Rewriting the rules: insurers and brokers are forced to adopt new policies about commissions, disclosures and even the size of their organizations. Now they have to make the new model work."We have said that the broker in the city of Baltimore who obtained the insurance was the agent of the defendant. But he performed other services in addition to obtaining the consent of the insurance company to its part of the contract. He was intrusted with the possession of the policies for the purpose of delivering them to the defendant, provided it would pay the cash premiums; and he was also intrusted with the collection and transmission of the money. For these services he was paid by the insurance company, and therein he was its agent. He was paid by being allowed to retain a commission out of the premiums received from the defendant."--Maryland Supreme Court, Stevens vs. Rasin Fertilizer fertilizer, organic or inorganic material containing one or more of the nutrients—mainly nitrogen, phosphorus, and potassium, and other essential elements required for plant growth. Co., 1904. As the court's quote makes clear, concerns about commissions, compensation, and the potential conflicts of interest they can engender en·gen·der v. en·gen·dered, en·gen·der·ing, en·gen·ders v.tr. 1. To bring into existence; give rise to: "Every cloud engenders not a storm" for brokers and agents alike are certainly not new to the commercial insurance business. The law books and the insurance codes of virtually every state are packed with an assortment of decisions, opinions and "desk drawer" rules--many of them contradictory--on when it is or is not proper for an intermediary Intermediary See: Financial intermediary intermediary See financial intermediary. to take money from a client, an insurer or both. But most seem to agree that never before have these issues been brought to the forefront as they have in the past 12 months. Given the headline-making probes of industry practices in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , California and elsewhere, complete with scenes of insurance and brokerage executives pleading Asking a court to grant relief. The formal presentation of claims and defenses by parties to a lawsuit. The specific papers by which the allegations of parties to a lawsuit are presented in proper form; specifically the complaint of a plaintiff and the answer of a defendant plus any guilty to criminal charges, business models that stood for decades have been shattered--some would say for the better. "Any time you challenge a process--whether it's the way Coca-Cola makes Coke, or the way a sports team plays--at the end of that challenge, it's either going to be better, or you're already convinced that you're pretty good," observed Joe Plumeri, chairman and chief executive officer of Willis Group Holdings Ltd. "In both cases, it's good for you as a company, it's good for you as an industry, but most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , it's better for the user." The third-largest global broker, Willis took the lead as the first of the four largest global brokers--Marsh & McLennan Cos., Aon Corp., Willis and Arthur J. Gallagher & Co.--to permanently give up all so-called "contingent" income. The centerpiece of New York state Attorney General The New York State Attorney General is the chief legal officer of the State of New York. The office has been in existence in some form since 1626, under the Dutch colonial government of New York. Eliot Spitzer's investigation of the industry, contingent commissions Contingent commissions is a term used in the American insurance industry for any kind of broker's commission which is contingent upon some event occurring (instead of a commission paid on the sale itself). In the UK this form of payment is known as Overriders. include fees paid by an insurance company to a broker based on a share of the profits it earns on the clients the broker places with that carrier and--as was the case in the Marsh deals put under the microscope by Spitzer--the placement fees paid by an insurer when a broker places a specific volume of insurance with that insurance company or agrees that it will place insurance with only a limited number of insurance companies. The decision to give up contingents had an immediate impact on Willis, Marsh and Aon, which posted significant drops in their fourth-quarter earnings, and is expected to impact Gallagher, which continued to accept contingents until Jan. 1. But to hear Plumeri tell it, those lost income streams represent a challenge to intermediaries to more clearly define the services they provide and the value they represent. The key, as attested at·test v. at·test·ed, at·test·ing, at·tests v.tr. 1. To affirm to be correct, true, or genuine: The date of the painting was attested by the appraiser. 2. to by 76% of attendees at A.M. Best Co.'s recent Review & Preview 2005 Conference, is "disclosure." "Disclosure is a big word that a lot of people couldn't even spell before all this," Plumeri said. "But it goes both ways. You not only disclose what you make--which is what transparency is--but you also disclose what you do for it. A lot of people think that you're going to charge less because of transparency. The way I look at it, maybe we should charge more. In some cases, I don't think we charge enough." Opening the Books Many states long have required brokers, counselors, producers or any other intermediaries who receive compensation from both an insurer and an insured on the same transaction to disclose their compensation. In California, where the Office of Administrative Law administrative law, law governing the powers and processes of administrative agencies. The term is sometimes used also of law (i.e., rules, regulations) developed by agencies in the course of their operation. has been mulling mulling (mul´ing), n the