Kentucky Property-Casualty Insurance Marketplace Report

MARKETPLACE SUMMARY

Kentucky Property-Casualty Insurance Marketplace Report JULY 2021

This report provides a summary of the 2020 property-casualty (p-c) insurance marketplace.

Unlike most industry watchers of insurer profitability and insolvency, we used direct written premiums - not net written premiums. This is to be consistent with our member agent’s view of the insurance world.

Data source and tips on how to read the data can be found on the last page. © 2020, Big I Kentucky. All rights reserved.

P-C Insurance Industry Analysis Provided by: Real Insurance Solutions Consulting, LLC Paul A. Buse, Principal realinsurancesc.com 301.842.7472

_________________________________

BIGIKY.ORG

2020 Kentucky Direct Written Premium

You are being provided this summary of the Kentucky property and casualty (P-C) insurance marketplace as a benefit of your membership in the Big I Kentucky.

What follows is a numeric and visual summary of the P-C insurance marketplace from an independent agent’s perspective in Kentucky.

Source: © A.M. Best Company — Used by Permission; US Census Bureau

Kentucky accounts for about 1.1% of all U.S. direct written p-c premiums or a total of $8 billion in direct written premiums. That is proportionately below average as can be seen in the per capita premiums.

With approximately 4.5 million persons in Kentucky versus the 328 million persons in the U.S., p-c premiums per person in Kentucky are almost $1,800 versus the U.S. average of just over $2,100.

© 2020, Big I Kentucky. All rights reserved.

Kentucky All LOB’s: Premium and Distribution 2020 Kentucky Direct Written Premium (DPW in $Millions)

Major Line of Business (L.O.B.)

(1) All Distribution

(2) Pure IA or Broker DPW

(3) MGA/Wholesale DPW

(4) IA-Mixed DPW

(5) ExclusiveCaptive DPW

(6) Direct DPW

(7) Other

(2+3+4)÷(1) IA Penetration

Aggregate Write-ins

$34

$6

$0

$0

$2

$24

$0

21%

Aircraft (all perils)

$82

$75

$1

$0

$0

$6

$0

92%

All Commercial Auto

$1,297

$1,073

$85

$17

$63

$52

$7

91%

All Private Passenger Auto

$6,859

$2,647

$79

$96

$2,300

$1,734

$4

41%

$84

$48

$1

$30

$1

$3

$0

95%

Boiler & Machinery Burglary & Theft

$20

$17

$0

$1

$0

$0

$0

95%

$1,428

$1,202

$32

$26

$138

$29

$2

88%

Credit

$65

$40

$6

$0

$16

$2

$1

70%

Excess Workers’ Comp

$93

$82

$2

$0

$1

$8

$0

90%

Farmowners Multi-Peril

$183

$126

$0

$0

$13

$43

$0

69%

$41

$36

$1

$0

$1

$2

$0

92%

$3

$0

$0

$0

$0

$1

$2

0%

Commercial Multi-Peril

Fidelity Financial Guaranty Fire & Allied Lines

$1,111

$764

$112

$145

$19

$65

$6

92%

Homeowners Multi-Peril

$3,163

$1,599

$124

$29

$1,006

$404

$3

55%

Inland Marine

$699

$398

$36

$39

$200

$24

$2

68%

Medical Malpractice

$244

$112

$16

$97

$8

$15

-$3

92%

Mortgage Guaranty

$186

$31

$0

$0

$0

$108

$47

16%

$62

$57

$4

$0

$0

$1

$0

98%

Ocean Marine Other Liability (Claims-made)

$777

$666

$42

$7

$6

$23

$33

92%

$1,246

$989

$68

$17

$73

$73

$26

86%

Products Liability

$129

$111

$8

$0

$2

$4

$5

92%

Surety

$165

$134

$12

$0

$6

$12

$1

89%

$78

$45

$0

$0

$31

$2

$0

57%

Other Liability (Occurrence)

Warranty Workers’ Compensation TTL Grps I+II (All Typical Lines)

$16

$13

$0

$0

$0

$3

$0

85%

$18,063

$10,270

$629

$505

$3,887

$2,639

$135

63%

Source: © A.M. Best Company — used by permission.

The “Lines of Business” (L.O.B.) listed above are taken from an annual statement page each insurer must file with their state regulator. Regulators require 34 lines of business break-outs from insurers in every state where business is written.

The above table shows the estimated premium distribution through independent agents, MGAs and IA-mixed distribution is 63%.

Source: © A.M. Best Company — used by permission. © 2020, Big I Kentucky. All rights reserved.

Kentucky Loss Ratios

Source: © A.M. Best Company — used by permission.

Loss ratios in this summary are calculated as “adjusted calendar year loss ratios.” This means for each L.O.B. the losses used in the ratio of losses to earned premiums are the paid losses that year, plus any estimates of future losses that will be paid from claims that year (also known as “reserves”) plus any changes in “reserves” from prior years.

The “adjusted” part is if dividends are paid out under a L.O.B., the loss ratio is adjusted for that cost. When dividends paid out are a minor factor, an adjusted and unadjusted loss ratio is nearly the same but, where dividends are an important component, it is important to include them in the calculation.

© 2020, Big I Kentucky. All rights reserved.

Kentucky Premium Growth Rates

Source: © A.M. Best Company — used by permission.

Direct written premium growth rates are shown above. The five-year growth rate is, mathematically, the constant percentage for 2016 direct written premiums to exactly equal the direct written premium in 2020 when applied annually for the five annual periods on a compounded basis. The one-year percentage is the change in premiums from 2019 to 2020. As this single growth figure does not show variability between years it is also helpful to examine premium trends by reviewing all years.

© 2020, Big I Kentucky. All rights reserved.

Kentucky vs. National Agent Premiums, by Line

Source: © A.M. Best Company — used by permission.

The top chart shows independent agent premium in Kentucky for 2020, totaling $3.9 billion of $8 billion sold by all forms of distribution in Kentucky.

In contrast, the bottom chart shows IA premium in the U.S. in 2020. © 2020, Big I Kentucky. All rights reserved.

Kentucky vs. National Total Premiums, by Line

Source: © A.M. Best Company — used by permission.

© 2020, Big I Kentucky. All rights reserved.

Kentucky Largest Independent Agent LOBs Following is more detail on each of the top nine Lines of Business (L.O.B.s) in Kentucky for the years 2016 to 2020. All lines are combined, in aggregate, in the tenth summary. That is the top nine plus any other L.O.B. of significance to independent agents. The order of the L.O.B.s presented is the ranking, by premium volume, as written by independent agents in Kentucky.

PROVIDED FOR EACH MAJOR LINE OF BUSINESS ARE: • A summary graph of five-year’s data on premiums for all distribution types (dark blue), premiums written through independent agents (light blue) and loss ratios (red line). For these graphs the delineation of premiums through Independent Agents is that of A.M. Best in their standard industry reports • The average premium trend for all distribution and through independent insurance agents • The portion of premiums written though U.S.-domiciled surplus lines insurers • The average five-year combined ratio • The number of active insurer groups and policy-issuing insurers in Kentucky • Top Insurers: The top five groups and the market share of that line of business by those groups is provided. This includes all premiums and all distributions combined for each group. Also provided is top ten top policy-issuing insurers using independent agencies/brokers. For each insurer, average commission rates and adjusted loss ratios are provided as is any parent group or fleet.

