Results Based on Insurers’ Growth June 30, 2009, versus June 30, 2008
As I write this article, the unemployment rate in the United States was reported to be 9.4 percent as of the end of July. Gross Domestic Product (GDP) was reported to shrink by 1 percent in the second quarter of 2009. Employers are managing their payrolls to stabilize their corporate earnings and cash flow. Despite these economic conditions, the direct premium written by the insurers reporting growth in their workers’ compensation writings, the Top 25 reported an average increase in workers’ compensation insurance of an astonishing 36 percent. This occurred for the period June 30, 2009, versus June 30, 2008.
Aggregate reported workers’ compensation insurance was nearly $22.5 billion. Although the fastest growing 25 carriers comprised only 8 percent of the marketplace on dollar volume, their percentage increase of 36 percent was appreciably superior to the overall decline experienced in the workers’ compensation marketplace, a decline of nearly 13 percent.
With an excess of 700 carriers offering workers’ compensation to employers within the United States, there is a competitive environment for employers. However, with significant unemployment and declining payrolls, have those comprising the Top 25 in growth found a silver bullet to combat general economic conditions? Have they outperformed their competition? Alternatively, have they written under-priced business during an economic downturn?
If the growth experienced by Top 25 was successfully underwritten and properly priced, the loss ratio should be acceptable. However, in a long-tail casualty line, such as workers’ compensation insurance, the ultimate losses and loss adjustment expense will not be known for several years. In the property/casualty insurance industry, today’s winners sometimes become tomorrow’s whiners.
Top 25 Workers’ Compensation Insurers
Based Upon Dollar Amount of Direct Premium Written Growth for Workers’ Compensation. Quarter Ending June 30, 2009, versus June 30, 2008
| DPW $ Change Rank | Company Name | DPW $ 6/30/2009 | DPW $ 6/30/2008 | DPW $ Change | DPW % Change | 1 | Southern Insurance Co. | 94,498,242 | 20,800,246 | 73,697,996 | 354.31% | 2 | Everest National Insurance Co. | 139,878,273 | 97,141,961 | 42,736,312 | 43.99% | 3 | Sparta Insurance Co. | 46,302,748 | 6,423,930 | 39,878,818 | 620.79% | 4 | Hartford Accident & Indemnity Co. | 80,043,663 | 40,788,807 | 39,254,856 | 96.24% | 5 | Sentinel Insurance Co. Ltd. | 107,936,682 | 71,186,650 | 36,750,032 | 51.62% | 6 | National Union Fire Insurance Co. of Pitts | 400,490,061 | 367,592,792 | 32,897,269 | 8.95% | 7 | Amerisure Insurance Co. | 81,415,741 | 50,208,097 | 31,207,644 | 62.16% | 8 | Illinois National Insurance Co. | 73,077,725 | 47,697,658 | 25,380,067 | 53.21% | 9 | Discover Property & Casualty Insurance Co. | 33,199,728 | 12,150,520 | 21,049,208 | 173.24% | 10 | Benchmark Insurance Co. | 43,593,051 | 23,387,319 | 20,205,732 | 86.40% | 11 | Hartford Fire Insurance Co. | 186,614,007 | 166,596,427 | 20,017,580 | 12.02% | 12 | Star Insurance Co. | 75,854,946 | 56,385,011 | 19,469,935 | 34.53% | 13 | Indemnity Insurance Co. of North America | 134,902,526 | 115,460,705 | 19,441,821 | 16.84% | 14 | Travelers Casualty Insurance Co. of America | 60,549,728 | 42,109,390 | 18,440,338 | 43.79% | 15 | Standard Fire Insurance Co. | 55,764,970 | 37,997,346 | 17,767,624 | 46.76% | 16 | Great American Alliance Insurance Co. | 22,154,405 | 4,421,829 | 17,732,576 | 401.02% | 17 | Chubb Indemnity Insurance Co. | 58,495,304 | 41,405,453 | 17,089,851 | 41.27% | 18 | Seabright Insurance Co. | 146,761,485 | 129,821,343 | 16,940,142 | 13.05% | 19 | Midwest Employers Casualty Co. | 24,595,279 | 9,421,366 | 15,173,913 | 161.06% | 20 | Arch Insurance Co. | 122,969,599 | 108,123,556 | 14,846,043 | 13.73% | 21 | Electric Insurance Co. | 98,389,502 | 83,846,000 | 14,543,502 | 17.35% | 22 | Farmington Casualty Co. | 71,238,764 | 57,008,319 | 14,230,445 | 24.96% | 23 | Continental Insurance Co. | 60,438,633 | 46,889,485 | 13,549,148 | 28.90% | 24 | Ace Fire Underwriters Insurance Co. | 21,273,662 | 7,862,622 | 13,411,040 | 170.57% | 25 | Rochdale Insurance Co. of New York, NY | 51,649,383 | 39,366,543 | 12,282,840 | 31.20% | Top 25 Subtotal | 2,292,088,107 | 1,684,093,375 | 607,994,732 | 36.10% | All Others | 17,338,300,889 | 20,760,424,954 | -3,422,124,065 | -16.48% | Total | 19,630,388,996 | 22,444,518,329 | -2,814,129,333 | -12.54% |
|---|
Data source: The National Association of Insurance Commissioners, Kansas City, Missouri, by permission.
Information derived from a Highline Data product. Information derived from a Highline Data product. The NAIC and Highline Data do not endorse any analysis or conclusion based upon the use of its data.
Topics Trends Carriers Workers' Compensation Pricing Trends Casualty
Was this article valuable?
Here are more articles you may enjoy.
North Carolina Adjuster and Son Charged With Embezzlement in Roof Jobs 
Aon Completes $13B Acquisition of Middle-Market Broker NFP 
UnitedHealth Says Hackers Possibly Stole Large Number of Americans’ Data 
Why New York’s Attorney General Objects to Trump’s Bond Insurer 
From This Issue