final step of mixing dental amalgam; a kneading of the triturated mass to complete the amalgamation. a host of new disclosure requirements drafted by 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. , an April 1980 department memorandum even specified that "a person acting in a dual capacity, i.e., for an insured and an insurer, must fully disclose to both principals the nature of his contract with the other, including the remuneration REMUNERATION. Reward; recompense; salary. Dig. 17, 1, 7. to be received from each." But according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. former New York Insurance Superintendent Gregory Serio, previous attempts by regulators to police these disclosures met with resistance--not front insurers or even brokers, but from large account commercial risk managers, who would implore im·plore v. im·plored, im·plor·ing, im·plores v.tr. 1. To appeal to in supplication; beseech: implored the tribunal to have mercy. 2. the government not to get involved. "Even where they had trouble getting those disclosures about their broker's compensation, they placed the business anyway," Serio said at a recent industry forum. "It's almost comical com·i·cal adj. 1. Provoking mirth or amusement; funny. 2. Of or relating to comedy. com to see them complain now that we failed to protect them when they basically had always told us there were no problems and we should stay out of it ... They're not angry. They're embarrassed. And I think many of them are justifiably jus·ti·fi·a·ble adj. Having sufficient grounds for justification; possible to justify: justifiable resentment. jus worried about their job security because they essentially abdicated responsibility to their own risk programs." If that attitude prevailed among buyers before the controversies struck, it has swung dramatically in the days since Spitzer filed his suit against Marsh & McLennan, according to David K. Bradford, executive vice president of Advisen Ltd. In a survey of 700 risk managers, Bradford found that 75% wanted more standardization standardization In industry, the development and application of standards that make it possible to manufacture a large volume of interchangeable parts. Standardization may focus on engineering standards, such as properties of materials, fits and tolerances, and drafting and transparency in their relationships with brokers, and almost 68% said their companies needed greater access to pricing and other details of transactions. A majority of the risk managers surveyed, 54%, said they were concerned that contingent commissions represent a conflict of interest, and 57% of the respondents believed their brokerage firms didn't fully disclose all sources of income related to insurance transactions. In an analysis of the issue that appeared in a recent investors' briefing, insurance equity analysts Dowling & Partners Securities LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control said that, from an insurance buyer's perspective, transparency could be improved either by brokers providing up-front comparison of underwriters' quotes with all relevant information, including compensation, or by underwriters doing it directly in a form that accompanied the policy. The latter option already is being explored by American International Group
American International Group, Inc. (AIG) (NYSE: AIG; TYO: 8685 ) is a major American insurance corporation based in New York City. Inc. and Ace Ltd., two of the first large commercial insurers to announce they would unwind Unwind 1. The closure of an investment position. 2. The reconciliation of an error previously unseen by a brokerage house. Notes: 1. Sometimes referred to as closing out a position. their market service and placement service agreements with brokers. "The real world reality is independent 'agents' have not and will not want to disclose compensation ... at all, ever," the Dowling analysts wrote. "Looking ahead, we expect independent agents will fight meaningful changes in disclosure rules even as they state all the right buzz words buzz word Noun Informal a word, originally from a particular jargon, which becomes a popular vogue word buzz word n → palabra que está de moda and talk of a need for 'consensus' among the various parties." According to Bradford, who also conducted a separate poll of brokers and agents, 77% of the intermediaries he polled anticipate that high transparency would be required in the industry and nearly all expected regulators to begin requiring greater disclosure. But they fear that, as the public, investors and regulators continue to turn up the heat on the practice of contingents, more insurers may follow the lead of companies such as AIG AIG addressee indicator group (US DoD) AIG American International Group, Inc AiG Answers in Genesis (religious group in defense of Scripture) AIG Artificial Intelligence Group AIG Australian Industry Group , Ace, UnumProvident Corp., Axis Capital Holdings Ltd. and HCC Insurance Holdings HCC Insurance Holdings, Inc. Inc., and cease paying them. "What our polling showed is that the smaller brokers, and particularly the independent agents, are legitimately frightened fright·en v. fright·ened, fright·en·ing, fright·ens v.tr. 1. To fill with fear; alarm. 