© 2020, Big I Kentucky. All rights reserved.

Kentucky Total - All Lines of Business (LOB)

2020 - Kentucky - TTL Grps I+II (All Typical Lines) Average Penetration: 47.3% All Distribution Trend (DPW)

Ind. Agent Trend (DPW)

5 yr. Loss Adj. Ratio

5 yr. Combined Ratio

Domestic Surplus Lines ÷ ALL DPW

3.2%

4.8%

58%

90%

3.23%

Active Groups |Pol. Issuing | S.L. | RRGs =>

Groups: 177

Affil+Unaffil: 806

S.L. Insurers: 124

RRGs: 58

Top 5 Groups or Unaffil. [Mkt Share%]

2020 DPW

2020 Adj. Loss Ratio

2020 Commission

Group Name or ALL L.O.B. DPW

Kentucky Farm Bureau Group (G) [13.2%]

$1,055,405,000

61%

N/A

$1,055,405,000

State Farm Group (G) [13.1%]

$1,051,635,000

60%

N/A

$1,051,635,000

Liberty Mutual Ins Cos (G) [7.5%]

$597,583,000

49%

N/A

$597,583,000

Progressive Ins Grp (G) [5.6%]

$446,164,000

53%

N/A

$446,164,000

$301,113,000

44%

N/A

$301,113,000

$8,012,312,000

53%

11.7%

$8,012,306,000

Allstate Ins Grp (G) [3.8%] L.O.B. Total or Industry Ave.

Top 10 IA Insurers Progressive Casualty Ins Co

$170,047,000

56.8%

11.2%

Progressive Ins Grp

Cincinnati Ins Co

$142,625,000

44.2%

18.6%

The Cincinnati Ins Cos

Auto-Owners Ins Co

$130,820,000

47.4%

17.7%

Auto-Owners Ins Grp

Kentucky Employers’ Mutual Ins Authority

$122,305,000

54.4%

10.8%

...

Erie Insurance Exchange

$108,344,000

73.2%

14.3%

Erie Ins Grp

Safeco Ins Co of Illinois

$108,024,000

54.0%

12.9%

Liberty Mutual Ins Cos

Continental Casualty Company

$85,001,000

40.1%

13.6%

CNA Ins Cos

Safeco Ins Co of America

$69,829,000

40.0%

19.8%

Liberty Mutual Ins Cos

Standard Fire Ins Co

$65,952,000

50.0%

13.7%

Travelers Group

Zurich American Ins Co

$63,516,000

45.8%

7.0%

Zurich Insurance US PC Group

Source: © A.M. Best Company — used by permission.

© 2020, Big I Kentucky. All rights reserved.

Kentucky Major Lines of Business (LOB)

All Distribution Trend (DPW)

Ind. Agent Trend (DPW)

5 yr. Loss Adj. Ratio

5 yr. Combined Ratio

Domestic Surplus Lines ÷ ALL DPW

3.1%

6.8%

65%

93%

0.00%

Active Groups |Pol. Issuing | S.L. | RRGs =>

Groups: 50

Affil+Unaffil: 122

S.L. Insurers: 0

RRGs: 0

Top 5 Groups or Unaffil. [Mkt Share%]

2020 DPW

2020 Adj. Loss Ratio

2020 Commission

Group Name or ALL L.O.B. DPW

State Farm Group (G) [21.5%]

$682,748,000

64%

N/A

$1,051,635,000

Kentucky Farm Bureau Group (G) [18.0%]

$569,764,000

64%

N/A

$1,055,405,000

Progressive Ins Grp (G) [11.7%]

$371,070,000

55%

N/A

$446,164,000

Liberty Mutual Ins Cos (G) [8.5%]

$269,225,000

53%

N/A

$597,583,000

Allstate Ins Grp (G) [6.2%]

$196,180,000

46%

N/A

$301,113,000

L.O.B. Total or Industry Ave.

$3,170,569,000

59%

8.9%

$8,012,306,000

Progressive Casualty Ins Co

$167,114,000

57.0%

11.2%

Progressive Ins Grp

Safeco Ins Co of Illinois

$108,024,000

54.0%

12.9%

Liberty Mutual Ins Cos

Erie Insurance Exchange

$79,383,000

77.6%

13.5%

Erie Ins Grp

Auto-Owners Ins Co

$65,748,000

56.2%

16.8%

Auto-Owners Ins Grp

Standard Fire Ins Co

$55,303,000

49.8%

13.8%

Travelers Group

Grange Property & Casualty Insurance Co

$23,025,000

35.0%

14.8%

Grange Insurance Pool

Cincinnati Ins Co

$22,835,000

37.9%

17.4%

The Cincinnati Ins Cos

Kentucky National Ins Co

$19,881,000

49.4%

14.6%

...

Trexis Insurance Corporation

$18,956,000

48.7%

14.7%

Alfa Ins Grp

Meridian Security Ins Co

$16,286,000

52.8%

14.2%

State Auto Ins Cos

Top 10 IA Insurers

Source: © A.M. Best Company — used by permission.

© 2020, Big I Kentucky. All rights reserved.

Kentucky Major Lines of Business (LOB)

2020 - Kentucky - Workers’ Compensation Average Penetration: 88.9% All Distribution Trend (DPW)

Ind. Agent Trend (DPW)

5 yr. Loss Adj. Ratio

5 yr. Combined Ratio

Domestic Surplus Lines ÷ ALL DPW

-1.1%

-0.3%

63%

93%

0.00%

Active Groups |Pol. Issuing | S.L. | RRGs =>

Groups: 87

Affil+Unaffil: 302

S.L. Insurers: 0

RRGs: 0

2020 DPW

2020 Adj. Loss Ratio

2020 Commission

Group Name or ALL L.O.B. DPW

Kentucky Employers’ Mutual Ins Authority [25.1%]

$122,305,000

54%

N/A

$122,305,000

ClearPath Mutual Ins Co [9.0%]

$43,638,000

44%

N/A

$43,638,000

Travelers Group (G) [6.8%]

$33,297,000

63%

N/A

$298,521,000

Zurich Insurance US PC Group (G) [5.7%]

$27,741,000

73%

N/A

$138,286,000

Liberty Mutual Ins Cos (G) [4.8%]

$23,137,000

36%

N/A

$597,583,000

L.O.B. Total or Industry Ave.

$486,835,000

52%

9.3%

$8,012,306,000

Kentucky Employers’ Mutual Ins Authority

$122,305,000

54.4%

10.8%

...

Zurich American Ins Co

$18,609,000

95.1%

4.6%

Zurich Insurance US PC Group

Bridgefield Casualty Ins Co

$16,270,000

43.4%

10.2%

Great American P & C Ins Grp

Travelers Property Casualty Co of Amer

$8,514,000

67.7%

6.3%

Travelers Group

Indemnity Insurance Co of North America

$7,836,000

2.6%

0.1%

Chubb INA Group

Ohio Security Ins Co

$7,182,000

62.0%

8.8%

Liberty Mutual Ins Cos

Standard Fire Ins Co

$6,325,000

51.7%

10.1%

Travelers Group

New Hampshire Ins Co

$5,438,000

207.7%

1.1%

American International Group

American Zurich Ins Co

$5,380,000

38.3%

2.5%

Zurich Insurance US PC Group

Rockwood Casualty Ins Co

$4,994,000

20.3%

21.2%

Argo Group

Top 5 Groups or Unaffil. [Mkt Share%]

Top 10 IA Insurers

Source: © A.M. Best Company — used by permission.

