31.74 |
INSURANCE PROVIDED BY FAIR PLANS, FISCAL YEARS 2001-2010 (1)
| Number of | ||||
|---|---|---|---|---|
| Year | Habitational policies | Commercial policies | Exposure (2) ($000) | Direct written premiums ($000) |
| 2001 | 912,829 | 36,748 | $143,459,479 | $438,241 |
| 2002 | 1,422,990 | 81,887 | 269,566,059 | 1,202,010 |
| 2003 | 1,510,665 | 65,532 | 345,909,146 | 1,770,353 |
| 2004 | 1,907,337 | 138,163 | 400,413,034 | 2,164,546 |
| 2005 | 1,928,292 | 117,942 | 387,780,124 | 2,234,493 |
| 2006 | 2,389,299 | 172,070 | 601,859,916 | 4,063,324 |
| 2007 | 2,412,252 | 114,053 | 684,829,667 | 4,431,381 |
| 2008 | 2,190,189 | 90,876 | 612,749,753 | 3,727,311 |
| 2009 | 2,043,969 | 86,575 | 614,905,551 | 3,038,712 |
| 2010 | 2,378,736 | 83,243 | 662,633,180 | 3,448,576 |
(1) Data after 2001 include Florida’s Citizens Property Insurance Corporation, which includes FAIR and Beach Plans; data after 2002 includes the Texas FAIR Plan; data for 2004, 2005 and premiums written after 2007 include Louisiana's Citizens Property Insurance Corporation, which includes FAIR and Beach Plans.
(2) Exposure is the estimate of the aggregate value of all insurance in force in all FAIR Plans in all lines (except liability, where applicable, and crime) for 12 months ending September through December.
Source: Property Insurance Plans Service Office (PIPSO).
INSURANCE PROVIDED BY FAIR PLANS BY STATE, FISCAL YEAR 2010 (1)
| Number of | ||||
|---|---|---|---|---|
| State | Habitational policies | Commercial policies | Exposure (2) ($000) | Direct written premiums ($000) |
| California | 135,023 | 6,796 | $41,276,819 | $65,304 |
| Connecticut | 3,178 | 152 | 594,327 | 3,476 |
| Delaware | 2,054 | 92 | 289,691 | 628 |
| Florida (3) | 1,446,892 | 56,852 | 460,703,299 | 2,604,265 |
| Georgia | 24,592 | 1,748 | 3,393,587 | 20,139 |
| Illinois | 6,185 | 114 | 543,708 | 5,543 |
| Indiana | 1,780 | 55 | 156,122 | 1,405 |
| Iowa | 811 | 38 | 57,515 | 539 |
| Kansas | 10,229 | 185 | 530,543 | 4,792 |
| Kentucky | 10,550 | 606 | NA | 5,738 |
| Louisiana (3) | 154,897 | 6,101 | 23,923,775 | 209,946 |
| Massachusetts | 214,991 | 579 | 77,597,516 | 283,010 |
| Michigan | 32,461 | 598 | 3,795,954 | 34,021 |
| Minnesota | 6,872 | 5 | 643,595 | 5,216 |
| Mississippi | 11,096 | (4) | 643,264 | 7,156 |
| Missouri | 5,089 | 233 | 275,006 | 2,526 |
| New Jersey | 22,057 | 758 | 3,016,107 | 11,755 |
| New Mexico | 11,597 | 270 | NA | 3,511 |
| New York | 54,255 | 4,695 | 14,219,672 | 35,735 |
| Ohio | 35,338 | 669 | 7,163,529 | 22,374 |
| Oregon | 2,674 | 106 | 196,554 | 1,055 |
| Pennsylvania | 25,138 | 1,695 | 1,767,885 | 8,843 |
| Rhode Island | 17,530 | 134 | 4,121,242 | 21,206 |
| Texas | 110,593 | (4) | 14,246,998 | 73,924 |
| Virginia | 29,239 | 590 | 3,429,181 | 15,901 |
| Washington | 32 | 36 | 18,446 | 154 |
| West Virginia | 668 | 79 | 28,845 | 414 |
| Wisconsin | 2,915 | 57 | NA | NA |
| Total | 2,378,736 | 83,243 | $662,633,180 | $3,448,576 |
(1) Does not include the FAIR Plans of Arkansas, Hawaii, Maryland, North Carolina and the District of Columbia.
(2) Exposure is the estimate of the aggregate value of all insurance in force in all FAIR Plans in all lines (except liability, where applicable, and crime) for 12 months ending September through December.
(3) Citizens Property Insurance Corporation, which combined the FAIR and Beach Plans.
(4) The Mississippi and Texas FAIR Plans do not offer a commercial policy.
NA=Data not available.
Source: Property Insurance Plans Service Office (PIPSO).
INSURANCE PROVIDED BY BEACH AND WINDSTORM PLANS, FISCAL YEAR 2010 (1)
| Number of | ||||
|---|---|---|---|---|
| State | Habitational policies | Commercial policies | Exposure (2) ($000) |
Direct written premiums ($000) |
| Alabama | 18,734 | 131 | $3,298,904 | $37,769 |
| Mississippi | 44,992 | 1,554 | 7,024,228 | 79,082 |
| South Carolina | 46,900 | 1,186 | 17,444,426 | 97,127 |
| Texas | 247,972 | 17,998 | 67,452,437 | 385,550 |
| Total | 358,598 | 20,869 | $95,219,995 | $599,528 |
(1) Does not include the North Carolina Beach Plan; the Florida and Louisiana Beach Plans merged with their FAIR Plans.
(2) Exposure is the estimate of the aggregate value of all insurance in force in each state’s Beach and Windstorm Plan in all lines (except liability, where applicable, and crime) for 12 months ending September through December.
Source: Property Insurance Plans Service Office (PIPSO).