The art of underwriting: highly focused niche insurers are outperforming many of their larger, more diverse peers in four lines of commercial property/casualty insurance, according to a study by A.M. Best Co.When it comes to profitable 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. , commercial property/casualty insurers that outperformed their peers tend to have a one-track one-track adj. Obsessively limited to a single idea or purpose: a one-track mind. one-track Adjective Informal mind. A.M. Best Co. studied four lines of commercial insurance--workers' compensation, fidelity and surety An individual who undertakes an obligation to pay a sum of money or to perform some duty or promise for another in the event that person fails to act. surety n. , medical malpractice Improper, unskilled, or negligent treatment of a patient by a physician, dentist, nurse, pharmacist, or other health care professional. and commercial auto--and found those companies that rose to the top in underwriting profitability often did so with a sharp, laser-like focus on a particular area of expertise. Insurance companies can make money two ways: first, through the actual business of insurance, and secondly, through investments. It's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have common for insurers to break even or even lose money on their main business, insurance, but still be profitable based on their revenue from investments. One measure of business profitability is combined ratio, which reflects losses and expenses as a percentage of premiums. A combined ratio less than 100 marks a profit. Over 100 equals an underwriting loss. The study examined companies who derive more than 50% of their premiums from one of the selected lines of insurance, and ranked them by their 10-year combined ratio. The smaller, niche superstar companies that scored the best use various techniques. Some emphasize underwriting and take special care before adding a new client to their roster. Others focus on preventing the loss before it happens, paying close attention to educating clients. Still others put their muscle into handling claims to keep costs down. It's likely that most people have never heard of many of the companies that trumped the competition. For instance, Yel Co. Insurance, a Miami-based privately held company privately held company A firm whose shares are held within a relatively small circle of owners and are not traded publicly. , provides commercial-auto liability insurance to two fleets of taxis taxis (tăk`sĭs), movement of animals either toward or away from a stimulus, such as light (phototaxis), heat (thermotaxis), chemicals (chemotaxis), gravity (geotaxis), and touch (thigmotaxis). in South Florida Florida, state, United States Florida (flôr`ĭdə, flŏr`–), state in the extreme SE United States. A long, low peninsula between the Atlantic Ocean (E) and the Gulf of Mexico (W), Florida is bordered by Georgia and . Yel Co. paid out only 37 cents in claims and expenses for every $1 of premium it took in over a decade. The industry average for commercial auto was 107.25, meaning the average commercial auto writer paid out $1.07 in expenses and claims for every $1 of premium taken in over a decade. Global Surety & Insurance Co., an Omaha, Neb., surety and fidelity company, could have one of the best combined ratios of any company, anywhere: 6.36.That's not a typo typo - typographical error . For every $1 of premium received, Global Surety only paid out 6.36 cents in claims, well below the industry average 10-year combined ratio of 98.23. True, Global Surety is a unique company in that it writes only contract surety business for its parent, construction contractor Kiewit Corp. The results of both Yel Co. and Global Surety aren't aren't Contraction of are not. See Usage Note at ain't. aren't are not aren't be typical, and neither is their business focus. Yet both demonstrate how knowing their business as an insider can help profitability. Both companies declined to be interviewed for this article, saying they're they're Contraction of they are. they're be not looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. new business and don't don't 1. Contraction of do not. 2. Nonstandard Contraction of does not. n. A statement of what should not be done: a list of the dos and don'ts. want to share any of their secrets of success. Other companies were proud to talk about their experience and how they overcame markets plagued by skyrocketing rates and shrinking availability. Several were forged forge 1 n. 1. A furnace or hearth where metals are heated or wrought; a smithy. 2. A workshop where pig iron is transformed into wrought iron. v. in the fires of hard insurance markets, and ironically i·ron·ic also i·ron·i·cal adj. 1. Characterized by or constituting irony. 2. Given to the use of irony. See Synonyms at sarcastic. 