The list of property & casualty companies selected for 2014
For the 24th consecutive year, the Ward Group has published its list of the Top 50 Property and Casualty Insurance Companies. In developing its list, the Ward Group analyzed the financial information of over 3,000 property and casualty insurers. Each of the carriers on the list passed the safety and consistency screens and has superior performance over the last five years analyzed. In addition, the Top 50 companies selected have produced a 10.6% statutory return on average equity between the years of 2009 and 2013. This compares to the 6.9% statutory return on equity for the overall property and casualty industry.
“Most insurers saw improvements in both financial returns and overall premium levels,” explained Jeff Rieder, Partner and Head of Ward Group. “In clear signs of continued optimism, our research shows considerable investments are being made in technology, product enhancements and identifying ways to deliver a better customer experience. Companies will be challenged to manage the costs of these initiatives, but have strong financial positions to support the investments. Total policyholder surplus continues to grow and overall financial stability for the industry remains very strong. In selecting the Ward’s 50, we identified companies that pass financial stability requirements and measure their ability to grow while maintaining strong capital positions and underwriting results.”
How the Top 50 are determined… An insurer must pass certain minimum thresholds in order to be designated a Ward’s Top 50 P&C Company. Criteria used in the evaluation includes:
- Surplus and premiums of at least $50 million for each of the 5 years analyzed
- Net income in at least 4 of the last 5 years
- Risk-based capital ratio of at least 100% for each of the 5 years analyzed
- Compound annual growth in premiums between -10% and +40%
- Net written premium divided by gross written premium is greater than 50%
- Gross written premium divided by net written preium is less than 130%
- Ranked in top 10% of peer business mix benchmark group
- Must pass Ward Group’s evaluation of company operations
For those that pass this minimum threshold, the remaining companies are then ranked by performance according to the following metrics:
- Five year average Return on Average Equity
- Five year average Return on Average Assets
- Five year average Return on Total Revenue
- Five year growth in Net Premiums Written
- Five year improvement in Leverage Ratio
- Five year average Combined Ratio
This year’s Top 50 Only two Massachusetts-based insurers were on this year, The Andover Companies and Coverys. Overall, five of the Top 50 were based in New England, the two Massachusetts insurers plus Vermont-based Vermont Mutual, Connecticut-based Travelers and Rhode Island-based Metropolitan Property & Casualty Company. The following is a complete list of this year’s Top 50:
ACE American Insurance Company
ACUITY
Alaska National Insurance Company
Alleghany Group
Allstate Insurance Company
American Financial Group
AMERISAFE
The Andover Companies
Assurant Group
Auto Club Enterprises Insurance Group
Chubb Group
Cincinnati Insurance Group
Coverys
The Doctors Company
Eastern Alliance Insurance Group
Erie Insurance Group
First Insurance Company of Hawaii, LTD
FM Global
Franklin Mutual Insurance Group
GEICO*
Goodville Mutual Casualty Company
HCC Insurance Holdings Group
Island Insurance Companies
Jewelers Mutual Insurance Company
Lackawanna Casualty Company
Markel Corporation Group
Metropolitan Property and Casualty Insurance Company
MMG Insurance Company
Munich Reinsurance America, Inc
Nodak Mutual Insurance Company
North Star Mutual Insurance Company
Pacific Specialty Insurance Company
Philadelphia Insurance Companies
ProAssurance
Progressive Insurance Group
RLI Insurance Company*
Rural Mutual Insurance Company
SECURA Insurance Companies
Texas Mutual Insurance Company
Travelers Insurance Group
United Educators
USAA Group*
Utica First Insurance Company
Vermont Mutual Insurance Company
W.R. Berkley Corporation
West Bend Mutual
Western Mutual Insurance Group
Western National Insurance Group
Westfield Insurance
Zurich American Insurance Company