© 2020, Big I Kentucky. All rights reserved.

Kentucky Major Lines of Business (LOB)

2020 - Kentucky - All Commercial Auto Average Penetration: 80.1% All Distribution Trend (DPW)

Ind. Agent Trend (DPW)

5 yr. Loss Adj. Ratio

5 yr. Combined Ratio

Domestic Surplus Lines ÷ ALL DPW

6.1%

7.8%

63%

101%

1.32%

Active Groups |Pol. Issuing | S.L. | RRGs =>

Groups: 100

Affil+Unaffil: 325

S.L. Insurers: 39

RRGs: 11

2020 DPW

2020 Adj. Loss Ratio

2020 Commission

Group Name or ALL L.O.B. DPW

Progressive Ins Grp (G) [8.4%]

$42,952,000

44%

N/A

$446,164,000

Travelers Group (G) [6.9%]

$35,433,000

76%

N/A

$298,521,000

Liberty Mutual Ins Cos (G) [5.7%]

$29,112,000

63%

N/A

$597,583,000

Auto-Owners Ins Grp (G) [5.3%]

$27,167,000

53%

N/A

$190,688,000

The Cincinnati Ins Cos (G) [4.9%]

$25,204,000

46%

N/A

$172,344,000

L.O.B. Total or Industry Ave.

$510,536,000

56%

13.8%

$8,012,306,000

Top 5 Groups or Unaffil. [Mkt Share%]

Top 10 IA Insurers Owners Ins Co

$25,925,000

55.5%

16.6%

Auto-Owners Ins Grp

Cincinnati Ins Co

$21,543,000

49.5%

18.0%

The Cincinnati Ins Cos

Acuity, A Mutual Ins Co

$18,919,000

42.2%

16.3%

...

Motorists Commercial Mutual Insurance Co

$17,169,000

62.0%

16.0%

Encova Mutual Ins Grp

Travelers Property Casualty Co of Amer

$13,802,000

62.5%

15.3%

Travelers Group

Great West Casualty Company

$11,759,000

37.4%

11.4%

Old Republic Ins Grp

Zurich American Ins Co

$11,122,000

43.4%

6.8%

Zurich Insurance US PC Group

National Union Fire Ins Co Pittsburgh PA

$9,665,000

45.2%

16.5%

American International Group

Ohio Security Ins Co

$8,505,000

54.3%

15.0%

Liberty Mutual Ins Cos

SECURA Ins Co

$8,423,000

39.4%

17.8%

SECURA Ins Cos

Source: © A.M. Best Company — used by permission.

© 2020, Big I Kentucky. All rights reserved.

Kentucky Major Lines of Business (LOB)

2020 - Kentucky - Commercial Multi-Peril Average Penetration: 68.0% All Distribution Trend (DPW)

Ind. Agent Trend (DPW)

5 yr. Loss Adj. Ratio

5 yr. Combined Ratio

Domestic Surplus Lines ÷ ALL DPW

3.4%

4.4%

47%

87%

3.35%

Active Groups |Pol. Issuing | S.L. | RRGs =>

Groups: 90

Affil+Unaffil: 294

S.L. Insurers: 57

RRGs: 0

Top 5 Groups or Unaffil. [Mkt Share%]

2020 DPW

2020 Adj. Loss Ratio

2020 Commission

Group Name or ALL L.O.B. DPW

Kentucky Farm Bureau Group (G) [11.5%]

$66,915,000

47%

N/A

$1,055,405,000

Liberty Mutual Ins Cos (G) [9.4%]

$54,886,000

47%

N/A

$597,583,000

The Cincinnati Ins Cos (G) [8.5%]

$49,400,000

47%

N/A

$172,344,000

Travelers Group (G) [6.6%]

$38,445,000

5%

N/A

$298,521,000

Auto-Owners Ins Grp (G) [5.5%]

$31,933,000

40%

N/A

$190,688,000

L.O.B. Total or Industry Ave.

$584,215,000

41%

16.7%

$8,012,306,000

Top 10 IA Insurers Cincinnati Ins Co

$40,249,000

48.0%

19.3%

The Cincinnati Ins Cos

Ohio Security Ins Co

$24,394,000

36.9%

15.7%

Liberty Mutual Ins Cos

Owners Ins Co

$24,250,000

36.6%

19.3%

Auto-Owners Ins Grp

Erie Insurance Exchange

$16,930,000

41.9%

19.3%

Erie Ins Grp

Brotherhood Mutual Ins Co

$14,366,000

42.2%

16.8%

...

Grange Ins Co

$14,012,000

48.7%

18.1%

Grange Insurance Pool

Motorists Commercial Mutual Ins Co

$13,657,000

33.1%

16.0%

Encova Mutual Ins Grp

Westfield Ins Co

$13,390,000

23.2%

16.2%

Westfield Group

Netherlands Ins Co

$13,182,000

31.7%

15.0%

Liberty Mutual Ins Cos

Philadelphia Indemnity Ins Co

$12,864,000

47.0%

14.5%

Tokio Marine US PC Group

Source: © A.M. Best Company — used by permission.

© 2020, Big I Kentucky. All rights reserved.

Kentucky Major Lines of Business (LOB)

2020 - Kentucky - Fire & Allied Lines Average Penetration: 74.6% All Distribution Trend (DPW)

Ind. Agent Trend (DPW)

5 yr. Loss Adj. Ratio

5 yr. Combined Ratio

Domestic Surplus Lines ÷ ALL DPW

5.8%

5.8%

59%

87%

11.01%

Active Groups |Pol. Issuing | S.L. | RRGs =>

Groups: 102

Affil+Unaffil: 341

S.L. Insurers: 78

RRGs: 0

Top 5 Groups or Unaffil. [Mkt Share%]

2020 DPW

2020 Adj. Loss Ratio

2020 Commission

Group Name or ALL L.O.B. DPW

Zurich Insurance US PC Group (G) [10.8%]

$58,130,000

54%

N/A

$138,286,000

FM Global Group (G) [10.2%]

$55,063,000

29%

N/A

$86,528,000

Sompo Holdings US Group (G) [10.0%]

$54,101,000

73%

N/A

$76,673,000

QBE North America Ins Grp (G) [5.6%]

$30,027,000

78%

N/A

$43,307,000

American International Group (G) [4.1%]

$22,331,000

37%

N/A

$89,635,000

L.O.B. Total or Industry Ave.

$539,423,000

44%

11.0%

$8,012,306,000

16.0%

QBE North America Ins Grp

Top 10 IA Insurers NAU Country Ins Co

$29,436,000

78.9%

Zurich American Ins Co

$16,446,000

37.5%

2.6%

Zurich Insurance US PC Group

Underwriters at Lloyd’s, London (KY)

$13,480,000

55.8%

20.7%

...