3. , have pulled ahead of their peers in terms of profitability, proving that what was once viewed as "too risky" by the general market can indeed be profitable--if insurers mind their business. Focus, Focus, Focus Companies can have an advantage by keeping a narrow focus, said Bruce Bruce, Scottish royal family descended from an 11th-century Norman duke, Robert de Brus. He aided William I in his conquest of England (1066) and was given lands in England. D. Hale of Conning Research and Consulting Inc. "Sometimes you can have outstanding results because you have missed catastrophic weather. For instance, every personal and commercial 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. in Hawaii Hawaii, island, United States Hawaii, island (1990 pop. 120,217), 4,037 sq mi (10,456 sq km), largest and southernmost island of the state of Hawaii and coextensive with Hawaii co.; known as the Big Island. has made money hand over fist since Hurricane Iniki Hurricane Iniki (pronounced [ɪniki]) (Hawaiian for strong and piercing wind[1]) was the most powerful hurricane to strike the U.S. in 1992. A company focused on Hawaii would be great just because they haven't have·n't Contraction of have not. haven't have not haven't have been hit," Hale said. Companies also can excel if they take the time to really understand the risks. MedAmerica Mutual Risk Retention Group, based in Walnut Creek Walnut Creek, residential city (1990 pop. 60,569), Contra Costa co., W Calif., in the San Francisco Bay area; inc. 1914. It is the trade and shipping center of an extensive agricultural area where walnuts are among the major product. , Calif., has a narrow focus that other insurers have shied shied 1 v. Past tense and past participle of shy1. shied Verb the past of shy1 or shy2 away from: It provides medical malpractice insurance for emergency room doctors and nurses in 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). . It also whipped the competition, with a 10-year combined ratio of 89.9, the third lowest of any dedicated medical malpractice writer in the country. It's one of only four medical malpractice writers to turn an underwriting profit Underwriting profit is a term used in the insurance industry. It consists of the earned premium remaining after losses have been paid and administrative expenses have been deducted. It does not include any investment income earned on held premiums. in the past 10 years. "The combined ratio is truly the number an insurance company needs to focus on to measure their financial expertise," said Gloria Glo·ri·a n. 1. a. A Latin doxology beginning with the words Gloria Patri. b. A Latin doxology that is the second item of the Ordinary of the Roman Catholic Mass and begins with the words H. Everett Everett. 1 City (1990 pop. 35,701), Middlesex co., E Mass., an industrial suburb of Boston, on the Mystic River; settled c.1643, set off from Malden 1870, inc. as a city 1892. , MedAmerica chief executive officer. Like other profitable underwriters, MedAmerica is selective and doesn't does·n't Contraction of does not. take all applicants. "Before we will even issue a rate indication, not to mention a full quote, we ask what the company's motivation is in changing carriers. If they say price, it's a good indication that we aren't going to write it," she said. MedAmerica emphasizes loss control and training, both for its staff and its insureds. The company sent its own staff to spend a day in an emergency room. "There's nothing more comforting to physicians than if you have an insurance person, or any service provider, really understand your business. That's what we have focused our energy on. We don't sit in an ivory tower ivory tower n. A place or attitude of retreat, especially preoccupation with lofty, remote, or intellectual considerations rather than practical everyday life. and give advice that isn't is·n't Contraction of is not. isn't is not isn't be appropriate to their business," Everett said. For instance, after seeing a number of claims related to doctors having difficulty opening airways airways Anatomy The 'pipes'–trachea, bronchi, bronchioles–through which air passes to and from the alveoli. See Small airways. , the company developed a special kit with the tools needed for the task, and provided doctors with additional training. MedAmerica could have expanded outside of its niche area of emergency care in California, but chose not to, Everett said. "We felt it wasn't was·n't Contraction of was not. wasn't was not wasn't be our core competency A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
Contraction of were not. weren't were not tempted. Working at a large company, one of the things I learned was that it's easy to get seduced by your own top line growth. Especially in med mal, we've we've Contraction of we have. we've have seen a lot of top line growth that came back to bite us on the bottom line," she said. See the Forest for the Trees Forest for the Trees was the brainchild of Carl Stephenson, an eclectic producer known for his work with Beck. Difficult to classify, Forest for the Trees is probably best described as experimental psychedelic trip-hop. Maine Maine, ship Maine, U.S. battleship destroyed (Feb. 15, 1898) in Havana harbor by an explosion that killed 260 men. The incident helped precipitate the Spanish-American War (Apr., 1898). Commanded by Capt. Charles Sigsbee, the ship had been sent (Jan. Employers' Mutual Insurance Co. of Portland, Maine Portland is the largest city in the U.S. state of Maine, with a 2004 population of 63,882. Portland is Maine's cultural, social and economic capital. Tourists are drawn to Portland's historic Old Port district along Portland Harbor, which is at the mouth of the Fore River and part , is the 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. insurer of last resort insurer of last resort An insurance plan that accepts 'uninsurable' persons who have expensive and/or chronic diseases, and cannot obtain coverage at market rates. See Blues. in the state. It was founded by the Maine government in 1993 when the state's workers' comp comp See comparison. market was considered the worst in the nation. With forests covering 89% of the state, logging and forestry are major industries, and claims from those dangerous occupations were major contributors to the state's high loss ratio. John Leonard John Leonard may refer to:
MEMIC Mobile ElectroMagnetic Incompatibility immediately focused on preventing losses from happening. "The core operation is based around our commitment to workplace safety. We have nearly 40 certified safety professionals The Certified Safety Professional (CSP) is a certification offered in the United States by the Board of Certified Safety Professionals (BCSP). The CSP has been accredited in the United States by the National Commission for Certifying Agencies and the Council of Engineering and Scientific working in our territory on a daily basis," Leonard Leon·ard , Ray Charles Known as "Sugar Ray." Born 1956. American boxer who won the 1976 Olympic light welterweight title. He held five world titles as both a welterweight and middleweight between 1979 and 1987. Noun 1. said. "We look more like a loss-control company than an insurance company." Those safety professionals have all worked in the industries they now try to improve, he said. "For example, our construction industry safety professionals come out of that industry. They really understand and know the operations. They are not your traditional safety counselors with white shirts and clipboards," Leonard said. Unlike other companies, MEMIC must take all comers all who come, or offer, to take part in a matter, especially in a contest or controversy. - Bp. Stillingfleet. See also: Comer . It doesn't have to keep all employers, however, and any who refuse to undergo MEMIC's safety training can be dropped. Even as the insurer of last resort, 65% of MEMIC's business stems from the voluntary market, and it writes about 70% of the commercial market in Maine, and expanded into New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). in 2000. MEMIC can tout Tout To promote a security in order to attract buyers. tout To foster interest in a particular company or security. For example, a broker might tout a security to a client in the hope that the client will purchase the security. its 89.7 combined ratio in the past 10 years as proof that its emphasis on loss prevention is paying off. Don't Drop the Sandwich Like MEMIC, Blood Centers Exchange, a risk retention group based in Overland Park Overland Park, city (1990 pop. 111,790), Johnson co., NE Kans., a residential suburb of Kansas City; inc. 1960. There is printing and publishing, and the manufacture of apparel, aircraft parts, cement, prepared foods, salt, chemicals, marine accessories, and signs. , Kan Kan, river, China: see Gan. ., was formed in a hard market. It was the mid- mid- pref. Middle: midbrain. 1980s, and the blood-borne disease A blood-borne disease is one that can be spread by contamination by blood. The most common examples are HIV, hepatitis B, hepatitis C and viral haemorrhagic fevers. AIDS was making headlines nationwide. Insurers, fearful of the lawsuits related to the collection of blood, had second thoughts about providing liability coverage for blood collection centers. "A lot of insurance companies said 'we're going to lose lots of money in claims, affecting financial results,'" said Alan A`lan´ n. 1. A wolfhound. Cable, chairman of the Blood Centers RRG RRG Risk Retention Group (insurance industry) RRG Red River Gorge (outdoor recreation area in Kentucky) RRG Rodrigues Island, Mauritius - Rodrigues (Airport Code) . "Companies raised their rates, and stopped writing blood centers altogether. They thought the risk was too great." The blood center where Cable worked saw its liability insurance rate jump about 350%. "Some blood centers even went without insurance. The bottom line is that those of us in the industry, we disagreed with the insurance companies. We don't think there's that much liability out there, knowing the business as we know it. In the end, we felt we should form our own insurance company," Cable said. The RRG began doing business in 1993 by insuring 21 blood centers. It's since expanded to 43 blood centers, and has produced strong results. The RRG, with a 10-year combined ratio of 87.1, had the second best combined ratio of any dedicated medical malpractice writer in the country and has outperformed the medical malpractice industry, which had a combined ratio of 125.48 during that time. Remarkably, the Blood Centers Exchange has done that without a single employee. It relies on consultants to handle the insurance business, but is governed gov·ern v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. by its board of directors who are chosen from its member blood centers. Other blood center employees sit on committees to review everything from claims to underwriting, plus loss control and risk management. "Everyone involved in the program is either from the blood industry or has been doing business with the blood industry for years," said Brad Ellis Brad Ellis is a composer, musical director, orchestrator and jazz pianist know for his long time association with FORBIDDEN BROADWAY, the recordings produced by Bruce Kimmel with his Brad Ellis Little Big Band, and arranging, orchestrating and conducting members of the LA Philharmonic , who acts as manager of the RRG but works for the Haake Cos., a consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a . "The company has never needed to have its own employees. It may grow to the point where it decides to, but the committees within the company are very, very active." For instance, an underwriting committee reviews all new applications from new blood centers who want to join the group. "If the insured or potential insured has had regulatory shortcomings A shortcoming is a character flaw. Shortcomings may also be:
Contraction of they have. they've have been dealt with. It's a highly regulated industry. We know what is expected of one another. If an applicant is having a problem with the FDA FDA abbr. Food and Drug Administration FDA, n.pr See Food and Drug Administration. FDA, n.pr the abbreviation for the Food and Drug Administration. (U.S. Food and Drug Administration), we can see what the FDA has written them up for, and whether or not their response was adequate. We can encourage change, and if they choose to not adequately address the FDA's concerns, we may choose to no longer insure Insure can mean:
Ellis ELLIS - EuLisp LInda System. An object-oriented Linda system written for EuLisp. "Using Object-Oriented Mechanisms to Describe Linda", P. Broadbery <pab@maths.bath.ac.uk> et al, in Linda-Like Systems and Their Implementation, G. Wilson ed, U Edinburgh TR 91-13, 1991. said: "If you really understand the industry, look at the claims experience of the applicant, and you'll have a good understanding as to whether the claims history will repeat itself." The secret to making an underwriting profit is to know the industry, Cable said. "We are not trying to insure a risk that we do not fully understand," he said. Also, Cable said it's important that the other insureds are equally committed to controlling claims. "It's like when you are driving down the road, you will see people driving that you wouldn't want to share their liability for auto coverage. You see people whose lifestyle is a bit risky. We look at each other, the other insureds or applicants, and decide if we feel that they are going to do what they ought to do," Cable said. "We don't want them dropping their sandwich in the swimming pool we're sitting in." Don't Underestimate Relationships Smaller, more focused companies also are able to develop strong relationships, which can be an added benefit, Hale of Conning said. "Insurance is a people business. Those with strong relationships can really stand out, whether the relationship is with a customer group or regulators," he said. Service Insurance Group of Austin, Texas, is one such company. "We keep very tight control, and relationships are very important to us," said Sandy Kohl kohl n. A cosmetic preparation, such as powdered antimony sulfide, used especially in the Middle East to darken the rims of the eyelids. [Arabic ku , senior vice president of underwriting for Service Insurance. Throughout most of its history, the company has concentrated on writing workers' comp insurance only for Texas-based auto dealerships. It's branched out recently to cover mom-and-pop type operations in Texas, but has several sister companies all related to meeting the insurance needs--including credit life, accident and health, and service warranties--for auto dealerships in Texas. The company has bested every other dedicated workers' comp writer in the country by having the lowest 10-year combined ratio: 84.7. So while the rest of the industry, on average, was paying out $1.10 for every premium dollar taken in, Service Insurance was paying only 84.7 cents on the dollar. "Prior to taking the risk, as well as after we have the risk, we have a loss control department that visits the insured or prospective insureds. They know what types of exposures there are. In dealerships, for instance, they are looking at things on the floor, like oil, that can cause floors to be slippery. They look for safety measures safety measures, n.pl actions (e.g., use of glasses, face masks) taken to protect patients and office personnel from such known hazards as particles and aerosols from high-speed rotary instruments, mercury vapor, radiation exposure, anesthetic and : Are mechanics using goggles goggles, n the protective eyewear worn by dental personnel and patients during dental procedures. goggles see periocular leukotrichia. ? Back supports?" Kohl said. Service Insurance has its own agents that sell directly to dealerships and also uses independent agents. It frequently meets with both types of agents to discuss business. Also, the loss-control department is frequently talking to Noun 1. talking to - a lengthy rebuke; "a good lecture was my father's idea of discipline"; "the teacher gave him a talking to" lecture, speech rebuke, reprehension, reprimand, reproof, reproval - an act or expression of criticism and censure; "he had to the underwriters. "The success is all of the departments working together and closely, and establishing a relationship with insureds and agents" Kohl said. Being small helps, she said. "I think the larger you become, the less relationship building you can do," she said. Strong Leaders Show the Way In addition to strong relationships, smaller companies can excel due to excellent management, Hale said. "The power or the value of a strong leader makes a highly concentrated impact in a smaller company, as compared to being watered down through various layers at a larger company," he said. That could be the case with Charter Insurance Group, which writes business only in Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. , a state with a tough regulatory
