Property/casualty insurers: ranked by 2005 statewide property/casualty premiums written.EXECUTIVE SUMMARY CALIFORNIA'S 25 largest property and casualty insurers account for 82 percent of the premium volume written statewide. The top 25 reported $49.1 billion in written premiums in 2005, down $470 million from the previous year. Premiums earned among the top 25 totaled $48.3 billion, down $270 million compared with 2004. The loss ratio (the percent of premium dollars spent on claims) for California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). property and casualty insurers improved to 51.5 percent, the lowest rate in more than a decade. Workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. insurers wrote $14.6 billion in premiums in 2005, down 9.4 percent from the previous year. The segment saw a 6.5 percent improvement in its loss ratio, bringing it to 57.3 percent. Private passenger auto liability, which accounted for $10.4 billion in premiums written, saw a slight improvement in its loss ratio. Overall, the state's 603 licensed property and casualty insurers earned $58.9 billion in premiums in 2005 and incurred losses of 30.4 billion. The industry's aggregate loss ratio improved to 51.5 percent. --David Nusbaum Nusbaum is a village in the district Bitburg-Prüm in Rhineland-Palatinate, Germany, situated in the southern part of the Eifel. Links
THE PACESETTER STATE COMPENSATION INSURANCE FUND The State Compensation Insurance Fund (SCIF or State Fund) is a workers' compensation insurer that is operated as a public enterprise created by the U.S. state of California. IN almost any other situation, losing 25 percent of your business and market share in one year would be considered disastrous. But people across the board are cheering the loss of business at the quasi-state-run State Compensation Insurance Fund. Even the fund's own top executives are happy. State Fund's premium volume written plunged in 2005 to $6.1 billion, while its market share among all insurance carriers dropped below 10 percent. The reason for the celebration: The workers' compensation insurance crisis earlier this decade had swollen the rolls of this insurance carrier of last resort so much that it was widely feared it would collapse. Even A.M. Best Corp was considering downgrading downgrading A reduction in the quality rating of a security issue, generally a bond. A downgrading may occur for various reasons including a period of losses, or increased debt service required by restructuring a firm's capital to include more debt and less State Fund because of this risk, so State Fund withdrew from A.M. Best's rating Best's rating A rating A.M. Best Co. assigns to insurance companies based on the company's ability to meet its obligations to its policyholders. system before any new rating could be issued. Two years ago, when State Fund had an estimated 55 percent of the workers' comp comp See comparison. market, state officials pressured State Fund to stop taking new customers. These latest figures show a return to more normal historic levels as competition has come back to the workers' comp marketplace. Despite reducing its rates a cumulative total of 44 percent since January January: see month. 2004, State Fund still faces some criticism for not reducing premiums enough. The insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. reduced its rates 10 percent this month, a smaller amount than the 16 percent industry reduction called for by state Insurance Commissioner John Garamendi John Raymond Garamendi (born January 24, 1945) is a U.S. politician and a member of the Democratic Party. He became the 46th Lieutenant Governor of California on January 8 2007. . Some small business owners have also complained they have not seen significant premium cuts. In response, fund officials say they have awarded additional rate discounts for small businesses with good safety records. Meanwhile, the fund is still being led by acting president James James, person in the Bible James, in the Gospel of St. Luke, kinsman of St. Jude. The original does not specify the relationship. James, rivers, United States James. Tudor Tudor, royal family that ruled England from 1485 to 1603. Its founder was Owen Tudor, of a Welsh family of great antiquity, who was a squire at the court of Henry V and who married that king's widow, Catherine of Valois. , who took over when previous president Dianne Notable People Named Dianne
