Global Insurance Solutions 2013-14 INSURANCE …patpatia.com/.../Insurance...Report-2013-14-Sample.pdf · 2013-14 INSURANCE COMPANY ANALYSIS REPORT JP MORGAN cover 4 ... Aegon USA

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2013-14INSURANCE COMPANYANALYSIS REPORT

Produced by PATPATIA & ASSOCIATES, INC.

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INSURANCE FINANCE & INVESTMENT

Published by

Profiles of the 250 Largest US Insurance Companies

J.P. Morgan Asset Management is the brand for the asset management business of JPMorgan Chase & Co. and its affiliates worldwide.

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J.P. Morgan Asset Management’s

Global Insurance Solutions

2 | 2013-14 Insurance Company Analysis Report

PATPATIA & ASSOCIATES, INC. INSURANCE FINANCE & INVESTMENT

Table of Contents

Index of Insurance Company Profiles by Assets Under Management 5

Index of Insurance Company Profiles by Alphabet 7

Insurance Asset Management: State of the Industry 9

Letter from Sunny Patpatia, President & CEO, Patpatia & Associates, Inc. 10

Insurance Marketplace Overview 11

Challenges for Insurers in a Post-Financial Crisis Marketplace 12

Addressing the Evolving Marketplace 13

Conclusions 19

Insurance Company Profiles 22

Select Asset Manager Profiles 405

2013-14 Insurance Company Analysis Report | 5


Index of Insurance Company Profiles by AUM

MetLife, Inc. 22American International Group 24TIAA-CREF 27New York Life Insurance Company 29State Farm Insurance 31Prudential Financial, Inc. 34Berkshire Hathaway Group 36Northwestern Mutual 38Aflac 40Manulife Financial (John Hancock) 43Aegon USA Group 45Allstate 47ING U.S., Inc. 50Lincoln Financial Group 52The Hartford 54MassMutual Financial Group 56Allianz of America, Inc. 59Liberty Mutual 61The Travelers Companies, Inc. 63Nationwide Insurance 66Principal Financial Group 68AXA Equitable 70Genworth Financial, Inc. 72Thrivent Financial for Lutherans Group 74Jackson National Group 76Aviva USA 78CNA Insurance Companies 80Pacific Life 82Sammons Financial Group, Inc. 84USAA Group 85Guardian 86Unum Group 88Ameriprise Insurance Company 90Chubb Group of Insurance Companies 92GE Capital Services 94Protective Life Corporation 95Sun Life Financial 97Farmers Insurance Group 99American Equity Investment Life 101Zurich Insurance Group 103CNO Group 104American Financial Group, Inc. 106UnitedHealth Group 108Munich American Holding Corporation 110Great-West Life & Annuity Insurance Company 112Swiss Reinsurance Group 114Symetra Financial Corporation 116ACE Group 118State Compensation Insurance Fund of CA 120American National Group 122Knights of Columbus 124Aetna Inc. 125Mutual of Omaha 127National Life Group 129Cigna Corporation 131Fidelity and Guaranty Life Group 133Fairfax Financial Holdings Limited 135Auto-Owners Insurance Group 136WellPoint, Inc. 137The Progressive Corporation 139American Family Insurance 141OneAmerica Group 142

Citizens Property Insurance 144New York State Insurance Fund 146W.R. Berkley Corporation 148Transatlantic Holdings, Inc. 150Guggenheim Life and Annuity 152Securian Financial Group 153Phoenix Life Insurance Company 155Standard Insurance Group 156Torchmark Corporation 158Health Care Service Corporation 160Erie Insurance Group 161Modern Woodmen of America 163Southern Farm Bureau Life Insurance 164COUNTRY Financial Group 165Cincinnati Insurance Companies 166Assurant, Inc. 168FM Global Group 170Humana Group 172Reinsurance Group of America, Inc. 174CMFG Life Insurance Company 176Woodmen of the World Life Insurance Society 178Ameritas Life Group 179Sentry Insurance 181Penn Mutual 182National Western Life Insurance Company 184Ohio National Financial Services 186Old Republic International Corporation 188Assured Guaranty Group 190The Athene Companies 192Philadelphia Insurance Companies 193Farm Bureau Financial Services 194Mutual of America Life Insurance Company 195Highmark, Inc. 197Mortgage Guaranty Insurance Corporation 198Ambac Financial Group, Inc. 200Security Benefit Group 202New Jersey Manufacturers Insurance Group 203Blue Cross Blue Shield of Michigan 204Medical Liability Mutual Insurance Company 205Everest Re U.S. Group 206XL America Group 208Goldman Sachs Group 210Kemper Corporation 212Forethought Financial Group 214QBE Americas Group 215Radian Group Inc. 216Horace Mann 218California State Auto Association 220The Hanover Insurance Group 221Markel Corporation Group 223HCC Insurance Holdings, Inc. 225Federated Mutual Insurance Company 227California Earthquake Authority 228Reliance Standard Life Insurance Company 229Amica Mutual Insurance Company 231Americo Life, Inc. 233Nuclear Electric Insurance Limited 234Wilton Re U.S. Holdings, Inc. 235White Mountains Insurance Group 237Texas Mutual Insurance Company 239SAIF Corporation 240Selective Insurance Group 242