environment. With a combined ratio of 86.5, the Boston-based company is
the second most profitable workers' compensation underwriter underwriter n. a company or person which/who underwrites an insurance policy, issue of corporate securities, business, or project. (See: underwrite) UNDERWRITER, insurances. One who signs a policy of insurance, by which he becomes an insurer. , behind Service Insurance, for the past 10 years. Linda J. Sallop, president of the company, and Mitchel I. Weisman, executive vice president, personally review just about every application and claim that come in the door. Other companies may put the spotlight Spotlight can refer to at least three types of lighting:
A basement is one or more floors of a building that are either completely or partially below the ground floor. Slab-on-grade buildings do not have basements. , where there are no windows, nothing but files. Our claims department has the most beautiful space here," Sallop said. Sallop and Weisman credit their employees with their success. "I think each and every individual here feels vested vested adj. referring to having an absolute right or title, when previously the holder of the right or title only had an expectation. Examples: after 20 years of employment Larry Loyal's pension rights are now vested. (See: vest, vested remainder) in what they do. They feel the results are in some way directly related to their performance," Weisman said. "The state rates are below what they were in the 1980s," Sallop said. "The rates technically are very inadequate. When the rates go down, our competition lays off people. We invest more in them. We pay our people more than the average insurance company, in addition to other rewards." For instance, the company caters hot lunches for its employees daily, and offers other perks perk 1 v. perked, perk·ing, perks v.intr. 1. To stick up or jut out: dogs' ears that perk. 2. To carry oneself in a lively and jaunty manner. , such as company dinners and a chance to work from home. Maintaining relationships with clients also is important. Adjusters are assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. specific employers, and then handle every claim that comes from that employer. "Our adjusters do not sit at a desk waiting for claims to come in. They meet our accounts face-to-face, and establish the rapport The former name of device management software from Wyse Technology, San Jose, CA (www.wyse.com) that is designed to centrally control up to 100,000+ devices, including Wyse thin clients (see Winterm), Palm, PocketPC and other mobile devices. we need to keep the employer doing business with us," Weisman said. Key Points * Some of the most profitable commercial underwriters are experts in the niche industries they serve. * Other profitable underwriters credit their success to their loss-control efforts and their committment to safety programs. * Others tout their efforts on claims and emphasize how important their claim managers and adjusters are. Learn More Charter Insurance Group A.M. Best Company # 18396 Distribution: Independent Agents Community Blood Centers Exchange A.M, Best Company # 11569 Distribution: Direct Maine Employers' Mutual Insurance Co. A.M. Best Company # 11387 Distribution: Independent Agents MedAmerica Mutual Risk Retention Group A.M. Best Company # 11431 Distribution: Direct and Brokers Service Insurance Group A.M. Best Company # 18385 Distribution: Direct and Independent Agents For ratings and other financial strength information about these companies, visit www.ambest.com. Willard Reed and Henry Kane compiled data for this article from the A.M. Best Co. database. CUTTING LOSSES: John Leonard, president of Maine Employers' Mutual Insurance Co., attributes the company's low combined ratio to its focus on loss control. The company requires employers in the logging industry to send their employees to a 40-hour training course, which includes hands-on training on how to safely cut down and move trees. The company hasn't had a serious loss-time injury in the wood products area since 1996, a year after it launched the course. [ILLUSTRATION OMITTED]
Top Performing Underwriters Among Companies That Drive
50% or More of Their Premium From Specific Line
Medical Malpractice
Ranked by 10-year combined ratio
($ Thousands)
2004
Net 2004
Premiums Combined
Group / Company Name AMB# Written Ratio
NCMIC Group 18579 61,318 99.30
Community Blood Centers' Exch RRG 11569 3,717 85.76
MedAmerica Mut RRG Inc 11431 8,637 95.24
Dentists Benefits Ins Co 10690 2,109 99.75
Natl Group 18249 60,461 103.05
PICA Group 18480 61,438 93.91
PIC WISCONSIN Group 18454 55,495 107.85
CA Healthcare Ins Co Inc, RRG 11230 13,879 99.70
Ophthalmic Mutual Ins Co (A RRG) 10844 36,059 90.12
MI Professional Ins Exch 10804 9,305 107.03
Entire Group (50% or more of premiums) $5,320,101 119.96
5-Year 10-Year
Combined Combined
Group / Company Name Ratio Ratio
NCMIC Group 87.09 78.56
Community Blood Centers' Exch RRG 86.24 87.12
MedAmerica Mut RRG Inc 98.41 89.90
Dentists Benefits Ins Co 92.47 99.25
Natl Group 103.83 100.82
PICA Group 98.14 101.61
PIC WISCONSIN Group 110.53 101.77
CA Healthcare Ins Co Inc, RRG 104.47 102.92
Ophthalmic Mutual Ins Co (A RRG) 103.07 102.94
MI Professional Ins Exch 104.54 104.05
Entire Group (50% or more of premiums) 129.22 121.83
Source: A.M. Best Co.
