April 2012

NAIC Research and Actuarial Department:
Data at a Glance

We are pleased to introduce to you this new section to our Newsletter. Each CIPR Newsletter will contain a brief analysis of data taken from reports published by the NAIC’s Research and Actuarial Department. The Research & Actuarial Department is committed to providing insurance regulators, consumers, academics, industry and government entities and other interested persons with insurance statistical, actuarial, financial and market conduct information for both economic analysis and regulatory monitoring of the insurance marketplace

The data in this issue includes direct written premiums, market shares, and pure loss ratios for the Homeowners and Private Passenger Auto lines. The data is taken from the “Exhibit of Premiums and Losses” from the NAIC property and casualty annual statement. Comparisons can be made between 2010 and 2011 data. The direct loss ratio for the homeowners line deteriorated by over 15 points over the past year, from 60.38 to 75.76, likely a result of the large number of catastrophes in 2011. The private passenger auto line experienced a smaller deterioration of nearly three points over the past year. Market shares among companies did not vary to a large degree over the past year. The same ten insurers made up the top ten in 2010 and 2011, in both the auto and homeowners lines.

The NAIC publishes market share reports for various types of insurance. Data in this article are based on the 2011 Market Share Reports for Property/Casualty Groups and Companies. The Report contains data on the top 125 groups/companies writing each of the property and casualty lines of business. Additionally, the Report provides the top 10 groups by state. For more detailed information on a particular line of business, Market Share By Line reports provide the top 99% of the market share by state for each line of business.

These reports are available for purchase on the following web page:
http://www.naic.org/prod_serv_alpha_listing.htm#market_share

For additional information regarding this data please contact a member of the Research and Actuarial Department staff. Additional information can be found at:
http://www.naic.org/research_actuarial_dept.htm

2011 TOP 10 MARKET SHARE - HOMEOWNERS

Group/ Company Code Group/Company Name Direct Premiums Written 2011 Market Share 2010 Market Share 2011 Pure Loss Ratio 2010 Pure Loss Ratio
176 STATE FARM GRP 15,891,130,786 18.62 21.83 74.48 63.22
8 ALLSTATE INS GRP 6,972,557,667 10.32 9.56 77.89 64.55
212 ZURICH INS GRP 4,702,384,183 9.07 6.55 57.95 53.51
111 LIBERTY MUT GRP 4,088,561,071 7.94 5.20 73.48 58.70
200 UNITED SERV AUTOMOBILE ASSN GRP 3,462,529,329 5.90 4.42 79.48 57.72
3548 TRAVELERS GRP 3,441,895,660 4.60 4.59 84.39 59.07
140 NATIONWIDE CORP GRP 2,743,125,634 4.54 3.95 83.18 64.55
38 CHUBB INC GRP 1,802,045,913 4.05 2.46 65.33 57.12
10064 CITIZENS PROP INS CORP 1,567,340,653 2.08 1.61 62.59 45.19
473 AMERICAN FAMILY INS GRP 1,531,338,055 1.80 2.11 88.86 72.55
  **INDUSTRY TOTAL** 74,460,021,799     75.76 60.38

2011 TOP 10 MARKET SHARE - TOTAL PRIVATE PASSENGER*

Group/
Company Code
Group/Company Name Direct Premiums Written 2011 Market Share 2010 Market Share 2011 Pure Loss Ratio 2010 Pure Loss Ratio
176 STATE FARM GRP        31,488,620,037           18.62 18.67 76.04 76.29
8 ALLSTATE INS GRP        17,451,278,899           10.32 10.19 61.70 59.83
31 BERKSHIRE HATHAWAY GRP        15,346,176,564             9.07 8.50 69.11 65.06
155 PROGRESSIVE GRP        13,423,204,913  7.94 7.70 61.89 62.01
212 ZURICH INS GRP 9,972,073,872 5.90 5.96 61.11 54.87
200 UNITED SERV AUTOMOBILE ASSN GRP 7,778,763,692 4.60 4.36 74.04 68.44
111 LIBERTY MUT GRP 7,684,231,087 4.54 4.50 60.12 58.04
140 NATIONWIDE CORP GRP 6,855,293,147 4.05 4.22 71.05 60.39
3548 TRAVELERS GRP 3,526,738,412 2.08 2.11 76.96 57.45
473 AMERICAN FAMILY INS GRP 3,042,992,183 1.80 1.94 62.59 55.51
  **INDUSTRY TOTAL** 169,152,645,967     67.52 64.71

*This data includes lines 19.1, 19.2, and 21.1 of the 2011 Property/Casualty Annual Statement


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