Index of Insurance Company Profiles by AUM

Harleysville Group 244Blue Cross & Blue Shield of Florida, Inc. 245PartnerRe U.S. 246ProAssurance Group 248The Doctors Company 250EMC Insurance Companies 251American Fidelity Assurance Company 252Presidential Life Insurance Company 254SCF Arizona 255Alleghany Insurance Holdings Group 256Kansas City Life Insurance Company 257SCOR U.S. Group 258Westfield Insurance 259Beneficial Financial Group, Inc. 260Mercury General Group 261Coverys Companies 263Shelter Insurance Companies 264United Fire Group, Inc. 265State Auto Insurance Companies 267Farm Bureau Insurance of Tennessee 269AXIS Capital 270The Lifetime Healthcare Companies 272MAPFRE USA Group 274The Auto Club Group 275Ally Insurance Group 276Horizon Healthcare Services, Inc. 277Physicians Mutual Group 278Farm Bureau Insurance of Michigan 279Coventry Health Care, Inc. 280Blue Cross & Blue Shield of North Carolina 281LifeMap (Regence Life & Health Insurance Co.) 282Aurora National Life Assurance Company 283Argo Group 284Safety National Group 286Independent Order of Foresters 287National Guardian Life Insurance Company 288Kaiser Foundation Group of Health Plans 289Hannover Life Reassurance Co. of America 290PMI Mortgage Group 291Arch Insurance Group 292Utica National Insurance Group 293Blue Cross & Blue Shield of Minnesota 294Savings Bank Life Ins. Co. of Massachusetts 295Alfa Insurance Companies 296Assurity Life Insurance Company 297Security Mutual Life Insurance Co. of New York 298Legal & General America Group 299Tower Group 300Accident Fund Company 301Financial Guaranty Insurance Company 303Homesteaders Life Company 305CareFirst Inc. 306Pekin Insurance Group 308Southern Farm Bureau Casualty 310BlueCross BlueShield of Tennessee, Inc. 311Acuity Insurance 312HIP Group 313Gerber Life Insurance Company 314Pinnacol Assurance Company 315Primerica Group 317Amerisure, Inc. 319Independence Blue Cross 320RLI Group 321

Indiana Farm Bureau Insurance 323Grange Insurance 324AAA Life Group 325BlueCross BlueShield of South Carolina 326Employers Insurance Group 327Navigators Insurance Group 329Citi Assurance Services Group 331HSBC Insurance Group 332Arrowpoint Capital 333Queen City Assurance, Inc. 334Allied World Assurance Group 335The Motorists Insurance Group 337Chesapeake Employers’ Insurance Company 338Kentucky Farm Bureau Group 339The Main Street America Group 340Platinum Underwriters Reinsurance 341Trustmark Companies 343The Andover Companies 345Liberty Bankers Group 346Wellmark Blue Cross & Blue Shield 347BrickStreet Mutual Insurance Company 348Medical Mutual of Ohio 350State Workers’ Insurance Fund 351Meadowbrook Insurance Group 352MagMutual Insurance Company 354NORCAL Group 355IA American Life Insurance Company 356Toa Reinsurance Company of America 357Workers Compensation Fund 359North Carolina Farm Bureau Insurance Group 360Dorinco Reinsurance Company 361Gleaner Life Insurance Society 362Louisiana Workers’ Compensation Corporation 364MTL Insurance Company 365SBLI USA Group 366Endurance Specialty Holdings 367LifeCare Assurance Company 369Pan-American Life Insurance Group 370Columbian Financial Group 371CompSource Oklahoma 372Premera Companies 373West Bend Mutual Insurance Company 375Montana State Fund 376ISMIE Mutual Group 378GuideOne Insurance Companies 379Amerigroup Corporation 380FCCI Insurance Group 381Catholic Financial Life 383Universal American Corporation 384Blue Cross & Blue Shield of Kansas, Inc. 386Physicians’ Reciprocal Insurers 387Syncora Holdings U.S. Group 388Penn National Insurance 390Infinity Property & Casualty Corporation 391Plymouth Rock Group 393Texas Farm Bureau Insurance 394Illinois Mutual Life Insurance Company 395Quincy Mutual Group 396State Volunteer Mutual Insurance Company 397Centene Corporation 398Safety Insurance 400Triple-S Management Corporation 402



