Growth in the homeowners insurance sector increased to 6.66 percent from 4.97 percent last year, according to an analysis by SNL Financial Group.
Direct written premiums in aggregate were $22.20 billion for the second quarter, compared to $20.82 billion for the same quarter last year, SNL said, and of the top 30 insurers, 26 increased direct premiums year over year, and 11 posted growth rates of 10 percent or more.
The insurer demonstrating the fastest growth was Homeowners Choice Property & Casualty Insurance Co. Inc., which increased Q2 direct written premiums to $131 million from $85 million in the second quarter of 2012.
“The HCI Group Inc. unit said in the management's discussion and analysis section of its 2012 annual statement that it historically gained business through the depopulation of Citizens Property Insurance Corp.,” SNL said. “It recently got regulatory approval to assume more than 50,000 policies from Florida's state-run insurer."
According to SNL, the sector’s aggregate direct incurred loss ratio declined to 64 percent from 74.84 percent last year. With few exceptions, insurers reported lower incurred loss ratios in the prior-year period.
SNL recognized Erie Insurance Group, Cincinnati Financial Corp., State Auto Insurance Cos. and Allianz Group as having significantly lowered their direct incurred loss ratios.
Insurer | Q2 ’13 DWP in millions | Year/Year Premium Change | Q2 ’13 Direct Incurred Loss Ratio |
State Farm Mutual Auto Ins. Co. | $4,681.1 | 4.85% | 70.62% |
Allstate Corp. | $1,987.1 | 3.75% | 55.63% |
Farmers Ins. Grp. | $1,397.4 | 3.54% | 82.55% |
Liberty Mutual | $1,394.5 | 14.17% | 67.41% |
USAA Ins. Grp. | $1,196.6 | 13.08% | 75.20% |
Travelers Co.’s | $912.1 | -1.79% | 51.44% |
Nationwide Mutual Grp. | $831.2 | 4.04% | 66.37% |
Chubb Corp. | $539.1 | 5.36% | 40.08% |
American Family | $463.7 | 5.49% | 101.15% |
Erie Ins. Grp. | $338.1 | 14.48% | 51.69% |
Auto-Owners Ins. Grp. | $313.1 | 3.74% | 74.20% |
Erie’s homeowners line of business reduced its direct incurred loss ratio to 51.69 percent from 103.60 percent last year. Erie was profitable in the second quarter and moved up in SNL’s rankings, having demonstrated 14.48 percent year-over-year growth in direct premiums written.
“The new business year-over-year average premium per policy for homeowners increased 8.6 percent at June 30, compared to 7.7 percent at June 30, 2012, Erie Indemnity disclosed in its quarterly Form 10-Q,” SNL said. “The year-over-year average premium per policy on homeowners renewal business increased 8.9 percent at June 30, compared to 8.0 percent at June 30, 2012.”
MetLife Inc.'s direct incurred loss ratio declined 392 basis points year-over-year, SNL said, and posted 12.99 percent growth in direct written premiums for the quarter.
SNL Financial rankings are based on NAIC filings, the company said.
For the top 10 auto and homeowners insurers by direct written premiums for Q1 2013,
