For the past 20 years, the Ward Group has analyzed the financial performance of thousands of P&C insurers in the U.S. to compile a top 50 list of those that are demonstrating the most financial stability. This year, Ward examined more than 3,000 P&C companies, noting nine new additions to last year's top performers.
New to the list this year are Alleghany Group, Allstate Insurance Company, Amica Mutual Insurance Group, Andover Companies, CSE Insurance Group, Franklin Mutual Insurance Group, Goodville Mutual Casualty Company, Kentucky Employers' Mutual Insurance, and ProMutual Group.
By contrast, Ward noted some fallen stars. Several companies that appeared in 2009's top 50 failed to make this year's list, including Central Insurance Companies, Farmers Mutual Insurance of Nebraska, Hastings Mutual Insurance Company, ICW Group Insurance Companies, Selective Insurance Company of America, Shelter Insurance Group, Tennessee Farmers Mutual Insurance Co., United Fire & Casualty Group, and Utica National Insurance Group.
When compared to the rest of the industry, this year's crop of top insurance companies produced a 14.3 percent return on average equity from 2005 to 2009, compared to 9.2 percent for the P&C industry overall. Additionally, Ward said its top 50 insurers compared 7.3 points lower for the five year combined ratio (91.4 percent compared to 98.7 percent) and grew policyholder surplus by 31.6 percent compared to 19.1 percent for the industry since 2005. Net premiums written for the top 50 grew 3.2 percent, compared to the industry's 3.1 percent decline.
In its explanation of the 2010 results, the company elaborated on the selection criteria. Specifically, Ward said that a recurring theme with these 50 companies is achieving greater levels of efficiency.
“Although we do not directly use expenses as a factor in the Ward's 50 evaluation, a common attribute of the top performing segment is the ability to operate at lower expense ratios,” said Jeff Rieder, president of Ward Group, in a release. “Our research consistently finds the top companies achieve a proper balance between managing expenses and making prudent investments in systems or processes to meet customer needs and corporate goals.”
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