Medical Malpractice
10-Year Combined Ratio
(%)
NCMIC Group 78.56
Community Blood Centers' Exch (RRG) 87.12
MedAmerica Mut RRG Inc 89.90
Dentists Benefits Ins Co 99.25
Natl Group 100.82
PICA Group 101.61
PIC WISCONSIN Group 101.77
CA Healthcare Ins Co Inc, (RRG) 102.92
Ophthalmic Mutual Ins Co 102.94
MI Professional Ins Exch 104.05
Note: Table made from bar graph.
Workers' Compensation
Ranked by 10-year combined ratio
($ Thousands)
2004
Net 2004
Premiums Combined
Group / Company Name AMB# Written Ratio
Service Ins Group 18385 $46,317 90.38
Charter Ins Group 18396 42,748 92.26
Memic Group 18524 176,063 101.78
United WI Ins Co 01932 67,787 89.81
Petroleum Cas Co 00769 4,910 102.42
Amerisafe Ins Group 18211 240,560 98.95
Accident Fund Ins Co of America 11770 488,533 88.56
New Mexico Mutual Group 18292 66,812 107.54
LA Workers' Comp Corp 11339 192,244 101.24
Meadowbrook Ins Group 18132 120,225 96.60
Entire Group (50% or more of
premiums) $16,593,763 98.36
5-Year 10-Year
Combined Combined
Group / Company Name Ratio Ratio
Service Ins Group 89.83 84.77
Charter Ins Group 91.92 86.48
Memic Group 98.79 89.70
United WI Ins Co 92.78 92.51
Petroleum Cas Co 93.06 93.44
Amerisafe Ins Group 97.74 94.12
Accident Fund Ins Co of America 95.47 94.44
New Mexico Mutual Group 111.63 95.42
LA Workers' Comp Corp 96.10 97.29
Meadowbrook Ins Group 102.09 98.51
Entire Group (50% or more of
premiums) 109.12 111.94
Source: A.M. Best Co.
Workers' Compensation
10-Year Combined Ratio
(%)
Service Ins Group 84.77
Charter Ins Group 86.48
Memic Group 89.70
United WI Ins Co 92.51
Petroleum Cas Co 93.44
Amerisafe Ins Group 94.12
Accident Fund Ins Co of America 94.44
New Mexico Mutual Group 95.42
LA Workers' Comp Corp 97.29
Meadowbrook Ins Group 98.51
Note: Table made from bar graph.
Fidelity and Surety
Ranked by 10-year combined ratio
($ Thousands)
2004
Net 2004
Premiums Combined
Group / Company Name AMB# Written Ratio
Global Surety & Ins Co 04156 $12,365 5.97
Lexon Ins Co 00743 29,782 55.00
Bond Safeguard Ins Co 03507 11,220 48.25
Machinery Ins, Assessable Mut
Insurer 10638 235 53.13
HICA Hldg Group 18285 147,990 54.83
Universal Surety Group 00937 2,728 53.47
Western Ins Co 12055 1,650 58.25
Insurors Indemnity Cos 18609 823 81.54
USIC Group 18655 11,138 96.05
Amer Surety Co 02557 7,434 81.80
Entire Group (50% or more of
premiums) $559,396 73.92
5-Year 10-Year
Combined Combined
Group / Company Name Ratio Ratio
Global Surety & Ins Co 5.49 6.36
Lexon Ins Co 60.61 55.06
Bond Safeguard Ins Co 62.15 64.60
Machinery Ins, Assessable Mut
Insurer 67.31 71.41
HICA Hldg Group 65.14 71.93
Universal Surety Group 57.63 72.37
Western Ins Co 74.34 74.23
Insurors Indemnity Cos 75.43 75.10
USIC Group 79.66 78.96
Amer Surety Co 87.31 85.77
Entire Group (50% or more of
premiums) 89.76 90.30
Source: A.M. Best Co.
