Homeowners underwriting losses for the industry show that 2023 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 2023 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 2023, 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.
| Rank | 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 for 2023 increased by 1.6 points from the prior year to 68%.
TOP 10 U.S. Homeowners’ Insurers by Incurred Loss Ratios
| Rank | 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.
Source: Fitch Ratings
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Fact-checked by Oleg Parashchak – Editor-in-Chief Beinsure Media, CEO Finance Media Holding
