Virginia: George Washington, Tobacco and the Pentagon

The United States Census Bureau’s Census 2000 estimated the population of the State of Virginia at 7,078,515. Approximately 82 percent of the adult residents had graduated from high school and about 30 percent had earned a bachelor’s degree or higher. The capital, Richmond, has a population of 197,790.

From an employment perspective, the primary industries in Virginia are:

Countrywide as of Sept. 30, 2003, the aggregate is $313,781,216,000 of P/C insurance. Virginia calendar year 2002 loss ratio of 64.8 percent was slightly above the countrywide year to date Sept.30, 2003, loss ratio of 62.3 percent. It was interesting to note that Virginia’s homeowners loss ratio for calendar year 2002 was 60.9 percent, which is virtually identical to the countrywide average at Sept. 30, 2003, of 61.8 percent. Similarly, homeowners insurance premium comprised 10.8 percent of the P/C premium written in Virginia. Homeowners premium comprised 10.7 percent of the premium written countrywide.

What surprised me the most was that Virginia farmowners insurance premium for calendar year 2002 was $31,319,000. I expected it to be more. However, in a state with 16,336 farming, fishing and forestry employees, perhaps that is about right.

The Virginia economy is service oriented. The employed civilian population comprises nearly 48 percent of Virginia’s population. It was distributed as follows:

Given the anticipated growth in the number of jobs located in Virginia and the diversification of the Virginia economy, I would expect the growth rate of Virginia’s P/C insurance marketplace, as measured by direct premium written, to exceed the growth rate experienced on a countrywide basis.

Joseph L. Petrelli is president and founder of Demotech Inc., a Columbus, Ohio-based financial analysis and actuarial services firm. Petrelli is a member of the Casualty Actuarial Society,
American Academy of Actuaries and the Conference of Actuaries in Public Practice. Additional information can be found at
www.demotech.com.