Safeco Ins Co of America

$11,819,000

28.8%

14.6%

Liberty Mutual Ins Cos

Auto-Owners Ins Co

$11,707,000

18.5%

17.0%

Auto-Owners Ins Grp

Farmers Mutual Hail Insurance Co of Iowa

$9,967,000

52.1%

14.8%

FMH Ins Grp

State Auto Property & Casualty Ins Co

$9,612,000

27.1%

17.7%

State Auto Ins Cos

Great American Ins Co

$9,194,000

17.1%

15.3%

Great American P & C Ins Grp

HDI Global Ins Co

$8,149,000

8.5%

4.7%

HDI/Talanx US PC Group

Cincinnati Ins Co

$6,357,000

12.3%

18.6%

The Cincinnati Ins Cos

Source: © A.M. Best Company — used by permission.

© 2020, Big I Kentucky. All rights reserved.

Kentucky Major Lines of Business (LOB)

2020 - Kentucky - Homeowners Multi-Peril Average Penetration: 25.8% All Distribution Trend (DPW)

Ind. Agent Trend (DPW)

5 yr. Loss Adj. Ratio

5 yr. Combined Ratio

Domestic Surplus Lines ÷ ALL DPW

3.1%

6.3%

51%

81%

0.05%

Active Groups |Pol. Issuing | S.L. | RRGs =>

Groups: 53

Affil+Unaffil: 121

S.L. Insurers: 7

RRGs: 0

2020 DPW

2020 Adj. Loss Ratio

2020 Commission

Group Name or ALL L.O.B. DPW

State Farm Group (G) [23.7%]

$304,447,000

56%

N/A

$1,051,635,000

Kentucky Farm Bureau Group (G) [20.7%]

$265,311,000

62%

N/A

$1,055,405,000

Liberty Mutual Ins Cos (G) [9.7%]

$124,797,000

38%

N/A

$597,583,000

Allstate Ins Grp (G) [6.6%]

$84,807,000

44%

N/A

$301,113,000

USAA Group (G) [5.4%]

$69,006,000

59%

N/A

$243,478,000

$1,282,737,000

53%

12.9%

$8,012,306,000

Top 5 Groups or Unaffil. [Mkt Share%]

L.O.B. Total or Industry Ave.

Top 10 IA Insurers Safeco Ins Co of America

$51,592,000

41.4%

16.7%

Liberty Mutual Ins Cos

Allstate Vehicle and Property Ins Co

$43,166,000

45.8%

11.2%

Allstate Ins Grp

Auto-Owners Ins Co

$36,558,000

51.4%

19.8%

Auto-Owners Ins Grp

Erie Ins Co

$34,473,000

40.9%

15.4%

Erie Ins Grp

American Strategic Insurance Corp.

$23,717,000

50.7%

15.8%

Progressive Ins Grp

Travelers Home and Marine Ins Co

$22,996,000

51.4%

17.4%

Travelers Group

Cincinnati Ins Co

$22,554,000

48.3%

19.1%

The Cincinnati Ins Cos

Travelers Personal Ins Co

$20,193,000

49.8%

16.8%

Travelers Group

State Auto Property & Casualty Ins Co

$14,215,000

35.2%

17.6%

State Auto Ins Cos

Kentucky Growers Ins Co

$13,861,000

61.0%

0.0%

...

Source: © A.M. Best Company — used by permission.

© 2020, Big I Kentucky. All rights reserved.

Kentucky Major Lines of Business (LOB)

2020 - Kentucky - Other Liability (Occurrence) Average Penetration: 77.6% All Distribution Trend (DPW)

Ind. Agent Trend (DPW)

5 yr. Loss Adj. Ratio

5 yr. Combined Ratio

Domestic Surplus Lines ÷ ALL DPW

6.0%

6.6%

61%

104%

19.36%

Active Groups |Pol. Issuing | S.L. | RRGs =>

Groups: 122

Affil+Unaffil: 470

S.L. Insurers: 101

RRGs: 19

Top 5 Groups or Unaffil. [Mkt Share%]

2020 DPW

2020 Adj. Loss Ratio

2020 Commission

Group Name or ALL L.O.B. DPW

Liberty Mutual Ins Cos (G) [6.3%]

$24,272,000

67%

N/A

$597,583,000

Travelers Group (G) [6.0%]

$22,915,000

57%

N/A

$298,521,000

Chubb INA Group (G) [6.0%]

$22,875,000

166%

N/A

$137,066,000

The Cincinnati Ins Cos (G) [5.7%]

$21,824,000

65%

N/A

$172,344,000

Kentucky Farm Bureau Group (G) [4.2%]

$15,989,000

58%

N/A

$1,055,405,000

L.O.B. Total or Industry Ave.

$382,448,000

72%

13.1%

$8,012,306,000

Top 10 IA Insurers Cincinnati Ins Co

$14,445,000

68.0%

17.3%

The Cincinnati Ins Cos

Travelers Property Casualty Co of Amer

$13,879,000

52.7%

12.8%

Travelers Group

National Union Fire Ins Co Pittsburgh PA

$7,892,000

311.3%

6.8%

American International Group

Old Republic Ins Co

$7,749,000

46.5%

0.5%

Old Republic Ins Grp

Zurich American Ins Co

$6,713,000

4.3%

8.3%

Zurich Insurance US PC Group

ACE Property and Casualty Insurance Co

$6,203,000

74.3%

7.8%

Chubb INA Group

Continental Ins Co

$5,952,000

6.2%

14.7%

CNA Ins Cos

ACE American Ins Co

$5,905,000

11.8%

2.1%

Chubb INA Group

National Fire & Marine Insurance Co

$5,273,000

23.4%

12.9%

Berkshire Hathaway Ins Grp

Acuity, A Mutual Ins Co

$5,226,000

-20.5%

18.0%

...

Source: © A.M. Best Company — used by permission.

© 2020, Big I Kentucky. All rights reserved.

Kentucky Major Lines of Business (LOB)

2020 - Kentucky - Inland Marine Average Penetration: 77.4% All Distribution Trend (DPW)

Ind. Agent Trend (DPW)

5 yr. Loss Adj. Ratio

5 yr. Combined Ratio

Domestic Surplus Lines ÷ ALL DPW

3.7%

2.2%

51%

87%

2.33%

Active Groups |Pol. Issuing | S.L. | RRGs =>

Groups: 101

Affil+Unaffil: 324

S.L. Insurers: 50

RRGs: 0

Top 5 Groups or Unaffil. [Mkt Share%]

2020 DPW

2020 Adj. Loss Ratio

2020 Commission

Group Name or ALL L.O.B. DPW

CNA Ins Cos (G) [23.4%]

$65,999,000

52%

N/A

$136,569,000

Liberty Mutual Ins Cos (G) [10.0%]

$28,046,000

73%

N/A

$597,583,000

Underwriters at Lloyd’s, London (KY) [5.5%]

$15,443,000

69%

N/A

$38,968,000

FM Global Group (G) [5.3%]

$14,989,000

39%

N/A

$86,528,000

Great American P & C Ins Grp (G) [4.5%]

$12,743,000

29%

N/A

$82,789,000

L.O.B. Total or Industry Ave.

$281,546,000

55%

16.0%

$8,012,306,000

Continental Casualty Company

$65,516,000

52.2%

12.5%

CNA Ins Cos

Top 10 IA Insurers Underwriters at Lloyd’s, London (KY)

$15,443,000

69.2%

20.7%

...

Great American Assurance Company

$11,428,000

31.0%

15.3%

Great American P & C Ins Grp

North American Specialty Insurance Co

$6,988,000

247.0%

24.1%

Swiss ReIns Grp

XL Specialty Ins Co

$5,539,000

45.3%

16.9%

XL Reinsurance America Group

Travelers Property Casualty Co of Amer

$5,355,000

46.5%

17.8%

Travelers Group

American Bankers Insurance Co of Florida

$4,630,000

21.3%

21.4%

Assurant P&C Group

AGCS Marine Ins Co

$3,962,000

59.5%

9.3%

Allianz US PC Ins Cos

Cincinnati Ins Co

$3,646,000

26.1%

21.1%

The Cincinnati Ins Cos

Zurich American Ins Co

$3,195,000

15.7%

35.0%

Zurich Insurance US PC Group

Source: © A.M. Best Company — used by permission.

© 2020, Big I Kentucky. All rights reserved.

Kentucky Major Lines of Business (LOB)

2020 - Kentucky - Other Liability (Claims-made) Average Penetration: 86.7% All Distribution Trend (DPW)

Ind. Agent Trend (DPW)

5 yr. Loss Adj. Ratio

5 yr. Combined Ratio

Domestic Surplus Lines ÷ ALL DPW

3.5%

3.8%

37%

82%

26.16%

Active Groups |Pol. Issuing | S.L. | RRGs =>

Groups: 82

Affil+Unaffil: 280

S.L. Insurers: 86

RRGs: 25

Top 5 Groups or Unaffil. [Mkt Share%]

2020 DPW

2020 Adj. Loss Ratio

2020 Commission

Group Name or ALL L.O.B. DPW

Chubb INA Group (G) [11.0%]

$20,277,000

20%

N/A

$137,066,000

CNA Ins Cos (G) [6.5%]

$12,021,000

31%

N/A

$136,569,000

Travelers Group (G) [6.2%]

$11,405,000

32%

N/A

$298,521,000

XL Reinsurance America Group (G) [5.8%]

$10,687,000

12%

N/A

$37,662,000

American International Group (G) [4.7%]

$8,744,000

64%

N/A

$89,635,000

L.O.B. Total or Industry Ave.

$185,058,000

26%

16.0%

$8,012,306,000

Federal Ins Co

$14,552,000

36.9%

14.5%

Chubb INA Group

Travelers Casualty and Surety Co of Amer

$10,614,000

34.9%

15.0%

Travelers Group

Continental Casualty Company

$9,202,000

15.0%

20.0%

CNA Ins Cos

Cincinnati Ins Co

$6,263,000

15.5%

17.2%

The Cincinnati Ins Cos

National Union Fire Ins Co Pittsburgh PA

$5,981,000

52.7%

11.7%

American International Group

Beazley Ins Co, Inc.

$4,733,000

19.2%

16.1%

Beazley USA Ins Grp

XL Specialty Ins Co

$4,401,000

32.5%

13.0%

XL Reinsurance America Group

Indian Harbor Ins Co

$4,043,000

13.5%

14.1%

XL Reinsurance America Group

AXIS Ins Co

$3,264,000

28.3%

15.0%

AXIS US Operations

ACE American Ins Co

$3,053,000

-52.1%

13.9%

Chubb INA Group

Top 10 IA Insurers

Source: © A.M. Best Company — used by permission.

© 2020, Big I Kentucky. All rights reserved.

IA Penetration All Lines of Business

Source: © A.M. Best Company — used by permission.

Here we see the percentage of p-c industry premiums that are going to independent agents. This highlights the room for IA growth in several lines.

This measure is attained by dividing the total direct written premiums for each line of business written by insurers that use independent agents by the total of all premiums for all insurers in that line of business.

© 2020, Big I Kentucky. All rights reserved.

Commissions

Source: © A.M. Best Company — used by permission.

Commission Rates are a calculated based on a page in insurer Yellow Books called “Exhibit of Premiums and Losses (Statutory Page 14).”

Once a year, insurers break-out all LOBs by state and provide 12 columns of data on each based on direct written premiums by state. Along with direct premiums written, direct premiums earned and direct incurred losses also provided is commissions and brokerage expenses.

By dividing commissions and brokerage expenses by direct premiums written for each of the above LOBs, the average commission paid in Kentucky is obtained.

We’ve shown top lines of business in Kentucky. © 2020, Big I Kentucky. All rights reserved.

Kentucky Surplus Lines

Source: © A.M. Best Company — used by permission and National Association of Ins Commissions Surplus Lins Industry Summary

Kentucky’s utilization of surplus lines is lower than the U.S. average at 4.2% of all P-C premiums. The bottom pie chart includes breakouts based exclusively on domestic surplus line insurers. The top chart data estimating all distribution of Surplus Lines (including alien insurers) is 2019 data as it depends on a reporting process at the NAIC that is completed later in the calendar year.

© 2020, Big I Kentucky. All rights reserved.

All States Surplus Lines

Source: © A.M. Best Company — used by permission and National Association of Ins Commissions Surplus Lins Industry Summary

The U.S. has an average of 8.2% of all its P-C premiums written in surplus lines.

The bottom pie chart includes breakouts based exclusively on domestic surplus line insurers. The top chart data estimating all distribution of Surplus Lines (including alien insurers) is 2019 data as it depends on a reporting process at the NAIC that is completed later in the calendar year. © 2020, Big I Kentucky. All rights reserved.

Kentucky Fire & Allied Lines Breakout

2020 - Kentucky Fire and Allied Lines Component L.O.B.s (IA-Only Data) Line of Business

Ind. Agent - DPW

All Distribution-DPW

Agent Distribution

$112,758,000

$161,175,000

70%

Allied Lines

$86,971,000

$143,797,000

60%

Multi-Peril Crop

$144,344,000

$148,135,000

97%

Federal Flood

$10,578,000

$12,978,000

82%

Private Crop

$7,621,000

$7,637,000

100%

Private Flood

$4,375,000

$5,957,000

73%

Earthquake

$31,612,000

$59,745,000

53%

Fire Only

Largest Sub-Line: Top Independent Agent Policy-Issuing Insurers (2020) -Multi-Peril Crop Insurer Name

DPW-This LOB

Commission Paid

NAU Country Insurance Company

$28,845,000

15.9%

Insurer Group (“…” is No Group) QBE North America Insurance Group

Farmers Mutual Hail Insurance Co of Iowa

$9,341,000

15.1%

FMH Insurance Group

Great American Insurance Company

$7,735,000

15.6%

Great American P & C Insurance Group

Producers Agriculture Insurance Company

$5,754,000

18.9%

Tokio Marine US PC Group

Agri General Insurance Company

$3,849,000

1.8%

Chubb INA Group

Source: © A.M. Best Company — used by permission

This breakout is provided to give more detail of a large combination line of business: Fire & Allied Lines. The importance of this L.O.B. to independent agents varies from state to state. The premiums shown in the graph are those for independent agents but the table below shows all premiums for each L.O.B. Generally, Fire & Allied lines is a major L.O.B. where crop insurance is prevalent. Flood insurance writings, also, vary widely between states as does Earthquake. © 2020, Big I Kentucky. All rights reserved.