Index of Insurance Company Profiles by Alphabet

AAA Life Group 325Accident Fund Company 301ACE Group 118Acuity Insurance 312Aegon USA Group 45Aetna Inc. 125Aflac 40Alfa Insurance Companies 296Alleghany Insurance Holdings Group 256Allianz of America, Inc. 59Allied World Assurance Group 335Allstate 47Ally Insurance Group 276Ambac Financial Group, Inc. 200American Equity Investment Life 101American Family Insurance 141American Fidelity Assurance Company 252American Financial Group, Inc. 106American International Group 24American National Group 122Americo Life, Inc. 233Amerigroup Corporation 380Ameriprise Insurance Company 90Amerisure, Inc. 319Ameritas Life Group 179Amica Mutual Insurance Company 231Arch Insurance Group 292Argo Group 284Arrowpoint Capital 333Assurant, Inc. 168Assured Guaranty Group 190Assurity Life Insurance Company 297Aurora National Life Assurance Company 283Auto-Owners Insurance Group 136Aviva USA 78AXA Equitable 70AXIS Capital 270Beneficial Financial Group, Inc. 260Berkshire Hathaway Group 36Blue Cross & Blue Shield of Florida, Inc. 245Blue Cross & Blue Shield of Kansas, Inc. 386Blue Cross & Blue Shield of Minnesota 294Blue Cross & Blue Shield of North Carolina 281Blue Cross Blue Shield of Michigan 204BlueCross BlueShield of South Carolina 326BlueCross BlueShield of Tennessee, Inc. 311BrickStreet Mutual Insurance Company 348California Earthquake Authority 228California State Auto Association 220CareFirst Inc. 306Catholic Financial Life 383Centene Corporation 398Chesapeake Employers’ Insurance Company 338Chubb Group of Insurance Companies 92Cigna Corporation 131Cincinnati Insurance Companies 166Citi Assurance Services Group 331Citizens Property Insurance 144CMFG Life Insurance Company 176CNA Insurance Companies 80CNO Group 104Columbian Financial Group 371CompSource Oklahoma 372COUNTRY Financial Group 165Coventry Health Care, Inc. 280Coverys Companies 263Dorinco Reinsurance Company 361EMC Insurance Companies 251Employers Insurance Group 327

Endurance Specialty Holdings 367Erie Insurance Group 161Everest Re U.S. Group 206Fairfax Financial Holdings Limited 135Farm Bureau Financial Services 194Farm Bureau Insurance of Michigan 279Farm Bureau Insurance of Tennessee 269Farmers Insurance Group 99FCCI Insurance Group 381Federated Mutual Insurance Company 227Fidelity and Guaranty Life Group 133Financial Guaranty Insurance Company 303FM Global Group 170Forethought Financial Group 214GE Capital Services 94Genworth Financial, Inc. 72Gerber Life Insurance Company 314Gleaner Life Insurance Society 362Goldman Sachs Group 210Grange Insurance 324Great-West Life & Annuity Insurance Company 112Guardian 86Guggenheim Life and Annuity 152GuideOne Insurance Companies 379Hannover Life Reassurance Co. of America 290Harleysville Group 244HCC Insurance Holdings, Inc. 225Health Care Service Corporation 160Highmark, Inc. 197HIP Group 313Homesteaders Life Company 305Horace Mann 218Horizon Healthcare Services, Inc. 277HSBC Insurance Group 332Humana Group 172IA American Life Insurance Company 356Illinois Mutual Life Insurance Company 395Independence Blue Cross 320Independent Order of Foresters 287Indiana Farm Bureau Insurance 323Infinity Property & Casualty Corporation 391ING U.S., Inc. 50ISMIE Mutual Group 378Jackson National Group 76Kaiser Foundation Group of Health Plans 289Kansas City Life Insurance Company 257Kemper Corporation 212Kentucky Farm Bureau Group 339Knights of Columbus 124Legal & General America Group 299Liberty Bankers Group 346Liberty Mutual 61LifeCare Assurance Company 369LifeMap (Regence Life & Health Insurance Co.) 282Lincoln Financial Group 52Louisiana Workers’ Compensation Corporation 364MagMutual Insurance Company 354Manulife Financial (John Hancock) 43MAPFRE USA Group 274Markel Corporation Group 223MassMutual Financial Group 56Meadowbrook Insurance Group 352Medical Liability Mutual Insurance Company 205Medical Mutual of Ohio 350Mercury General Group 261MetLife, Inc. 22Modern Woodmen of America 163Montana State Fund 376Mortgage Guaranty Insurance Corporation 198