Commercial Auto
Ranked by 10-year combined ratio
($ Thousands)
2004
Net 2004
Premiums Combined
Group / Company Name AMB# Written Ratio
Yel Co Ins 11343 $1,198 0.75
Pathfinder Ins Co 00381 1,860 26.72
Daily Underwriters of America 02721 7,471 60.70
Transguard Ins Co of America 00327 99,468 102.77
Amalgamated Cas Ins Co 00117 4,524 97.46
State Natl Cos 18019 45,672 98.41
Gulf States Ins Co 10838 6,005 86.33
Canal Group 03930 385,593 100.19
Lancer Ins Co 02641 61,479 91.99
MAPFRE USA 18116 $6,768 94.38
Entire Group (50% or more of
premiums) $1,398,527 99.63
5-Year 10-Year
Combined Combined
Group / Company Name Ratio Ratio
Yel Co Ins 15.91 37.80
Pathfinder Ins Co 29.86 52.45
Daily Underwriters of America 69.22 69.68
Transguard Ins Co of America 86.54 85.78
Amalgamated Cas Ins Co 90.10 87.65
State Natl Cos 94.02 93.08
Gulf States Ins Co 97.79 98.04
Canal Group 99.81 98.70
Lancer Ins Co 98.19 99.53
MAPFRE USA 101.52 99.90
Entire Group (50% or more of
premiums) 100.35 101.76
Source: A.M. Best Co.
Medical Malpractice
Ranked by Net Premiums Written ($Thousands)
2004
Net 2004
Premiums Combined
Group / Company Name AMB# Written Ratio
MLMIC Group 18439 $643,920 204.76
GE Ins Solutions Group 18572 533,159 98.94
ProAssurance Group 18559 514,798 100.68
Doctors Co Ins Group 18083 476,229 96.69
Health Care Indemnity Inc 03701 370,101 100.05
CNA Ins Cos 18313 347,090 104.67
Norcal Group 18539 285,727 109.40
ProMutual Group 18359 275,954 115.05
Mag Mutual Group 18635 253,056 105.77
ISMIE Mutual Group 18644 223,613 114.02
Entire Industry Total and Averages $7,386,266 112.35
5-Year 10-Year
Combined Combined
Group / Company Name Ratio Ratio
MLMIC Group 165.22 131.85
GE Ins Solutions Group 105.36 105.52
ProAssurance Group 116.85 111.55
Doctors Co Ins Group 110.48 112.07
Health Care Indemnity Inc 110.71 114.55
CNA Ins Cos 146.96 138.11
Norcal Group 121.83 128.19
ProMutual Group 153.76 141.53
Mag Mutual Group 115.90 115.39
ISMIE Mutual Group 125.94 128.25
Entire Industry Total and Averages 135.54 125.48
Source: A.M. Best Co.
Workers' Compensation
Ranked by Net Premiums Written ($Thousands)
2004
Net 2004
Premiums Combined
Group / Company Name AMB# Written Ratio
State Comp Ins Fund CA 04028 $7,949,665 95.62
Liberty Mutual Ins Cos 00060 3,684,035 108.17
St. Paul Travelers Group 18647 2,162,999 100.41
Hartford Ins Group 00048 1,920,776 101.77
Zurich Finl Svcs NA Group 18549 1,266,589 113.86
CNA Ins Cos 18313 1,229,265 123.15
Zenith Natl Ins Group 03020 949,188 87.53
Ace INA Group 18498 921,904 82.22
Chubb Group of Ins Cos 00012 898,988 92.87
W.R. Berkley Group 04655 807,348 102.65
W.R. Berkley Group
Entire Industry Total and Averages $40,049,097 104.90
5-Year 10-Year
Combined Combined
Group / Company Name Ratio Ratio
State Comp Ins Fund CA 106.69 112.89
Liberty Mutual Ins Cos 114.00 112.48
St. Paul Travelers Group 98.47 104.91
Hartford Ins Group 107.80 107.39
Zurich Finl Svcs NA Group 105.65 105.03
CNA Ins Cos 135.64 111.20
Zenith Natl Ins Group 100.58 105.97
Ace INA Group 93.81 109.12
Chubb Group of Ins Cos 95.81 98.92
W.R. Berkley Group 102.02 100.60
W.R. Berkley Group
Entire Industry Total and Averages 112.49 109.91
Source: A.M. Best Co.