2. that this source of income would be taken away from them," Bradford said. "They feel they perform their job with integrity, that contingent commissions never dictated where they placed business, and they resent re·sent tr.v. re·sent·ed, re·sent·ing, re·sents To feel indignantly aggrieved at. [French ressentir, to be angry, from Old French resentir, the stain Stain (microbiology) Any colored, organic compound, usually called dye, used to stain tissues, cells, cell components, or cell contents. The dye may be natural or synthetic. The object stained is called the substrate. on the industry caused by a select number of individuals at the largest brokerages. And the feeling is that, without these commissions, they won't be able to effectively compete." Plumeri, for one, will not cry crocodile tears crocodile tears crocodile said to weep after devouring prey. [Western Folklore: Jobes, 383; Mercatante, 9–10] See : Hypocrisy for his smaller competitors. Noting that his firm is just as interested in competing in the middle and small market as it is in large-account, global business, he likens the more forgiving attitude many in the public hold toward the smaller brokers, compared with the scrutiny he and other large brokers face, to "good cholesterol 'good' cholesterol A popular term for HDL-cholesterol, see there. Cf 'Bad' cholesterol. and bad cholesterol bad cholesterol LDL-cholesterol Cardiovascular disease Cholesterol transported in the circulation by low-density lipoprotein, the elevation of which is directly related to the risk of CAD and cholesterol-related morbidity See LDL-cholesterol. Cf Good cholesterol. ." "If the so-called 'megabrokers' gave up contingents, then it must be because they intertwined contingents and bid-rigging and all that stuff, but if you're XYZ XYZ interj. Informal Used to indicate to someone that the zipper of his or her pants is open. [ex(amine) y(our) z(ipper).] Regional, then you must have good cholesterol, because they assume you must not have done that stuff," Plumeri said. "I didn't bid rig. I didn't tie. I didn't do any of that stuff. Now, if somebody finds an e-mail and suggests that my contingent is a bad contingent because of an e-mail, then that's only because our offices are all over the world, and a small broker yells it across the desk. We didn't give up contingents because we were under a gun or a microscope--we did it because there was a perception of a conflict. If we did it, so can they." Unbundling A regulatory requirement that enables a competing service provider to purchase parts of the incumbent local exchange carrier's network in order to provide service to its customers. See ILEC. the Brokers While issues of agency, compensation and disclosure have dominated the first round of changes in the brokerage business, some suggest the most dramatic change is still to come--a complete reversal of a long-standing trend by many brokers to seek subsidiaries that offer services at every stage of an insurance transaction. "The issue essentially is that these were very strategic insurance business decisions made by people who understood the distribution system to the ultimate," said California-based insurance and reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. consultant Andrew Barile. "They figured out that they could make a retail insurance brokerage commission, a wholesale brokerage commission, and a reinsurance brokerage commission, and then top that off with a fee to manage their captive. The concept that evolved in the industry was, 'well, if the client doesn't mind, I'm going to do that.' So we watched the big firms buy all these people up, so that the biggest retail broker has the biggest wholesale broker has the biggest reinsurance broker." Concern about some of the potential outcomes of these arrangements--particularly the practice of "leveraging," also known as "tying," under which brokers will only place business with an insurance company if the insurer agrees to use the broker to secure reinsurance for the risk--actually predates the Spitzer investigation. In March 2003, the National Consumers League urged authorities in California, New York, Florida and Connecticut to investigate leveraging and tying practices, in a sense setting the stage for the probes that would develop more than a year later. In response to these concerns, Barile predicts, many brokers will begin unbundling their disparate acquisitions of the 1990s to focus more exclusively on their core retail businesses. "Rather than standing and fighting it, it's easier to say, if somebody else wants to buy it and make a profit at it, we might as well unload To remove a program from memory or take a tape or disk out of its drive. it," Barile said. "I can foresee the investment community getting the calls. I've been getting calls myself, just on the basis of people leaving and going to private equity firms and trying to start businesses because they need the capital." Among the first signs that this strategy has begun to take hold was a string of divestitures by Aon, which sold off its U.K. claims-services businesses, its U.K. reinsurance brokerage run-off unit and Cambridge Integrated Services In computer networking, IntServ or integrated services is an architecture that specifies the elements to guarantee quality of service (QoS) on networks. IntServ can for example be used to allow video and sound to reach the receiver without interruption. Group Inc.'s claims-administration business to Singapore-based Scandent scan·dent adj. Botany Climbing: a scandent vine. [Latin scand Group. Aon followed that up with the sale of the overwhelming majority of the company's interest in Endurance Specialty Holdings Ltd., the Bermuda-based insurer and reinsurer re·in·sure tr.v. re·in·sured, re·in·sur·ing, re·in·sures To insure again, especially by transferring all or part of the risk in a contract to a new contract with another insurance company. Aon helped found with a $227 million investment in the aftermath of the Sept. 11, 2001 terrorist attacks. More recently, Willis announced the sale of its wholesale unit, Stewart Smith Stewart Smith may be the name of:
Looking at a company such as Aon, whose chairman and chief executive officer, Patrick J. Ryan, has announced his plans to step down from the company he founded, Barile sees a metaphor for how the industry as a whole is seeking to manage the paradigm shift A dramatic change in methodology or practice. It often refers to a major change in thinking and planning, which ultimately changes the way projects are implemented. For example, accessing applications and data from the Web instead of from local servers is a paradigm shift. See paradigm. in which it now finds itself. "This isn't a question of financials anymore," Barile said. "The issue now is whether they left something for the next people who take over that means something, or whether they've created such a fiasco that the whole industry is telling me I'm a horrible person. These people all have more money than they could ever need. It's not about that. It's about their legacy." Key Points * The largest brokers have given up upfront market service and placement service agreements and back-end profit sharing profit sharing, arrangement by which employees receive, in addition to their wages, a share of the net profits of a business. The purpose is to give them an incentive to increase their output through enhanced morale, less wasteful use of materials, better care of . * Smaller brokers and independent agents still cling to Verb 1. cling to - hold firmly, usually with one's hands; "She clutched my arm when she got scared" hold close, hold tight, clutch hold, take hold - have or hold in one's hands or grip; "Hold this bowl for a moment, please"; "A crazy idea took hold of back-end contingent commissions, which they assert are fair and justified. * Many risk managers are now using multiple brokers or open bidding on accounts. Doing Business A New Way The following brokers have made changes to their business models since New York state Attorney General. Eliot Spitzer's investigation commenced: Marsh & McLennan * Unwound un·wound v. Past tense and past participle of unwind. unwound unwind market service agreements with carriers and ceased accepting contingent commissions, beginning in November 2004, but used $232 million of third-quarter 2004 contingent income for settlement fund. * Created $850 million restitution In the context of Criminal Law, state programs under which an offender is required, as a condition of his or her sentence, to repay money or donate services to the victim or society; with respect to maritime law, the restoration of articles lost by jettison, done when the fund from which policyholders nationwide can recover in proportion to the amount of contingent income received on placement of their business. * Broke up "global broking Bro´king a. 1. Of or pertaining to a broker or brokers, or to brokerage. Redeem from broking pawn the blemished crown. - Shak. " unit for placement of excess casualty, and plans to break up branches into regional zones directed by a series of "hub" offices. * Plans spin-off The situation that arises when a parent corporation organizes a subsidiary corporation, to which it transfers a portion of its assets in exchange for all of the subsidiary's capital stock, which is subsequently transferred to the parent corporation's shareholders. of MMC See MultiMediaCard and Microsoft Management Console. Capital equity firm, the manager of Trident Funds, which has raised more than $3 billion to invest in "global insurance and financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. industries, including investments in the property and casualty, life, health, reinsurance, insurance distribution, insurance services, insurance-and financial services--related technology, human resources The fancy word for "people." The human resources department within an organization, years ago known as the "personnel department," manages the administrative aspects of the employees. and employee benefits industries." Aon Corp. * Ceased accepting contingent commissions in late 2004; unwinding market service agreements and placement service agreements. * Sold nearly all of its shares in Bermuda reinsurer Endurance Specialty Holdings Ltd. * Agreed to pay $190 million to policyholders to resolve lawsuits filed by attorneys general in New York, Connecticut and Illinois. * Sold U.K. claims-services businesses, U.K. reinsurance brokerage runoff Runoff The procedure of printing the end-of-day prices for every stock on an exchange onto ticker tape. Notes: If the "tape is late" then it can take a long time to print off all the closing prices. unit and Cambridge Integrated Services Group Inc.'s claims-administration business. * Plans to sell Swett & Crawford, the largest U.S.-based wholesale insurance broker. Willis Group Holdings Ltd. * Abolished profit-based contingency fees contingency fee Law & medicine An attorney fee based on a percentage of the money recovered in a lawsuit in October in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , and by year's end in other countries. * Offered complete disclosure of all compensation earned from underwriters for product development services, carrier benchmarking and underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. analysis, market research, industry and geographic intelligence, modeling, policy issuance and premium accounting, claims management and processing, line slip and cover holder management, binding authorities, underwriting and administration services, portfolio management, market security information and credit finance, and said it would cease charging on a volume basis. * Introduced "Client Bill of Rights" laying out its responsibilities as a client advocate and established internal controls, including regular compliance reviews, audits and review by the audit committee of the company's board. * Sold its wholesale brokerage unit, the Stewart Smith Group, to independent wholesaler American Wholesale Insurance Group. Arthur J. Gallagher & Co. * Announced it would cease accepting contingent commissions as of Jan. 1, 2005. * Conducted internal probe, which in January concluded the company had not engaged in any wrongdoing wrong·do·er n. One who does wrong, especially morally or ethically. wrong  do .