Index of Insurance Company Profiles by Alphabet

MTL Insurance Company 365Munich American Holding Corporation 110Mutual of America Life Insurance Company 195Mutual of Omaha 127National Guardian Life Insurance Company 288National Life Group 129National Western Life Insurance Company 184Nationwide Insurance 66Navigators Insurance Group 329New Jersey Manufacturers Insurance Group 203New York Life Insurance Company 29New York State Insurance Fund 146NORCAL Group 355North Carolina Farm Bureau Insurance Group 360Northwestern Mutual 38Nuclear Electric Insurance Limited 234Ohio National Financial Services 186Old Republic International Corporation 188OneAmerica Group 142Pacific Life 82Pan-American Life Insurance Group 370PartnerRe U.S. 246Pekin Insurance Group 308Penn Mutual 182Penn National Insurance 390Philadelphia Insurance Companies 193Phoenix Life Insurance Company 155Physicians Mutual Group 278Physicians’ Reciprocal Insurers 387Pinnacol Assurance Company 315Platinum Underwriters Reinsurance 341Plymouth Rock Group 393PMI Mortgage Group 291Premera Companies 373Presidential Life Insurance Company 254Primerica Group 317Principal Financial Group 68ProAssurance Group 248Protective Life Corporation 95Prudential Financial, Inc. 34QBE Americas Group 215Queen City Assurance, Inc. 334Quincy Mutual Group 396Radian Group Inc. 216Reinsurance Group of America, Inc. 174Reliance Standard Life Insurance Company 229RLI Group 321Safety Insurance 400Safety National Group 286SAIF Corporation 240Sammons Financial Group, Inc. 84Savings Bank Life Ins. Co. of Massachusetts 295SBLI USA Group 366SCF Arizona 255SCOR U.S. Group 258Securian Financial Group 153

Security Benefit Group 202Security Mutual Life Insurance Co. of New York 298Selective Insurance Group 242Sentry Insurance 181Shelter Insurance Companies 264Southern Farm Bureau Casualty 310Southern Farm Bureau Life Insurance 164Standard Insurance Group 156State Auto Insurance Companies 267State Compensation Insurance Fund of CA 120State Farm Insurance 31State Volunteer Mutual Insurance Company 397State Workers’ Insurance Fund 351Sun Life Financial 97Swiss Reinsurance Group 114Symetra Financial Corporation 116Syncora Holdings U.S. Group 388Texas Farm Bureau Insurance 394Texas Mutual Insurance Company 239The Andover Companies 345The Athene Companies 192The Auto Club Group 275The Doctors Company 250The Hanover Insurance Group 221The Hartford 54The Lifetime Healthcare Companies 272The Main Street America Group 340The Motorists Insurance Group 337The Progressive Corporation 139The Travelers Companies, Inc. 63Thrivent Financial for Lutherans Group 74TIAA-CREF 27Toa Reinsurance Company of America 357Torchmark Corporation 158Tower Group 300Transatlantic Holdings, Inc. 150Triple-S Management Corporation 402Trustmark Companies 343United Fire Group, Inc. 265UnitedHealth Group 108Universal American Corporation 384Unum Group 88USAA Group 85Utica National Insurance Group 293W.R. Berkley Corporation 148Wellmark Blue Cross & Blue Shield 347WellPoint, Inc. 137West Bend Mutual Insurance Company 375Westfield Insurance 259White Mountains Insurance Group 237Wilton Re U.S. Holdings, Inc. 235Woodmen of the World Life Insurance Society 178Workers Compensation Fund 359XL America Group 208Zurich Insurance Group 103



Penn National Insurance

Business Lines Peer Group Headquarters P&C Only Property $1B-$5B Harrisburg, PA

2011 Premium Rating TIA $0.51B A- / NR $1.12B

I. Business Overview A. Background

The mutual company was formed in 1919 by a Pennsylvania farmer’s association to specialize in workers’ compensation for farmers. It has since branched out to provide full lines of business and personal insurance, expanding from an agricultural and industrial focus to a service-economy focus.

