Homeowners underwriting losses for the industry show that 2024 losses are tempered by a substantial portion of Ian losses borne by Florida state sponsored entities and global property reinsurers.
Still, individual carrier results are materially influenced by geographic mix relative to the location of recent weather events, and more limited Florida market participation versus other states.
U.S. Homeowners’ Insurers Results
Compiling statutory results of the largest homeowners’ writers reveals that State Farm Group retains a strong lead in market share with 20% of industry premiums followed by Allstate with approximately 10%.
While these two underwriters experienced sharp increases in personal auto losses in 2024, homeowners’ results were relatively favorable as Allstate reported a GAAP segment combined ratio of 94% for the year.
State Farm reported a 3% underwriting margin in its homeowners and commercial multi-peril business combined.
| № | Insurer | NWP $ mn | Share | Change |
| 1 | State Farm | 22,946 | 20.2% | 9.9% |
| 2 | Allstate | 11,075 | 9.8% | 15.4% |
| 3 | USAA | 8,398 | 7.4% | 12.0% |
| 4 | Liberty Mutual | 8,283 | 7.3% | 4.2% |
| 5 | Travelers | 6,336 | 5.6% | 17.0% |
| 6 | American Family | 5,709 | 5.0% | 15.4% |
| 7 | Farmers Group | 5,164 | 4.5% | 12.0% |
| 8 | Nationwide | 3,630 | 3.2% | 7.5% |
| 9 | Chubb | 2,969 | 2.6% | 6.4% |
| 10 | Erie Insurance Group | 2,191 | 1.9% | 12.7% |
Statutory homeowners’ combined ratios by company will be available shortly in insurance expense exhibit (IEE) data. The segment incurred loss ratio increased by 1.6 points from the prior year to 68%.
TOP 10 U.S. Homeowners’ Insurers by Incurred Loss Ratios
| № | Insurer | Loss Ratios 2022 | 5Y Avg. |
| 1 | Erie Insurance Group | 77.1% | 66.4% |
| 2 | Nationwide | 75.9% | 64.2% |
| 3 | USAA | 75.0% | 60.8% |
| 4 | Liberty Mutual | 73.0% | 71.6% |
| 5 | Travelers | 71.2% | 61.5% |
| 6 | American Family | 69.9% | 64.5% |
| 7 | Farmers Group | 67.3% | 64.3% |
| 8 | Allstate | 65.4% | 66.6% |
| 9 | State Farm | 61.5% | 65.8% |
| 10 | Chubb | 56.0% | 73.8% |
Among the top 10 homeowners’ insurers, Chubb reported the lowest loss ratio for the year at 56% followed by State Farm (62%). Erie Insurance, Nationwide and USAA each reported a loss ratio of 75% or higher.
Hurricane Milton is not likely to affect credit for rated property and casualty insurers and global reinsurers given very strong capital levels. However, Florida property insurers are vulnerable to the extent the major hurricane generates losses in excess of reinsurance limits.
Milton’s impact will extend across P&C insurers, especially as primary homeowners’ insurers in Florida manage risk by passing a substantial portion of business to third-party reinsurers. Major national insurers hold minimal market share in Florida and have reduced their exposure through non-renewals, aiming to balance risk exposure and manage reinsurance program costs.
Economic and insured losses from Hurricane Milton remain uncertain, Milton is the second major storm to hit the U.S. within two weeks, following Hurricane Helene.
Hurricane Milton is anticipated to be one of the most powerful and economically detrimental hurricanes to make landfall in the western region of Florida.
Beinsure Media analysts reviewed S&P report and catastrophe modeling companies’ forecasts regarding the potential losses from Hurricane Milton and present a review on the Milton’s impact on major Florida’s insurance companies and the global reinsurance sector.
Due to the uncertainty around the scale of losses, S&P Global is analyzing several industry loss scenarios and their potential effects on U.S. insurers. For context, Hurricane Ian, a Category 4 storm that hit Florida in 2022, led to insured losses of about $60 bn.
Florida’s homeowners’ insurance market, already fragile, faces further destabilization with Milton’s destruction. Adequate reinsurance coverage remains a critical concern for Florida homeowners’ specialists, given low absolute capital, limited diversification, and uncertainties about raising capital following major loss events.
FAQ
2024 losses have been tempered partly because Florida state-sponsored entities and global property reinsurers covered a significant portion of losses from Hurricane Ian, reducing the burden on individual insurers.
Insurer results vary significantly based on geographic exposure, particularly in relation to recent weather events. Insurers with less exposure in Florida, where storms like Hurricane Ian occurred, have generally shown more favorable outcomes.
State Farm Group leads with 20% of the market, followed by Allstate at about 10%, as per the statutory results of top homeowners’ insurers.
State Farm and Allstate reported relatively favorable homeowners results, contrasting with sharp personal auto losses. Allstate’s homeowners GAAP combined ratio was 94%, and State Farm had a 3% underwriting margin in combined homeowners and commercial multi-peril business.
Erie Insurance, Nationwide, and USAA reported loss ratios of 75% or more, with Chubb showing the lowest at 56% among the top 10 insurers.
Hurricane Milton is unlikely to impact credit ratings of major U.S. insurers and global reinsurers, thanks to strong capital levels. However, Florida insurers remain vulnerable, particularly if losses exceed reinsurance limits.
Milton has intensified challenges in Florida’s already fragile homeowners market. Reinsurance coverage is critical as capital remains limited, and raising new capital may prove difficult following substantial loss events.
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Fact-checked by Oleg Parashchak – Editor-in-Chief Beinsure Media, CEO Finance Media Holding by Fitch Ratings data