Fidelity and Surety
Ranked by Net Premiums Written ($Thousands)
2004
Net 2004
Premiums Combined
Group / Company Name AMB# Written Ratio
St. Paul Travelers Group 18647 $873,386 207.31
Chubb Group of Ins Cos 00012 523,682 63.82
CNA Ins Cos 18313 354,314 64.60
Zurich Finl Svcs NA Group 18549 301,620 130.37
Safeco Ins Cos 00078 232,467 76.51
Berkshire Hathaway Ins 00811 214,857 22.33
Hartford Ins Group 00048 190,510 85.58
HICA Hldg Group 18285 147,990 54.83
Liberty Mutual Ins Cos 00060 146,845 117.90
Great Amer P&C Ins Group 04835 112,375 92.92
Entire Industry Total and Averages $4,707,930 111.21
5-Year 10-Year
Combined Combined
Group / Company Name Ratio Ratio
St. Paul Travelers Group 123.74 106.63
Chubb Group of Ins Cos 75.85 80.94
CNA Ins Cos 93.01 86.49
Zurich Finl Svcs NA Group 111.33 101.22
Safeco Ins Cos 79.94 78.55
Berkshire Hathaway Ins 43.17 51.31
Hartford Ins Group 102.08 97.73
HICA Hldg Group 65.14 71.93
Liberty Mutual Ins Cos 131.18 115.18
Great Amer P&C Ins Group 101.16 93.15
Entire Industry Total and Averages 107.96 98.23
Source: A.M. Best Co.
Fidelity and Surety
10-Year Combined Ratio
(%)
Global Surety & Ins Co 6.36
Lexon Ins Co 55.06
Bond Safeguard Ins Co 64.60
Machinery Ins, Assessable Mut Insurer 71.41
HICA Hldg Group 71.93
Universal Surety Group 72.37
Western Ins Co 74.23
Insurors Indemnity Cos 75.10
USIC Group 78.96
Amer Surety Co 85.77
Note: Table made from bar graph.
Commercial Auto
Ranked by Net Premiums Written ($Thousands)
2004
Net 2004
Premiums Combined
Group / Company Name AMB# Written Ratio
St. Paul Travelers Group 18647 $2,296,121 90.62
Progressive Ins Group 00780 1,613,978 82.35
Zurich Finl Svcs NA Group 18549 1,159,817 84.61
State Farm Group 00088 1,072,717 92.30
Liberty Mutual Ins Cos 00060 1,051,654 95.41
Nationwide Group 05987 834,786 89.10
CNA Ins Cos 18313 833,112 98.14
Hartford Ins Group 00048 731,851 95.34
Auto-Owners Ins Group 04354 703,712 84.49
Allstate Ins Group 00008 629,434 96.34
Entire Industry Total and Averages $25,556,010 92.18
5-Year 10-Year
Combined Combined
Group / Company Name Ratio Ratio
St. Paul Travelers Group 101.09 104.88
Progressive Ins Group 88.04 90.22
Zurich Finl Svcs NA Group 96.65 106.40
State Farm Group 102.96 100.62
Liberty Mutual Ins Cos 116.15 119.83
Nationwide Group 99.77 105.77
CNA Ins Cos 103.61 106.71
Hartford Ins Group 101.85 104.28
Auto-Owners Ins Group 95.70 98.70
Allstate Ins Group 101.45 103.32
Entire Industry Total and Averages 103.36 107.25
Source: A.M. Best Co.
Commercial Auto
10-Year Combined Ratio
(%)
Yel Co Ins 37.80
Pathfinder Ins Co 52.45
Daily Underwriters of America 69.68
Transguard Ins Co of America 85.78
Amalgamated Cas Ins Co 87.65
State Natl Cos 93.08
Gulf States Ins Co 98.70
Lancer Ins Co 99.53
MAPFRE USA 99.90
Note: Table made from bar graph.
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