B. Invested Asset Distribution ($ in B) C. Contacts 717-234-4941

Assets Pct.

Life & Annuity - - CEO:

CFO:

CIO:

Kenneth R. Shutts [email protected]

Gregory R. Stine [email protected]

None

Property & Casualty $1.12 100%

Health - -

Total $1.12

D. Target Markets Northeastern and Southern U.S. in 9 states (PA, MD, DE, NJ, VA, NC, SC, TN, AL); home & auto owners and service sector businesses

II. Product Liabilities

A. Premium Distribution ($ in B) B. Product Set Its commercial lines include business

income, crime, inland marine, auto, property, general liability, workers’ compensation, extended coverage credits, and umbrella insurance. Its personal lines include auto (i.e. replacement cost, loan/lease coverage), home, renters, dwelling fire, umbrella, and boat insurance. It also provides a range of surety and fidelity bonds.

III. Asset Management Detail

Penn National holds 84.6% of its invested assets in bonds, 10.6% in stocks, 2.6% in cash, 2% in mortgages loans, and 0.2% in other investments, including real estate.

Assets and premiums as of 12/31/11. All other data as of 1/3/13.

Property$0.3569.6%

Liability$0.1530.4%



Infinity Property & Casualty Corporation

`Business Lines Peer Group Headquarters P&C Only Property $1B-$5B Birmingham, AL

2011 Premium Rating TIA $1.0B A / NR $1.1B

I. Business Overview

A. Background Infinity Property & Casualty Corporation (IPCC) is a public holding company that

specializes in automobile coverage through its three subsidiaries. It began as Dixie Insurance

Company (later The Infinity Group) in 1955, and became publicly listed in 2003.

B. Invested Asset Distribution ($ in B) C. Contacts 205-870-4000

Assets Pct.

Life & Annuity - - CEO:

CFO:

CIO:

James R. Gober [email protected]

Roger Smith [email protected]

None

Property & Casualty $1.1 100%

Health - -

Total $1.1

D. Target Markets Geographic Focus: Licensed in 44 states; 91% of total gross premiums came from urban areas in AZ, CA, FL, GA, IL, NV, PA, and TX

Client Focus: Auto owners and small to mid-sized businesses

II. Product Liabilities

A. Premium Distribution ($ in B) B. Product Set The company provides personal &

commercial auto insurance, as well as

classic collectible auto insurance. In 2011,

93% of total gross premiums came from

personal auto insurance, and 6% from

commercial policies.

Property$1.0

100.0%



Infinity Property & Casualty Corporation

III. Distribution

Captive Agents Institutional Sales Ind. Agents/Brokers Bank & B/D Other

It utilizes approximately 12,900 independent agencies and brokers to distribute products.

IV. Asset Management Approach

A. Asset Classes B. Bond Quality

Company High Yield: 6.7%

Peer Group High Yield: 2.7%

C. Asset Management Detail

Infinity utilizes unaffiliated money managers for its fixed income portfolio, who are

reviewed on a quarterly basis by the company’s CFO and Investment Committee. The

average duration of the fixed maturity portfolio is 3.0 years. The company also owns a

Vanguard ETF designed to track the FTSE Global All Cap Index. Net investment income

decreased in 2012 relative to 2011, primarily due to a general decline in market interest rates

for high quality bonds.

Assets and premiums as of 12/31/11. All other data as of 1/3/13.

6.9%

29.0%

25.5%

23.0%

4.6%

10.9%

Gov't Agency

Municipals

MBS/ABS

Corp/Other Bonds

Stocks/Equity

Cash

NAIC Grade 187.8%

NAIC Grade 25.5%

Below Investment Grade6.7%

Documents

Global Insurance Solutions 2013-14 INSURANCE …patpatia.com/.../Insurance...Report-2013-14-Sample.pdf · 2013-14 INSURANCE COMPANY ANALYSIS REPORT JP MORGAN cover 4 ... Aegon USA