Independent property & casualty insurance agents and brokers often work with a variety of home insurers.
To keep insurance professionals up-to-date on the degree of market concentration of different insurance writers, the National Association of Insurance Commissioners (NAIC), provides annual market share data.
The 2016 market share homeowners' report includes countrywide direct written premium totals for the top 25 groups and companies as reported on the annual statement for insurers that report to the NAIC. Direct premiums written among the top 25 providers totaled $91.3 billion in 2016, compared with $89 billion in 2015 and $86.7 billion in 2014.
The top 10 providers accounted for 61.7 percent of 2016 direct premiums written, compared with 61.14 percent of direct premiums written in 2015. The top 10 providers remained the same as in 2014 and 2015, and in the same order.
The 2016 top 15 homeowners' companies by premium are as follows, according to the NAIC:
15. Progressive
Direct premiums written, 2016: $9.25 million.
Direct premiums earned, 2016: $9.27 million.
Direct loss to EP ratio (Direct losses incurred/Direct premiums earned): 49.77.
Direct loss & DCC to EP ratio*: 51.25.
Market share: 1.01 percent.
Cumulative market share (running total of the individual company market shares): 67.74 percent.
*(Direct losses incurred + Direct defense and cost containment expenses incurred) / (Direct premiums earned)
14. American International Group (AIG)
Direct premiums written, 2016: $1.10 billion.
Direct premiums earned, 2016: $1.10 billion.
Direct loss to EP ratio: 52.43.
Direct loss & DCC to EP ratio: 56.13.
Market share: 1.20 percent.
Cumulative market share: 66.72 percent.
13. Hartford Fire & Casualty
Direct premiums written, 2016: $1.11 billion.
Direct premiums earned, 2016: $1.14 billion.
Direct loss to EP ratio: 54.41.
Direct loss & DCC to EP ratio: 54.78.
Market share: 1.22 percent.
Cumulative market share: 65.53 percent.
12. Metropolitan
Direct premiums written, 2016: $1.14 billion.
Direct premiums earned, 2016: $1.15 billion.
Direct loss to EP ratio: 60.62.
Direct loss & DCC to EP ratio: 61.30.
Market share: 1.24 percent.
Cumulative market share: 64.31 percent.
11. Auto Owners
Direct premiums written, 2016: $1.25 billion.
Direct premiums earned, 2016: $1.23 billion.
Direct loss to EP ratio: 47.34.
Direct loss & DCC to EP ratio: 48.76.
Market share: 1.37 percent.
Cumulative market share: 63.06 percent.
10. Erie Insurance
Direct premiums written, 2016: $1.54 billion.
Direct premiums earned, 2016: $1.51 billion.
Direct loss to EP ratio: 46.54.
Direct loss & DCC to EP ratio: 48.60.
Market share: 1.69 percent.
Cumulative market share: 61.70 percent.
9. Chubb
Direct premiums written, 2016: $2.71 billion.
Direct premiums earned, 2016: $2.62 billion.
Direct loss to EP ratio: 53.15.
Direct loss & DCC to EP ratio: 54.38.
Market share: 2.96 percent.
Cumulative market share: 60.01 percent.
Related: My homeowners' policy covers that?
8. American Family Insurance
Direct premiums written, 2016: $2.86 billion.
Direct premiums earned, 2016: $2.70 billion.
Direct loss to EP ratio: 48.36.
Direct loss & DCC to EP ratio: 48.78.
Market share: 3.13 percent.
Cumulative market share: 57.06 percent.
7. Nationwide
Direct premiums written, 2016: $3.31 billion.
Direct premiums earned, 2016: $3.32 billion.
Direct loss to EP ratio: 57.61.
Direct loss & DCC to EP ratio: 58.93.
Market share: 3.61 percent.
Cumulative market share: 53.93 percent.
6. Travelers
Direct premiums written, 2016: $3.40 billion.
Direct premiums earned, 2016: $3.35 billion.
Direct loss to EP ratio: 45.67.
Direct loss & DCC to EP ratio: 47.37.
Market share: 3.71 percent.
Cumulative market share: 50.31 percent.
5. USAA
Direct premiums written, 2016: $5.34 billion.
Direct premiums earned, 2016: $5.13 billion.
Direct loss to EP ratio: 69.37.
Direct loss & DCC to EP ratio: 69.77.
Market share: 5.85 percent.
Cumulative market share: 46.60 percent.
4. Farmers Insurance
Direct premiums written, 2016: $5.52 billion.
Direct premiums earned, 2016: $5.42 billion.
Direct loss to EP ratio: 53.84.
Direct loss & DCC to EP ratio: 54.97.
Market share: 6.04 percent.
Cumulative market share: 40.75 percent.
3. Liberty Mutual
Direct premiums written, 2016: $6.16 billion.
Direct premiums earned, 2016: $6.09 billion.
Direct loss to EP ratio: 51.58.
Direct loss & DCC to EP ratio: 53.02.
Market share: 6.75 percent.
Cumulative market share: 34.71 percent.
2. Allstate
Direct premiums written, 2016: $7.90 billion.
Direct premiums earned, 2016: $7.91 billion.
Direct loss to EP ratio: 49.98.
Direct loss & DCC to EP ratio: 51.73.
Market share: 8.66 percent.
Cumulative market share: 27.96 percent.
1. State Farm
Direct premiums written, 2016: $17.61 billion.
Direct premiums earned, 2016: $17.72 billion.
Direct loss to EP ratio: 54.20.
Direct loss & DCC to EP ratio: 55.57.
Market share: 19.30 percent.
Cumulative market share: 19.30 percent.
Related: 7 homeowners trends for 2017
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Jayleen R. Heft
Jayleen Heft is the digital content editor for PropertyCasualty360.com. Contact her at [email protected].