OKI Open Knowledge Initiative (Massachusetts Institute of Technology) OKI Ohio-Kentucky-Indiana (also KOI) resigned in Feb. 2005 amid testy tes·ty adj. tes·ti·er, tes·ti·est Irritated, impatient, or exasperated; peevish: a testy cab driver; a testy refusal to help. relations with both Garamendi and state legislators. --Howard Fine
Rank Company (Ranking in 2005) Calif. Premium
* name Volume Written
* address (millions)
* Web site * 2005
* 2004
* percent change
1 State Compensation Insurance Fund of $6,141.3
California (1) $8,216.4
900 Corporate Center Drive (25.3)
Monterey Park 91754
scif.com
2 American International Group Inc. (2) 5,323.4
777 S. Figueroa St., 18th Floor 5,252.9
Los Angeles 90017 1.3
aig.com
3 State Farm Group (3) 4,859.5
200 Corporate Pointe, Suite 200 4,828.1
Culver City 90230 0.7
statefarm.com
4 Farmers Insurance Group (4) 4,064.1
4680 Wilshire Blvd. 3,921.2
Los Angeles 90010 3.6
farmers.com
5 Allstate Insurance Group (5) 2,927.2
10901 Gold Center Drive, Suite 400 2,606.1
Rancho Cordova 95670 12.3
allstate.com
6 St. Paul Travelers (6) 2,148.8
333 City Blvd. West, Suite 1100 2,274.1
Orange 92868 (5.5)
stpaultravelers.com
7 Mercury Insurance Group (7) 2,138.8
4484 Wilshire Blvd. 2,016.2
Los Angeles 90010 6.1
mercuryinsurance.com
8 Interinsurance Exchange of the Auto Club (9) 2,081.5
2601 S. Figueroa St. 1,943.2
Los Angeles 90007 7.1
aaa-calif.com
9 California State Automobile Association (8) 2,075.5
100 Van Ness Ave. 2,002.4
San Francisco 94102 3.7
csaa.com
10 Zurich North America (10) 1,646.6
801 N. Brand Blvd., Penthouse 1,768.8
Glendale 91203 (6.9)
zurichna.com
11 Hartford Insurance Group (11) 1,574
1 Pointe Drive 1,435.7
Brea 92822 9.6
thehartford.com
12 Liberty Mutual Insurance Co. (12) 1,451.9
6130 Stoneridge Mall Road, Suite 400 1,310.9
Pleasonton 94588 10.8
libertymutual.com
13 Allied Insurance (13) 1,377.5
1601 Exposition Blvd. 1,294.9
Sacramento 95815 6.4
nationwide.com
14 Berkshire Hathaway Insurance Group (21) 1,298.5
3452 E. Foothill Blvd., Suite 600 857
Pasadena 91107 51.5
bh-hc.com
15 Chubb Group of Insurance Cos. (14) 1,205.5
801 S. Figueroa St., Suite 2400 1,210.6
Los Angeles 90017 (0.4)
chubb.com
16 Allianz of America Inc. (15) 1,195
2350 Empire Ave. 1,144
Burbank 91504 4.5
allianz.com
17 Progressive Insurance Group (19) 1,011.9
101 S. First St., Suite 200 924.6
Burbank 91502 9.4
progressive.com
18 USAA Group (18) 988.6
2241 Harvard St. 936.2
Sacramento 95815 5.6
usaa.com
19 Safeco Insurance Cos. (17) 986.9
120 Vantis, Suite 130 996.4
Aliso Viejo 92656 (1.0)
safeco.com
20 CNA Insurance Corps. (16) 941.3
5820 Canoga Ave., Suite 200 1,081.8
Woodland Hills 91367 (13.0)
cna.com
21 ACE INA Group (20) 896.2
725 S. Figueroa St., Suite 2050 873.1
Los Angeles 90017 2.6
ace-ina.com
22 Zenith National Insurance Corp. (23) 766.7
21255 Callfa St. 739.5
Woodland Hills 91367 3.7
znic.com
23 Great American P&C Insurance Group (22) 744.4
750 The City Drive South 765.5
Orange 92868 (2.8)
greatamericaninsurance.com
24 Preferred Employers Insurance Co. (24) 701
P.O. Box 85478 655.2
San Diego 92186 7
preferredworkcomp.com
25 California Earthquake Authority 503.4
801 K St., Suite 1000 465.5
Sacramento 95814 8.1
earthquakeauthority.com
Rank Calif. Premium Rating Grades (1) California
Volume Earned * 2005 Market Share
(millions) * 2004 * 2005
* 2005 * 2004
* 2004
* percent change
1 $6,137.9 NR-4 9.5%
$8,185.1 NR-4 12.6%
(25.0)
2 5,242.0 N/A 8.2%
5,108.5 N/A 8%
2.6
3 4,791.8 A++ 7.5%
4,750.3 A++ 7.4%
0.9
4 4,005.4 A 6.3%
3,871.2 A 6%
3.5
5 2,818.7 A+ 4.5%
2,531.2 A+ 4%
11.4
6 2,182.4 N/A 3.3%
2,301.4 N/A 3.5%
(5.2)
7 2,086.9 N/A 3.3%
1,988.7 N/A 3.1%
4.9
8 2,028.9 A+ 3.2%
1,898.8 A+ 3%
6.9
9 2,038.1 A+ 3.2%
1,957.2 A 3.1%
4.1
10 1,692.2 N/A 2.5%
1,716.7 N/A 2.7%
(1.4)
11 1,470.6 N/A 2.4%
1,399.4 N/A 2.2%
5.1
12 1,378.4 A 2.2%
1,257.9 A 2%
9.6
13 1,326.6 A+ 2.1%
1,238.7 A+ 2%
7.1
14 1,246.4 N/A 2%
848 N/A 1.3%
47
15 1,221.6 A++ 1.9%
1,182.1 A++ 1.9%
3.3
16 1,186 N/A 1.8%
1,133 N/A 1.8%
4.7
17 969.7 N/A 1.6%
886.5 N/A 1.4%
9.4
18 969.4 A++ 1.5%
905 A++ 1.4%
7.1
19 983.8 A 1.5%
969.7 A 1.5%
1.5
20 952.8 A 1.4%
1,031.3 A 1.7%
(7.6)
21 869 N/A 1.4%
831.4 N/A 1.3%
4.5
22 786.4 A- 1.2%
713.2 A- 1.1%
10.3
23 735.2 NR-5 1.1%
746.1 NR-5 1.2%
(1.5)
24 666.4 N/A 1.1%
631.6 N/A 1%
5.5
25 473.1 A- 0.8%
448.4 A- 0.7%
5.5
Rank Writer Information Headquarters
* directlagency * location
* major lines
(partial list)
1 both San Francisco
workers' compensation
2 both New York
all lines
3 agency Bloomington, Ill.