Kentucky Dividends and Lines of Business

2020 Kentucky Top Ten Lines of Business Paying Policy Dividends Line of Business

Dividends Paid

Average Dividend Rate

Insurers Paying Some Dividends

All Private Passenger Auto

$58,227,000

6.3%

8.2%

Workers’ Compensation

$8,728,000

4.9%

11.3%

Homeowners Multi-Peril

$4,172,000

11.4%

3.3%

Medical Malpractice

$876,000

4.6%

10.5%

All Commercial Auto

$829,000

1.5%

5.5%

Fire & Allied Lines

$642,000

5.0%

1.2%

Commercial Multi-Peril

$419,000

0.8%

3.7%

Other Liability (Occurrence)

$304,000

9.7%

1.9%

Other Liability (Claims-made)

$140,000

10.2%

1.8%

Inland Marine

$127,000

12.8%

0.9%

2020 Kentucky All Private Passenger Auto Top Dividend Paying Insurers Insurer Name

DPW-#1 LOB Shown Above

Insurer Div. Rate

Insurer Group (“…” is No Group)

State Farm Mutual Automobile Ins Co

$661,495,000

4.9%

State Farm Group

United Services Automobile Association

$55,610,000

19.9%

USAA Group

USAA Casualty Insurance Company

$38,934,000

11.1%

USAA Group

Erie Insurance Exchange

$79,383,000

4.9%

Erie Insurance Group

USAA General Indemnity Company

$49,702,000

7.5%

USAA Group

Garrison Property and Casualty Ins Co

$18,976,000

7.3%

USAA Group

Amica Mutual Insurance Company

$4,438,000

12.6%

Amica Mutual Group

American Select Insurance Company

$10,815,000

3.7%

Westfield Group

Westfield National Insurance Company

$5,531,000

4.0%

Westfield Group

Westfield Insurance Company

$1,515,000

4.2%

Westfield Group

Source: © A.M. Best Company — used by permission

© 2020, Big I Kentucky. All rights reserved.

Appendix: NAIC Yellow Book The National Association of Ins Commissioners provides instructions to insurers for completing the annual statement (also known as Yellow Book). The below are taken from an appendix to the instructions for the last year in the data contained in this summary.

When insurers classify premiums, losses, commissions, etc. on a line of business (L.O.B.) basis, the below are the definition that guide them. This most impactful with this summary with the data take from Statutory Page 14, also known as the “States Page.” That pages lists all 34 L.O.B.s and premiums, losses, commissions, etc. on a separate page for every U.S. state.

Line-of-Business (L.O.B. or Combination)

NAIC Line Numbers

Definition

Aggregate Write-ins

Line 34

Explained coverage written in that do not fit elsewhere.

Aircraft (all perils)

Line 22

Coverage for aircraft (hull) and their contents; aircraft owners’ and aircraft manufacturers’ liability to passengers, airports and other third parties.

All Commercial Auto

Lines 19.3+19.4+21.1

Commercial Auto No-Fault (Personal Injury Protection). Other Commercial Auto Passenger Liability (Include-BI, PD, UM and UIM). Commercial Auto Physical Damage.

All Private Passenger

Lines 19.1+19.2+21.1

Private Passenger Auto No-Fault (Personal Injury Protection). Other Private Passenger Auto Liability (Include-BI/PD/UM and UIM). Private Passenger Auto Physical Damage.

Boiler & Machinery

Line 27

Coverage for the failure of boilers, machinery and electrical equipment. Benefits include: (i) property of the insured that has been directly damaged by the accident. (ii) Costs of temporary repairs and expediting expenses. (iii) Liability for damage to the property of others.

Burglary & Theft

Line 26

Coverage for property taken or destroyed by breaking and entering the insured’s premises, burglary or theft, forgery or counterfeiting, fraud, kidnap and ransom, and off-premises exposure.

Commercial Multiple Peril

Line 5

A contract for a commercial enterprise that packages two or more Ins Coverages protecting an enterprise from various property and liability risk exposures. Frequently includes fire, allied lines, various other coverages (e.g., difference in conditions) and liability coverage (such coverages would be included in other annual statement lines, if written individually). Include multi-peril policies (other than farmowners, homeowners and automobile policies) that include coverage for liability other than auto. (Builders’ Risk Policies, Businessowners, Commercial Package Policies, Manufacturers Output Policies, e-Commerce and Difference-in-Conditions).

Credit

Line 28

Coverage purchased by consumers, manufacturers, merchants, educational institutions or other providers of goods and services extending credit, for indemnification of losses or damages resulting from the nonpayment of debts owed to/from them for goods or services provided in the normal course of their business.

Excess Workers’ Compensation

Line 17.3

Indemnification coverage provided to self-insured employers on an excess of loss basis.

Farmowners Multiperil

Line 4

A package policy for farming and ranching risks, similar to a homeowners policy, that has been adopted for farms and ranches and includes both property and liability coverages for personal and business losses. Coverages include farm dwellings and their contents, barns, stables, other farm structures and farm inland marine, such as mobile equipment and livestock. A commercial package policy for farming and ranching risks that includes both property and liability coverage.

Coverage includes barns, stables, other farm structures and farm inland marine, such as mobile equipment and livestock.

Fidelity

Line 23

A bond covering an employer’s loss resulting from an employee’s dishonest act (e.g., loss of cash, securities, valuables, etc.)

Financial Guaranty

Line 10

A surety bond, insurance policy, or when issued by an insurer, an indemnity contract and any guaranty similar to the foregoing types, under which loss is payable upon proof of occurrence of financial loss to an insured claimant, obligee or indemnitee as a result of failure to perform a financial obligation (see Financial Guaranty Insurance Guideline (#1626)).

Fire & Allied Lines

Lines 1 + 2.1 + 2.2 + 2.3 + 12

Fire, Allied Lines, Multi-Peril Crop, Federal Flood, Private Crop, Private Flood and Earthquake (see further descriptions of each under Fire & Allied Lines).

Homeowners Multiperil

Line 3

A package policy combining broad property coverage for the personal property and/or structure with broad personal liability coverage. Coverage applicable to the dwelling, appurtenant structures, unscheduled personal property and additional living expense are typical. Includes mobile homes at a fixed location. (Alternative Workers’ Compensation, Employers’ Liability and Standard Workers’ Compensation).

Inland Marine

Line 9

Coverage for property that may be in transit, held by a bailee, at a fixed location, a movable good that is often at different locations (e.g., off-road construction equipment) or scheduled property (e.g., Homeowners Personal Property Floater), including items such as live animals, property with antique or collector’s value, etc. This line also includes instrumentalities of transportation and communication, such as bridges, tunnels, piers, wharves, docks, pipelines, power and phone lines, and radio and television towers. (Animal Mortality, EDP Policies, Pet Insurance Plans, Communication Equipment, Event Cancellation, Travel Coverage, Vehicle Excess Waiver, Boatowners, Other Commercial Inland Marine, Other Personal Marine and Cash and Cash in Transit Insurance).

© 2020, Big I Kentucky. All rights reserved.

Appendix: NAIC Yellow Book (Cont.)

