NATIONAL | Special Report | State Specialists
2016 State Specialist P/C Insurers Revealed
By Barry J. Koestler II
T
he Demotech Company Classification System categorizes insurers into one of 11 categories based on an analysis of data reported by companies to the National Association of Insurance Commissioners (NAIC). The 11 categories that comprise the system are Nationals, Near Nationals, Super Regionals, Regionals, State Specialists, Coverage Specialists, Strategic
Subsidiaries, Risk Retention Groups, Surplus Lines Carriers, Reinsurers, and companies with less than $1 million in direct written premium (DWP). To be categorized as a State Specialist, a carrier must be an individual, active company reporting data to the NAIC using the property/casualty annual statement format at year-end 2015. The company must report at least $1 million in DWP at Dec. 31, 2015, with 90 percent or more written in one state. Further, it cannot be a surplus lines company, risk retention group, or reinsurance company. In total, 746 companies were categorized as State Specialists for 2016. This is 28.6 percent of the 2,612 companies that were classified based on Dec. 31, 2015 data. This group wrote nearly $83.6 billion of DWP, which was 14.3 percent of the industry’s DWP in 2015. Examining the geographic distribution of the 2016 State Specialists reveals that more than half of them specialize
in one of just six states. Texas had the most State Specialists, with 95. Florida was next with 79; New York had 73. New Jersey had 53, California 51, and Pennsylvania 40. These six states accounted for more than $57.6 billion of direct premium written, or nearly 69 percent of the countrywide total. When looking at the line of business mix, State Specialists’ 2015 DWP was 46.8 percent private passenger auto, nearly 23.9 percent homeowners multiple peril, and 10.8 percent workers’ compensation. The accompanying list includes the 279 State Specialists that were not affiliated with a group as of year-end 2015. A full list of State Specialists is available by contacting Barry Koestler at bkoestler@ demotech.com. Koestler II is the chief ratings officer of Demotech Inc., a financial analysis firm specializing in evaluating the financial stability of regional and specialty insurers. Website: www.demotech.com.
2016 State Specialist Property/Casualty Insurers Company Name
State Compensation Insurance Fund Texas Mutual Insurance Co. Pinnacol Assurance Heritage Property & Casualty Insurance Co. SAIF Corp. Medical Liability Mutual Insurance Co. PEMCO Mutual Insurance Co. Wawanesa General Insurance Co. American Coastal Insurance Co. Security First Insurance Co. People's Trust Insurance Co. Windhaven Insurance Co. St. Johns Insurance Co. Inc. American Integrity Insurance Co. of Florida Farm Bureau Mutual Insurance Co. of Arkansas Inc. American Transit Insurance Co. Chesapeake Employers' Insurance Co. Hospitals Insurance Co. Inc. Pioneer State Mutual Insurance Co. Indiana Farmers Mutual Insurance Co. Missouri Employers Mutual Insurance Co. Louisiana Workers' Compensation Corp. Nuclear Electric Insurance Limited Rural Mutual Insurance Co. Queen City Assurance Inc. Louisiana Farm Bureau Mutual Insurance Co. Olympus Insurance Co. Kentucky Employers' Mutual Insurance Authority Country-Wide Insurance Co. Bear River Mutual Insurance Co. Ark Royal Insurance Co. Ranchers & Farmers Mutual Insurance Co. Mutual Insurance Co. of Arizona Weston Insurance Co. Safepoint Insurance Co. Southern Oak Insurance Co. Homeowners of America Insurance Co. New York Schools Insurance Reciprocal Southern Fidelity Property & Casualty Inc. American Steamship Owners Mutual Protection and Indemnity Association Inc. Kingstone Insurance Co. Alinsco Insurance Co. COPIC Insurance Co.
State of Specialty
CA TX CO FL OR NY WA CA FL FL FL FL FL FL AR NY MD NY MI IN MO LA DE WI VT LA FL KY NY UT FL TX AZ FL FL FL TX NY FL NY NY TX CO
24 | INSURANCE JOURNAL | NATIONAL DECEMBER 5, 2016
2015 TOTAL DWP (000s Omitted)
$1,639,880 $1,087,428 $633,021 $492,948 $469,459 $422,046 $402,132 $366,769 $307,988 $302,949 $282,263 $275,976 $274,552 $246,309 $242,383 $227,472 $225,398 $219,687 $207,394 $202,371 $201,488 $187,155 $187,136 $185,206 $170,029 $147,137 $145,655 $141,384 $136,461 $122,543 $120,425 $118,874 $114,155 $108,130 $104,314 $98,057 $97,492 $93,280 $93,159 $92,972 $91,004 $90,972 $87,717
Company Name
GoAuto Insurance Co. Wisconsin Mutual Insurance Co. CEM Insurance Co. Lighthouse Property Insurance Corp. Hawaii Employers' Mutual Insurance Co. Inc. Western General Insurance Co. Colorado Farm Bureau Mutual Insurance Co. Underwriters at Lloyd's, London (IL) Erie and Niagara Insurance Association Prepared Insurance Co. Auto Club South Insurance Co. New York Municipal Insurance Reciprocal Sterling Insurance Co. Ascendant Commercial Insurance Inc. Elements Property Insurance Co. Farmers Union Mutual Insurance Co. Dryden Mutual Insurance Co. Citizens United Reciprocal Exchange LAMMICO Germantown Mutual Insurance Co. RAM Mutual Insurance Co. Mount Beacon Insurance Co. Farmers Mutual Fire Insurance Co. of Salem County MDAdvantage Insurance Co. of New Jersey Access Home Insurance Co. Underwriters at Lloyd's, London (KY) Security Mutual Insurance Co. Wellington Insurance Co. Sawgrass Mutual Insurance Co. Alabama Municipal Insurance Corp. Lawyers' Mutual Insurance Co. Southern Vanguard Insurance Co. Madison Mutual Insurance Co. Crusader Insurance Co. Care West Insurance Co. Discovery Insurance Co. Granada Insurance Co. American Risk Insurance Co. Inc. Bremen Farmers Mutual Insurance Co. Farmers Insurance Co. of Flemington Avatar Property & Casualty Insurance Co. Carolina Mutual Insurance Inc. Center Mutual Insurance Co. Idaho Counties Risk Management Program
State of Specialty
2015 TOTAL DWP (000s Omitted) LA $77,755 WI $73,955 TX $73,277 LA $72,641 HI $72,405 CA $71,201 CO $68,170 IL $67,534 NY $66,960 FL $66,824 FL $64,014 NY $63,824 NY $62,686 FL $62,101 FL $61,131 ND $61,066 NY $59,739 NJ $59,553 LA $50,792 WI $50,243 MN $49,768 FL $48,663 NJ $47,387 NJ $47,332 LA $44,849 KY $42,216 NY $41,925 TX $40,798 FL $40,565 AL $40,036 CA $39,996 TX $39,178 IL $37,398 CA $36,375 CA $36,311 NC $35,621 FL $34,116 TX $32,182 KS $31,132 NJ $30,549 FL $30,085 NC $29,832 ND $29,356 ID $28,791
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