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  • 8/3/2019 0130_EconSnapshot

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    LOCAL ECONOMIC SNAPSHOT | TEXAS INSURANCE

    A premium marketBy GARY JACOBSON

    Staff Writer

    [email protected]

    KYLE ALCOTTStaff Artist

    [email protected]

    Texans spend more a lot more to buy insurance each year than they do to run thestate. We spent $102.9 billion on insurance of all kinds in 2010 (the latest figuresavailable), according to the Texas Department of Insurance, which prepares an annualreport for the governor and Legislature. By comparison, the state budget currently runsat the rate of about $86 billion a year.

    Texas policy premiums, claim payments

    The auto insurance market in Texas is

    more competitive than homeowners.

    Health insurance is in a state of flux.

    Homeowners is pretty much

    dominated by a handful

    of companies who

    have the lions share

    of the business. Its

    not as competitive

    as we would like it

    to be.

    The economic sustainability in this

    state continues to amaze my

    colleagues around the country. The

    growth in premiums

    is largely the result

    of growth in the

    economy.

    With all the face time the cute gecko

    gets in his TV ads, even dancing the

    two-step, youd think Geico would

    have a larger share of the Texas auto

    insurance market. The

    company is in

    the top 10, but

    not close to

    the leaders.

    The bottom line

    Deeia Beck, public counsel,

    Office of Public Insurance Counsel

    David VanDelinder, executive

    director, Independent InsuranceAgents of Texas

    Gary Jacobson, staff writer,

    The Dallas Morning News

    Insurance companies make money, in part, on the

    difference between the premiums they collect and the

    claims they pay out. Claims can vary widely from year to

    year. One big hurricane or hailstorm can make a difference.

    Texas market share leadersState Farm is No. 1 in homeowners and auto insurance while Blue Cross Blue Shield of Texas leads in health, and Metropolitan

    in life insurance. The top three home insurers (State Farm, Allstate, Farmers) control nearly 55 percent of the market.

    Texas insurance market 2010Texans spend about the same to insure their stuff (property

    and casualty) as they do their health (accident and health

    plus HMO).

    0

    20

    40

    60

    80

    100

    120

    10090807060504030201009998979695

    (In billions)

    SOURCES: Texas Department of Insurance annual reports and analysis by The Dallas Morning News

    2010: $102.9 billion

    2010: $70.8 billion

    Premiums Claim payments

    State Farm Group

    Allstate Group

    Zurich Group (Farmers)

    United Services Group

    Liberty Mutual Group

    Travelers Group

    Nationwide Group

    Texas Farm Bureau Group

    Chubb & Son Group

    Hartford Group

    $1.7 billion

    $732.9 million

    $726.5 million

    $449.5 million

    $305 million

    $282.6 million

    $209.7 million

    $152.5 million

    $115 million

    $104.3 million

    HOMEOWNERS

    State Farm Group

    Zurich Group (Farmers)

    Allstate Group

    Progressive Group

    United Services Group

    Berkshire-Hathaway (Geico)

    Nationwide Group

    Liberty Mutual Group

    Home State Group

    Titus Group

    $2.7 billion

    $1.7 billion

    $1.5 billion

    $1.1 billion

    $931.2 million

    $871.3 million

    $461.2 million

    $370.3 million

    $363.7 million

    $329.3 million

    PERSONAL AUTO

    Insurance group 2010 premiums Market share Insurance group 2010 premiums Market share

    HCSC Group (BCBSTx)

    UnitedHealth Group

    Aetna Group

    Humana Group

    Amerigroup

    Centene Group

    Newquest Group

    Universal American Group

    Cigna Health Group

    Scott and White Group

    $7.7 billion

    $6.5 billion

    $2.6 billion

    $2.5 billion

    $1.4 billion

    $1.3 billion

    $1.0 billion

    $907.6 million

    $891.4 million

    $550.6 million

    $719.4 million

    $537.2 million

    $424.8 million

    $380.8 million

    $374.7 million

    $307.2 million

    $292.2 million

    $273.3 million

    $254.3 million

    $243.7 million

    HEALTH (Includes HMO)

    Metropolitan Group

    New York Life Group

    Northwestern Mutual Group

    Prudential Group

    Lincoln National Group

    State Farm Group

    American International

    Aegon Holding Group

    John Hancock Group

    Mass Mutual Group

    7.8%

    5.8%

    4.6%

    4.1%

    4.1%

    3.3%

    3.2%

    3%

    2.8%

    2.6%

    LIFE

    Insurance group 2010 premiums Market share Insurance group 2010 premiums Market share

    29.2%

    12.6%

    12.5%

    7.7%

    5.3%

    4.9%

    3.6%

    2.6%

    2%

    1.8%

    20.9%

    17.9%

    7.8%

    7%

    3.9%

    3.7%

    2.8%

    2.5%

    2.5%

    1.5%

    20.3%

    12.4%

    11.4%

    8.4%

    7%

    6.5%

    3.5%

    2.8%

    2.7%

    2.5%

    Property

    and casualty

    $37.8 billion

    Accident

    and health

    $23.4 billion

    Annuity

    $18.5 billion

    HMO

    $13 billion

    Life

    $9.2 billion

    Title

    $1.1 billion

    Other: $4 million