Medical Professional Liability

Line 11

Insurance coverage protecting a licensed health care provider or health care facility against legal liability resulting from the death or injury of any person due to the insured’s misconduct, negligence, or incompetence in rendering professional services. Medical Professional Liability is also known as Medical Malpractice.

Mortgage Guaranty

Line 6

Insurance that indemnifies a lender from loss if a borrower fails to meet required mortgage payments.

Ocean Marine

Line 8

Coverage for ocean and inland water transportation exposures; goods or cargoes; ships or hulls; earnings; and liability.

Other Liability (Claimsmade)

Line 17.2

Same as 17.1 but on a Claims-Made Basis. These policies cover insured events that are reported (as defined in the policy) within the effective dates of the policy, subject to retroactive dates and extended reporting periods when applicable.

Other Liability (Occurrence)

Line 17.1

Occurrence Based: These policies cover insured events that occur within the effective dates of the policy, regardless of when they are reported to the reporting entity. Ins Coverage protecting the insured against legal liability resulting from negligence, carelessness or a failure to act, causing property damage or personal injury to others. Typically, coverages include construction and alteration liability; contingent liability; contractual liability; elevators and escalators liability; errors and omissions liability, environmental pollution liability; excess stop loss, excess over insured or self-insured amounts and umbrella liability; liquor liability; personal injury liability; premises and operations liability; completed operations liability, nonmedical professional liability, etc. Also includes indemnification coverage provided to self-insured employers on an excess of loss basis (excess workers’ compensation). (Completed Operations, Construction Liability, Contingent Liability, Contractual Liability, Elevators, Error and Omissions, Environmental Pollution, Excess and Umbrella, Personal Liability, Premises and Operations, Excess Workers’ Compensation, Commercial General Liability, Comprehensive Personal Liability, Day Care Centers, Directors and Officers, Employee Benefit Liability, Employers’ Liability, Employment Practices, Fire Legal, Municipal Liability, Nuclear Energy, Veterinarian, Internet Liability and Cyber Liability). Excludes excess workers’ compensation.

Products Liability

Line 18

Insurance coverage protecting the manufacturer, distributor, seller or lessor of a product against legal liability resulting from a defective condition causing personal injury, or damage, to any individual or entity, associated with the use of the product.

Surety

Line 24

A three–party agreement where the insurer agrees to pay a second party (the obligee) or make complete an obligation in response to the default, acts or omissions of a third party (the principal).

Warranty

Line 30

Coverage that protects against manufacturer’s defects past the normal warranty period and for repair after breakdown to return a product to its originally intended use. Warranty insurance generally protects consumers from financial loss caused by the seller’s failure to rectify or compensate for defective or incomplete work and cost of parts and labor necessary to restore a product’s usefulness. Includes, but is not limited to, coverage for all obligations and liabilities incurred by a service contract provider, mechanical breakdown insurance and service contracts written by insurers.

(Mechanical Breakdown and Service Contracts).

Workers Compensation

Line 16

Insurance that covers an employer’s liability for injuries, disability or death to persons in their employment, without regard to fault, as prescribed by state or Federal workers’ compensation laws and other statutes. Includes employer’s liability coverage against the common law liability for injuries to employees (as distinguished from the liability imposed by Workers’ Compensation Laws). Excludes excess workers’ compensation.

Fire & Allied Lines Breakout

NAIC Line Numbers

Fire Only

Line 1

Coverage protecting the insured against the loss to real or personal property from damage caused by the peril of fire or lightning, including business interruption, loss of rents, etc.

Allied Lines

Line 2.1

Extended coverage; glass; tornado, windstorm and hail; sprinkler and water damage; explosion, riot and civil commotion; rain; and damage from aircraft and vehicle.

Multi-Peril Crop

Line 2.2

Insurance protection that is subsidized or reinsured by the Federal Crop Ins Corporation for protection against losses due to damage, decreases in revenues and/or gross margins from crop, livestock and other agricultural-related production from unfavorable weather conditions, drought, wind, frost, fire or lightning, flood, hail, insect infestation, disease or other yieldreducing conditions or perils.

Federal Flood

Line 2.3

Coverage provided by the Federal Insurance Administration (FIA) of the Federal Emergency Management Agency (FEMA) through insurers participating in the National Flood Insurance Program’s (NFIP) Write Your Own (WYO) program. Coverage is subject to the terms and conditions provided in the Financial Assistance/Subsidy Arrangement between the reporting entity and the FIA.

Private Crop

Line 2.4

Private market coverage for crop insurance and agricultural-related protection, such as hail and fire, and is not reinsured by the Federal Crop Ins

Private Flood

Line 2.5

Private market coverage (primary standalone, first dollar policies that cover the flood peril and excess flood) for flood insurance that is not offered through the National Flood Insurance Program. (Sewer/water backup coverage issued as an endorsement homeowners or commercial policy.)

Earthquake

Line 12

Property coverages for losses resulting from a sudden trembling or shaking of the earth, including that caused by volcanic eruption. Excluded are losses resulting from fire, explosion, flood or tidal wave following the covered event.

Definition

Source: ©1984 –2019 National Association of Ins Commissioners: Annual Statement Instructions Property/Casualty-2019 Reporting Year

© 2020, Big I Kentucky. All rights reserved.

Appendix: Insurer “Marketing Type” Insurers submit a “Gallery Report” to A.M. Best and that includes the insurer’s designation of their “Marketing Type.” The possible Marketing Type classifications are shown below. Insurers can also report combinations of the below for a policy-issuing insurer. The five-year graphs, where independent agent distributions are shown, are based on A.M. Best determinations of premiums and distribution as shown in their standard industry reports for all insurers combined.

• • • • • • • • • • • • • • • •

Affinity Group Marketing Bank Broker Career Agent Direct Response Exclusive/Captive Agent General Agent Inactive Independent Agency Internet Managing General Agent Not Available Other Other Agency Other Direct Worksite Marketing

This summary also uses a proprietary classification of policy-issuing insurers into various distribution styles. Those classifications are used to provide insurer lists by L.O.B. for Pure IA or Broker, MGA/Wholesale, IA-Mixed, Exclusive-Captive, Direct, and Other.

Generally, when this summary’s classifications of IA, MGA and IA-mixed are combined they are very similar to what A.M. Best designates as premiums through independent agents in their standard industry reports.

To give a sense of those proprietary classifications, the top ten insurers for each classification in Kentucky is provided below. When reviewing the examples, be aware an individual insurer shown does not always carry the same designation as other insurers in its parent group or fleet. Also, some insurer groups use many more policyissuing insurers than others. When a group has many insurers, the individual insurers may be ranked lower than expected as premiums are spread-out.

Finally, it is good to realize that any categorization of an insurer into a “Marketing Type” is an estimation. Classifications are useful but use of the data should be viewed in light of the fact any classification system is approximate.

© 2020, Big I Kentucky. All rights reserved.

Appendix: Insurer “Marketing Type” Top Ten Insurers Classified as IA or Broker Insurer

Group

DPW

Progressive Casualty Insurance Company

Progressive Insurance Group

$170,047,000

Cincinnati Insurance Company

The Cincinnati Insurance Companies

$142,625,000

Auto-Owners Insurance Company

Auto-Owners Insurance Group

$130,820,000

Kentucky Employers’ Mutual Ins Authority

...

$122,305,000

Erie Insurance Exchange

Erie Insurance Group

$108,344,000

Safeco Insurance Company of Illinois

Liberty Mutual Insurance Companies

$108,024,000

Continental Casualty Company

CNA Insurance Companies

$85,001,000

Safeco Insurance Company of America

Liberty Mutual Insurance Companies

$69,829,000

Standard Fire Insurance Company

Travelers Group

$65,952,000

Zurich American Insurance Company

Zurich Insurance US PC Group

$63,516,000

Top Ten Insurers Classified as MGA/Wholesale Insurer

Group

DPW

Liberty Mutual Personal Insurance Co

Liberty Mutual Insurance Companies

Rural Community Insurance Company

Zurich Insurance US PC Group

$34,369,000

U.S. Specialty Insurance Company

Tokio Marine US PC Group

$11,106,000

Evanston Insurance Company

Markel Corporation Group

$10,701,000

Imperium Insurance Company

Skyward Specialty Insurance Group

$10,322,000

Stratford Insurance Company

American International Group

$9,579,000

Northland Insurance Company

Travelers Group

$6,304,000

Markel Insurance Company

Markel Corporation Group

$6,014,000

Gemini Insurance Company

W. R. Berkley Insurance Group

$5,223,000

Colony Insurance Company

Argo Group

$5,112,000

$130,586,000

Top Ten Insurers Classified as IA-Mixed Insurer

Group

Factory Mutual Insurance Company

FM Global Group

$76,953,000

American Agri-Business Insurance Company

Sompo Holdings US Group

$48,535,000

United Financial Casualty Company

Progressive Insurance Group

$44,706,000

Medical Protective Company

Berkshire Hathaway Insurance Group

$19,787,000

American Modern Property & Casualty Ins

Munich-American Holding Corp Companies

$10,104,000

ProAssurance Casualty Company

ProAssurance Group

$9,789,000

Affiliated FM Insurance Company

FM Global Group

$9,575,000

State Volunteer Mutual Insurance Company

...

$8,223,000

Church Mutual Insurance Company, S.I.

Church Mutual Insurance Group

$7,999,000

CSAA General Insurance Company

CSAA Insurance Group

$7,599,000

© 2020, Big I Kentucky. All rights reserved.

DPW

Appendix: Insurer “Marketing Type” Top Ten Insurers Classified as Exclusive-Captive Insurer

Group

DPW

State Farm Mutual Automobile Ins Co

State Farm Group

$667,184,000

State Farm Fire and Casualty Company

State Farm Group

$384,450,000

Allstate Property and Casualty Ins Co

Allstate Insurance Group

$144,677,000

Shelter Mutual Insurance Company

Shelter Insurance Companies

$87,317,000

LM General Insurance Company

Liberty Mutual Insurance Companies

$64,393,000

Allstate Insurance Company

Allstate Insurance Group

$57,146,000

Metropolitan Property & Casualty Ins Co

Farmers Insurance Group

$46,121,000

Nationwide Mutual Insurance Company

Nationwide Group

$35,725,000

Liberty Insurance Underwriters, Inc.

Liberty Mutual Insurance Companies

$22,874,000

Allstate Indemnity Company

Allstate Insurance Group

$19,387,000

Top Ten Insurers Classified as Direct Insurer

Group

DPW

Kentucky Farm Bureau Mutual Insurance Co

Kentucky Farm Bureau Group

$1,055,405,000

Progressive Direct Insurance Company

Progressive Insurance Group

$200,654,000

GEICO General Insurance Company

Berkshire Hathaway Insurance Group

$101,721,000

United Services Automobile Association

USAA Group

$94,174,000

USAA General Indemnity Company

USAA Group

$69,829,000

GEICO Indemnity Company

Berkshire Hathaway Insurance Group

$57,634,000

USAA Casualty Insurance Company

USAA Group

$54,866,000

Auto Club Property-Casualty Insurance Co

Auto Club Group

$39,715,000

Safe Auto Insurance Company

Safe Auto Insurance Group

$35,723,000

Root Insurance Company

Root Insurance Group

$33,900,000

Top Ten Insurers Classified as Other Insurer

Group

DPW

ClearPath Mutual Insurance Company

...

$43,638,000

Kentuckiana Medical Reciprocal RRG

...

$13,016,000

United Home Insurance Company

...

$9,595,000

Cincinnati Specialty Underwriters Ins Co

The Cincinnati Insurance Companies

$7,981,000

Essent Guaranty, Inc.

Essent Guaranty Group

$7,284,000

PinnaclePoint Insurance Company

Encova Mutual Insurance Group

$6,567,000

Greenwich Insurance Company

XL Reinsurance America Group

$5,493,000

NorthStone Insurance Company

Encova Mutual Insurance Group

$4,718,000

SummitPoint Insurance Company

Encova Mutual Insurance Group

$2,725,000

Attorneys’ Liab Assr Society Ltd., A RRG

...

$2,416,000

© 2020, Big I Kentucky. All rights reserved.

Behind the Report DATA SOURCE The source of the data presented is A.M. Best and its Financial Suite, a system that offers a view of industry data via various industry and custom reports. In this report for you, standard industry reports and customized reports are combined and manipulated to arrive at the various agent-focused presentations of data. A.M. Best obtains this data on individual insurers from the required filings with state regulators. You may be familiar with the term “Yellow Book” for the annual statement required to be made by p-c insurers with their primary regulator. That is where this data comes from. Historically, insurers in different insurance categories had a designated color for their annual reports—such as yellow for p-c or blue for life.

READING THE DATA An aspect of U.S.-based insurer filings is the required delineation of data by “Lines of Business” (LOBs).

These LOBs are standardized for all insurers. LOBs are also often grouped by similar LOBs as they are tracked as part of annual statements. As some LOBs are overly specific (for example, automobile physical damage is separate from automobile liability), it is logical to combine some of these lines. In other cases, the individual lines are often so small they have been combined with other smaller lines in the results. Fire & Allied lines is a good example of that sort of LOB combination. In all cases, the goal of this summary is to present the LOBs data to align with insurance agency operations, marketing strategies or staff assignments. If a combined LOB represents important subsidiary LOBs or another analysis of a more specific LOB is needed it is broken out at the end of this report as an appendix.

For the most significant LOBs, five years of premiums and adjusted loss ratios is provided with all Kentucky premiums written in the state contrasted with premiums written through insurers using independent agents. The designation of an insurer as using independent agents is as determined by A.M. Best. Total premiums for the LOB in the state is dark blue and the independent agent portion of those premiums is shown in light blue. Loss ratios for the LOB are shown in red. It should be noted that the loss ratios shown are adjusted calendar year loss ratios. That means for each LOB the losses used in the ratio of losses to earned premiums are the paid losses that year, plus any estimates of future losses that will be paid from claims that year (also known as “reserves”) plus any changes in “reserves” from prior years. The “adjusted” part is if dividends are paid out under an LOB, the loss ratio is adjusted for that cost.

QUESTIONS? ASK THE EXPERT INDUSTRY ANALYSIS PROVIDED BY:

VIRTUAL LUNCH AND LEARN

Real Insurance Solutions Consulting, LLC Paul A. Buse, Principal realinsurancesc.com 301-842-7472

October 14, 2021 Paul Buse will discuss the data provided in this report to help answer your questions.