Marsh Plans to Shed Employees, Accounts Under New Model The fourth quarter marked an inauspicious in·aus·pi·cious adj. Not favorable; not auspicious. in  aus·pi earnings debut for Marsh
& McLennan Cos.' new chief executive officer, as the impact of
more than $700 million in settlement and regulatory charges, along with
the loss of $220 million in revenues from market service agreements,
combined to push the world's largest insurance broker into the loss
column.
But with a major restructuring of its commission program already under way and plans to enact cost savings that include a reduction of 2,500 employees worldwide--in addition to the 3,000 positions Marsh announced it was eliminating earlier in the quarter--President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Michael G. Cherkasky predicted the company's Marsh Inc. brokerage business would recover a "meaningful portion" of its lost revenues by 2006. "Marsh was simply too complicated, too short on process and technology and, in part because of inefficiencies, it had too many unprofitable clients," Cherkasky said during the company's earnings conference call in March. "The prevalence of unprofitable accounts is in part a product of Marsh's recent reliance on contingent commissions. Before the abandonment of MSA (Metropolitan Service Area) An urban area with at least 50,000 people plus surrounding counties. There are 306 MSAs and 428 RSAs (rural service areas) in the U.S. MSAs and RSAs are used to allocate cellular licenses. revenue, a break-even or losing account could still be a profitable account because of the back-end revenue." Under the company's new business model, Cherkasky said the company will manage its businesses' profits and losses geographically, with groups of offices called "zones" responsible for sales and client support, each reporting to a "hub" office that will be able to provide clients with a full range of services. Across each zone, practices will operate with segmentation based on size, complexity and industry. The company also will look to shed thousands of unprofitable accounts, mostly small-commercial accounts, thus clearing the way for the planned employee downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing , Cherkasky said. "We believe as brokers become more transparent that clients will be able to see the Marsh advantage, but we need to be paid fairly today," Cherkasky said. "Accordingly, we have gone to the individual insurance companies with rate cards that set out what we will charge for placement of a piece of business. These rates will be higher than before, but will still be at the lower end of the market." The company also unveiled a plan to spin off its MMC Capital unit to a team of employees. "We will continue to be the largest investor of capital going forward, but will no longer have direct ownership in MMC Capital or involvement in the investment decisions or the management of the company going forward," Cherkasky said. "We believe this transaction will preserve our investment and that of the partners and limit the appearance of conflict that has concerned some clients, while at the same time facilitate the creation of new capacity in the insurance market, as needed as needed prn. See prn order. ." Cherkasky--who served as Kroll's CEO until late October, when he was tapped to replace the ousted Jeffrey W. Greenberg--said he anticipates that, once fully implemented, the company's restructuring should lead to an additional $375 million in cost savings, in addition to the annual savings of $400 million the company anticipates was produced by its prior round of lay-offs and consolidation.
Contingent Commissions, U.S. P/C Insurers--2003
Rank based on contingent commissions paid in 2003.