auto, home, renter, life, health and
disability, long-term care, business, boat
4 both Los Angeles
auto, home owners, life, business,
financial services
5 both Northbrook, Ill.
auto, home, life, business, boat, motor
home, flood
6 agency St. Paul, Minn.
auto, home, liability, commercial property,
workers' compensation, excess
casualty/umbrella, executive liability
7 agency Los Angeles
auto, home, personal umbrella,
commercial
8 agency Los Angeles
auto, home, condo, renter, life, boat,
collector vehicle
9 direct San Francisco
auto, home, renter, life, personal umbrella,
motorcycle, rental property
10 agency Zurich,
auto, workers' compensation, liability, Switzerland
accident & health, environmental,
business owners policy, health care
11 both Hartford, Conn.
business, auto, home, life, flood
12 both Boston
general liability, commercial auto,
property, workers' compensation
13 agency Columbus, Ohio
auto, home, condo, renter, business, farm
14 agency Omaha, Neb.
auto, workers' compensation, other
liability
15 agency Warren, N.J.
Chubb Commercial Insurance, Chubb
Specialty Insurance, Chubb Personal
Insurance
16 agency Munich,
property, casualty, commercial, Germany
international
17 both Mayfield Village,
auto, motorcycle, boat, RV, travel trailer, Ohio
Segway, commercial auto
18 direct San Antonio,
auto, home, renter, life for U.S. armed Texas
forces and their families
19 agency Seattle
auto, home, small- and mid-sized
businesses
20 agency Chicago
commercial, workers' compensation,
commercial auto, long-term care
21 agency Bermuda
workers' compensation, auto, general and
excess liability, accident and health,
motorcycle, RV, collector auto
22 agency Woodland Hills
workers' compensation
23 agency Cincinnati
auto, commercial, workers' -
compensation, life, health, professional
liability
24 agency San Diego
workers' compensation
25 direct Sacramento
earthquake
Rank Top Local Executive
* name
* title
* phone
1 Mike White
district manager
(877) 405-4545
2 Vincent Masucci
senior vice president, West
(213) 689-3500
3 Greg Jones
senior vice president, California
(818) 673-2800
4 Paul N. Hopkins
ceo
(323) 932-3200
5 Robert H. Barge III
field vice president
(800) 473-4889
6 Barbara Courtney
regional executive
(800) 221-3974
7 George Joseph
chairman, ceo
(323) 937-1060
8 Thomas McKernan
ceo
(213) 741-3111
9 James Pouliot
ceo, president
(800) 922-8228
10 Lindy Hardman
regional executive, Southwest
(818) 500-4700
11 John Hagerott
regional vice president
(800) 826-7365
12 Chris Mitchell
division sales manager
(800) 343-1534
13 Bob O'Hollearn
regional vice president
(916) 924-4000
14 Don Grant
v.p., claims
(626) 356-1700
15 Gary Petrosino
managing director
(213) 612-0880
16 Brent Sorenson
sr. v.p. claims, L.A. regional
exec. and sr.v.p. claims, L.A.
regional exec.
(818) 260-7500
17 Stann Rose
California head of claims
(818) 729-6200
18 Rick Fowler
v.p., general manager
(916) 921-9060
19 Joe Rupp
Southwest regional sales &
distribution leader
(949) 860-6000
20 Steve Stonehouse
president, West region
(818) 226-5000
21 Laurel Ulrich
senior vice president, West
region
(213) 833-3113
22 Stanley R. Zax
chairman, ceo, president
(818) 713-1000
23 Clark W. Gilbert
vice president
(714) 740-2400
24 Linda Smith
ceo, president
(888) 472-9001
25 Elaine D. Bush
ceo
(877) 797-4300
N/A--Not Applicable
Note: Numerical and rating information supplied by A.M. Best Co. Other
information supplied by representatives of the companies. A.M. Best
revises data for corrections and changes in group structure.
To the best of our knowledge, this information is accurate as of press
time. While every effort is made to ensure the accuracy and
thoroughness of the list, omissions and typographical errors sometimes
occur. Please send corrections or additions on company letterhead to
the Research Department, Los Angeles Business Journal, 5700 Wilshire
Blvd., Suite 170, Los Angeles 90036. [c]2006 Los Angeles Business
Journal. This list may not be reprinted in whole or in part without
prior written permission from the editor. Reprints are available from
Wright's Reprints, (877) 652-5295.
(1) Grades are assigned to companies based on performance and their
ability to meet their obligations to policyholders over a long period
of time. Researched by David Nusbaum
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