Direct premium written (DPW) for property/casualty insurance companies continues to increase, albeit gradually. At year-end 2016, approximately $606 billion of DPW was reported, a record high for the industry. For 2016, total DPW for all P/C insurers aggregately increased 4 percent from 2015, an increase of $23.4 billion. Through the second quarter of 2017, the industry’s growth trend has continued, as DPW for all P/C insurers aggregately increased 4.5 percent from 2016.
For the six months ending June 30, 2017, P/C companies comprising the Top 25 insurers in terms of DPW increased their DPW 13.3 percent during the first six months of 2016. This continues the Top 25 insurers’ impressive display of premium growth and financial stability. The Top 25 accounted for 56 percent of the growth in the P/C insurance industry’s DPW. In contrast, the remainder of the industry reported an increase in DPW of 2.4 percent, or $5.9 billion year over year.
Although the market continues to exhibit signs of firming and DPW continues to increase, P/C insurers should not expect a traditional hard market in the near future. More importantly, it is possible that the double-digit premium growth experienced in the historical hard market cycles may have created unrealistic premium growth expectations for this current recovery.
It is more realistic that expectations should relate to gradual, stable growth. There is always a fair amount of uncertainty in making projections based on second quarter data, but if the industry holds to its 10-year historical pattern, growth in 2017 would again result in the highest level of year-end DPW ever reported by the P/C industry.
| Company Name | DPW 6/30/2017 | DPW 6/30/2016 | $ Growth | % Growth |
|---|---|---|---|---|
| State Farm Mutual Automobile Insurance Co. | $19,831,055,960 | $18,260,514,642 | $1,570,541,318 | 8.60% |
| GEICO General Insurance Co. | $4,661,208,619 | $4,213,673,249 | $447,535,370 | 10.62% |
| Stratford Insurance Co. | $382,763,406 | $9,333,778 | $373,429,628 | 4000.84% |
| Liberty Insurance Underwriters Inc. | $1,664,890,626 | $1,342,546,646 | $322,343,980 | 24.01% |
| GEICO Casualty Co. | $2,096,015,446 | $1,783,811,175 | $312,204,271 | 17.50% |
| American Family Insurance Co. | $623,087,556 | $315,701,635 | $307,385,921 | 97.37% |
| GEICO County Mutual Insurance Co. | $797,234,705 | $507,651,840 | $289,582,865 | 57.04% |
| GEICO Indemnity Co. | $2,870,509,364 | $2,581,849,811 | $288,659,553 | 11.18% |
| Allstate Fire and Casualty Insurance Co. | $4,043,457,036 | $3,765,498,373 | $277,958,663 | 7.38% |
| USAA General Indemnity Co. | $1,886,597,185 | $1,615,428,431 | $271,168,754 | 16.79% |
| USAA Casualty Insurance Co. | $3,045,908,101 | $2,788,118,193 | $257,789,908 | 9.25% |
| Liberty County Mutual Insurance Co. | $567,510,433 | $311,729,070 | $255,781,363 | 82.05% |
| American Bankers Insurance Co. of Florida | $2,022,772,924 | $1,773,126,261 | $249,646,663 | 14.08% |
| GEICO Advantage Insurance Co. | $647,160,882 | $408,859,979 | $238,300,903 | 58.28% |
| Farmers Insurance Exchange | $2,168,403,214 | $1,945,193,044 | $223,210,170 | 11.47% |
| Government Employees Insurance Co. | $2,866,018,904 | $2,644,221,503 | $221,797,401 | 8.39% |
| United Services Automobile Association | $3,803,982,871 | $3,593,960,181 | $210,022,690 | 5.84% |
| Ohio Security Insurance Co. | $977,508,984 | $770,302,702 | $207,206,282 | 26.90% |
| LM General Insurance Co. | $1,655,506,187 | $1,454,308,541 | $201,197,646 | 13.83% |
| ACE American Insurance Co. | $2,310,937,099 | $2,113,566,604 | $197,370,495 | 9.34% |
| Allstate Vehicle and Property Insurance Co. | $1,055,267,124 | $867,659,980 | $187,607,144 | 21.62% |
| Auto-Owners Insurance Co. | $1,649,258,957 | $1,466,491,110 | $182,767,847 | 12.46% |
| Integon National Insurance Co. | $631,910,766 | $456,707,592 | $175,203,174 | 38.36% |
| NAU Country Insurance Co. | $1,138,440,243 | $974,336,822 | $164,103,421 | 16.84% |
| Progressive County Mutual Insurance Co. | $1,157,723,108 | $994,503,447 | $163,219,661 | 16.41% |
| Top 25 P/C Companies by DPW Growth | $64,555,129,700 | $56,959,094,609 | $7,596,035,091 | 13.34% |
| All Other P/C Companies | $252,455,168,112 | $246,515,741,803 | $5,939,426,309 | 2.41% |
| Total | $317,010,297,812 | $303,474,836,412 | $13,535,461,400 | 4.46% |
Was this article valuable?
Here are more articles you may enjoy.
Grand Jury Indicts ‘Hole in Won’ Owner on Prize Insurance Fraud Charges 
Trump’s Bond Insurer Tells Judge Shortfall Is ‘Inconceivable’ 
California Chiropractor Sentenced to 54 Years for $150M Workers’ Comp Scheme 
California Sees Two More Property Insurers Withdraw From Market 
From This Issue