($ Thousands)
Underwriting Expenses
Commission & Brokerage
Rank Company Name AMB # Contingent Direct
1 Allstate Ins Group 00008 $412,927
2 Travelers Prop Cas Group 18358 269,837
3 Chubb Group of Ins Cos 00012 228,970
4 Nationwide Group 05987 193,005
5 CNA Ins Cos 18313 172,271
6 Zurich/Farmers Group 18549 149,510
7 Hartford Ins Group 00048 144,542
8 American Intern Group 18540 125,868
9 Liberty Mutual Ins Cos 00060 121,805
10 St Paul Cos 00080 117,269
11 Assurant Solutions 18499 115,705
12 Safeco Ins Cos 00078 94,845
13 Allianz of America Inc 18429 69,302
14 WR Berkley Group 04655 59,092
15 Allmerica Finl P&C Cos 04861 58,281
16 Cincinnati Ins Cos 04294 57,154
17 Auto-Owners Ins Group 04354 57,115
18 Winterthur Swiss Group 05658 37,193
19 Ohio Casualty Group 00726 35,055
20 Great American P&C Ins Group 04835 33,399
21 Progressive Ins Group 00780 31,936
22 Westfield Group 00730 30,160
23 Markel Corp Group 18468 29,656
24 Berkshire Hathaway Ins Group 00811 28,987
25 EMC Ins Cos 00346 27,380
26 Selective Ins Group 03926 26,720
27 Ace INA Group 18498 25,990
28 Country Ins & Finl Svcs 00302 25,573
29 American Family Ins Group 00124 25,424
30 HDI US Group 18492 25,038
31 California State Auto Group 18460 24,552
32 Southern Farm Bureau Group 02962 22,539
33 Atlantic Mutual Cos 00178 20,978
34 United Fire & Casualty Group 03875 20,882
35 State Auto Ins Cos 00856 20,186
36 Commerce Group Inc 02966 20,084
37 Shelter Ins Cos 00598 19,605
38 Mercury General Group 04524 19,304
39 MetLife Auto & Home Group 18552 19,214
40 Acuity Group 00461 19,188
41 Republic Cos Group 00802 19,070
42 Harleysville Ins 03916 18,787
43 West Bend Mutual Group 18447 16,343
44 Fairfax Finl (USA) Group 03116 16,316
45 Main Street America Group 18355 15,030
46 Kingsway America Group 18442 14,913
47 Utica Natl Ins Group 04202 13,908
48 Kentucky Farm Bureau Group 03281 13,554
49 Baldwin & Lyons Group 05686 13,430
50 Texas Mutual Ins Co 11453 13,136
51 Unitrin Inc 05948 12,781
52 Grange Mutual Casualty Group 03917 12,514
53 American Modern Ins Group 04086 11,420
54 Central Ins Cos 00246 11,022
55 Secura Ins Cos 18381 10,644
56 Capital Ins Group 03858 10,403
57 Old Republic Genl Group 00734 10,387
58 Sentry Ins Group 00086 10,339
59 Andover Cos 00166 10,142
60 Penn Natl Ins 00766 9,415
Total U.S. P/C Industry $3,697,810
Policyholder Direct Premiums
Rank Surplus Written
1 $16,146,058 $23,138,811
2 8,537,695 14,835,256
3 6,293,906 9,607,725
4 8,551,943 13,726,149
5 6,205,519 11,839,995
6 7,518,320 26,552,458
7 9,116,617 10,455,721
8 17,318,336 32,350,195
9 7,218,780 15,209,079
10 5,067,609 7,597,491
11 632,696 2,422,220
12 2,802,519 5,137,463
13 3,388,652 4,924,301
14 1,906,013 3,052,932
15 974,235 2,421,924
16 2,779,816 2,950,993
17 3,242,791 4,016,198
18 746,509 1,540,415
19 868,202 1,570,414
20 1,860,487 3,386,793
21 4,549,862 12,191,955
22 764,110 1,384,010
23 1,085,816 1,781,822
24 40,765,788 10,206,837
25 586,968 1,113,122
26 665,942 1,357,612
27 2,106,181 5,818,116
28 1,160,309 1,508,025
29 2,686,297 5,585,120
30 581,651 2,645,667
31 2,113,132 2,049,466
32 1,780,352 2,001,551
33 323,555 1,018,735
34 303,111 469,003
35 1,176,857 1,298,395
36 1,075,074 1,658,969
37 774,822 990,034
38 1,169,696 2,263,716
39 1,996,333 3,011,688
40 328,540 616,365
41 133,701 480,947
42 713,624 1,247,153
43 296,360 636,781
44 2,977,017 1,831,558
45 418,520 699,736
46 258,885 1,175,012
47 443,905 713,466
48 603,860 636,209
49 303,385 216,155
50 857,123 674,353
51 1,017,781 1,599,822
52 488,553 1,016,137
53 262,397 614,471
54 291,655 476,916
55 128,019 278,839
56 135,344 232,123
57 1,690,045 2,299,259
58 2,187,789 1,806,615
59 563,940 365,540
60 288,336 546,447
$353,394,296 $457,160,808
Source: Best's Statement File--P/C U.S.
|
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion