According to the AM Best Market Segment Report, “U.S. Mutuals’ Strong Balance Sheets at the Fore Amid Pandemic”, Net Premiums Written (“NPW”) for AM Best-rated mutuals grew by a modest 2.6% in 2019. Although the pace has slowed in recent years, AM Best noted that its rated mutuals have seen NPW growth every year since 2010.
According to AM Best, the 10 largest rated mutuals accounted for approximately 72.0% of NPW in 2019, and the top 25, for nearly 83.0%.
Top 10 Mutual P&C Insurance Carriers (2019 NPW, $ millions)
• State Farm 65,100
• Liberty Mutual 32,268
• USAA Group 22,981
• Nationwide Group 17,993
• Farmers Insurance 14,494
• American Family 11,842
• Auto-Owners Group 8,586
• Erie Group 7,478
• Auto Club Group 4,547
• CSAA Group 4,031
The mutual segment’s policyholders’ surplus increased by 9.6% in 2019 to $349.3 billion, driven by nearly $21.0 billion in unrealized capital gains, as compared with $14.0 billion in unrealized capital losses in 2018. Fewer severe weather-related events occurred in 2018 and 2019, which helped lead to an improvement in the mutual segment’s incurred loss ratio. The median policyholders’ surplus size of these fated companies is $169.0 million, and the median five-year average combined ratio is 97.5%, indicators of the overall health and stability of the organizations’ balance sheets.
This Post is for informational purposes only and does not constitute an offer, invitation or recommendation to buy, sell, subscribe for or issue any securities. While the information provided herein is believed to be accurate and reliable, TAG Financial Institutions Group, LLC and Ashland Securities, LLC make no representations or warranties, expressed or implied, as to the accuracy or completeness of such information. All information contained herein is preliminary, limited and subject to completion, correction or amendment. It should not be construed as investment, legal, or tax advice and may not be reproduced or distributed to any person. Certain Principals of TAG Financial Institutions Group, LLC are registered representatives of Ashland Securities, LLC Member FINRA, SIPC. TAG Financial Institutions Group, LLC and Ashland Securities, LLC are separate and unaffiliated entities. Securities and Investment Banking Services are offered through Ashland Securities, LLC.
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