2012 Super Regional P/C Insurers™

The original criteria and objective definition for Super Regional P/C Insurersª was established in the Feb. 12, 2007, issue of Insurance Journal. Prior to the establishment of an industry-wide definition, a number of property/casualty insurers had referred to themselves as Super Regionals. Demotech Inc., the official research partner of Insurance Journal, has compared the data to the criteria and updated the list of Super Regionals.

To continue the discussion regarding what constitutes a Super Regional and to give definition to this important group of insurers, Demotech, a financial analysis firm based in Columbus, Ohio, analyzed year-end 2011 data. This data was used to classify and stratify those insurers reporting data to the National Association of Insurance Commissioners.

Demotech Company Classification System

The experts at Demotech have refined their classification system for property/casualty insurance companies. The Demotech Company Classification System categorizes all property/casualty insurers into one of 11 categories based on an analysis of data reported by the companies.

The 11 categories that comprise the system are: Nationals, Near Nationals, Super Regionals, Regionals, State Specialists, Coverage Specialists, Strategic Subsidiaries, Risk Retention Groups, Surplus Lines Carriers, Reinsurers and companies with less than $1 million in direct premium written.

A company cannot be assigned to more than one category. Therefore, a company not designated as a Super Regional is given another classification, perhaps Near National, Regional or State Specialist.

Super Regional Criteria and Thresholds

To select the companies for the Super Regional Property/Casualty Insurerª list, Demotech used the following specific, objective qualifying criteria and thresholds:

• Active, individual companies not under regulatory supervision at Dec. 31, 2011;
• Reporting data to the National Association of Insurance Commissioners using the property/casualty annual statement format;
• At least $1 million of direct premium written in each of two to 34 states at Dec. 31, 2011;
• Less than 90 percent of Dec. 31, 2011, direct premium written in any one state;
• Less than 90 percent of Dec. 31, 2011, direct premium written in any one line of business;
• Policyholders surplus of at least $100 million at Dec. 31, 2011;
• Net premium written of at least $50 million at Dec. 31, 2011; and
• Direct premium written of at least $25 million at Dec. 31, 2011.

In general, a Super Regional Property/Casualty Insurerª is an individual company writing multiple lines of insurance in multiple states. Risk retention groups, surplus lines insurers and reinsurers are not eligible for the Super Regional category because they are assigned to other classifications.

The 2012 Super Regional Property/Casualty Insurersª

Demotech identified 155 Super Regional Property/Casualty Insurersª for 2012. They are presented in this exclusive Insurance Journal special report both alphabetically and by size, as ranked by direct premium written as of Dec. 31, 2011.

Also included in this report are the 12 companies that are new to the Super Regional Classification, as well as a list of 19 insurers that have been reclassified into another category based on year-end 2011 information.

“Super Regional insurers are critically important to the insurance industry and to their agents, producers and insureds,” said Joseph Petrelli, president of Demotech. “These companies are strong, stable markets that work hard for their agents, insureds as well as their reinsurers. This is why Insurance Journal expressed interest in quantifying and identifying what criteria can be used to define an insurer as a Super Regional.”

Insurance Journal and Demotech expect this year’s report to further the discussion on the role of Super Regionals, as well as on the definition and criteria used in determining the classification, so that future reports can continue to appreciate an industry definition of Super Regional Property/Casualty Insurersª.

“Insurers and interested readers are encouraged to review the selection criteria and thresholds used to determine the 2012 Super Regionals. Our selection criteria remain quantitative and transparent. We are focused on setting benchmarks at levels that accurately categorize the industry,” said Barry Koestler II, CFA, senior financial analyst and chief ratings officer at Demotech.

The authors stress that this is an objective stratification of the companies that comprise the industry, not ratings of the individual insurers. Inclusion on the list of Super Regionals is not meant to suggest that a company is superior to companies not categorized as Super Regionals.

Future issues of Insurance Journal will report on other categories within the Demotech Company Classification System, including a report on Near National carriers to be featured in June 2012.

Since 1985, Demotech has been providing independent Financial Stability Ratings¨ of property/casualty insurers and title underwriters. Other services include consulting and financial analysis. For more information, visit www.demotech.com.

Please send suggestions, comments and criticisms about the classification and report to Demotech’s Barry Koestler at bkoestler@demotech.com, or Andrea Ortega-Wells, editor in chief for Insurance Journal, at awells@insurancejournal.com.

Alphabetical Listing

Acuity, a Mutual Insurance Co.
Alaska National Insurance Co.
All America Insurance Co.
American Commerce Insurance Co.
American Economy Insurance Co.
American Family Mutual Insurance Co.
American Home Assurance Co.
American Mercury Insurance Co.
American Road Insurance Co.
American Strategic Insurance Corp.
Amerisure Insurance Co.
Amerisure Mutual Insurance Co.
Atlantic States Insurance Co.
Auto Club Insurance Association
Automobile Insurance Co. of Hartford, Connecticut
Auto-Owners Insurance Co.
Bankers Standard Insurance Co.
Bay State Insurance Co.
Berkley Regional Insurance Co.
Bituminous Casualty Corp.
Bituminous Fire and Marine Insurance Co.
Brethren Mutual Insurance Co.
Brotherhood Mutual Insurance Co.
Builders Mutual Insurance Co.
California Casualty Indemnity Exchange
Cambridge Mutual Fire Insurance Co.
Canal Insurance Co.
Capitol Indemnity Corp.
CastlePoint Insurance Co.
CastlePoint National Insurance Co.
Central Mutual Insurance Co.
Century-National Insurance Co.
Cherokee Insurance Co.
Citizens Insurance Co. of America
Civil Service Employees Insurance Co.
Columbia Mutual Insurance Co.
Companion Property and Casualty Insurance Co.
Concord General Mutual Insurance Co.
Country Mutual Insurance Co.
Courtesy Insurance Co.
Cumberland Mutual Fire Insurance Co.
Darwin National Assurance Co.
Dentists Insurance Co.
Donegal Mutual Insurance Co.
Endurance American Insurance Co.
Erie Insurance Co.
Erie Insurance Exchange
Farm Bureau Property & Casualty Insurance Co.
Farm Family Casualty Insurance Co.
Farmers Alliance Mutual Insurance Co.
Farmers Automobile Insurance Association
Farmers Insurance Exchange
Farmers Mutual Hail Insurance Co. of Iowa
Farmers Mutual Insurance Co. of Nebraska
Farmington Casualty Co.
Farmland Mutual Insurance Co.
FCCI Insurance Co.
Federated Rural Electric Insurance Exchange
Federated Service Insurance Co.
Fidelity National Insurance Co.
Fire Insurance Exchange
First Colonial Insurance Co.
Frankenmuth Mutual Insurance Co.
General Casualty Co. of Wisconsin
General Insurance Co. of America
Grange Insurance Association
Grange Mutual Casualty Co.
Gray Insurance Co.
Harford Mutual Insurance Co.
Harleysville Mutual Insurance Co.
Harleysville Preferred Insurance Co.
Harleysville Worcester Insurance Co.
Hartford Insurance Co. of Illinois
Hastings Mutual Insurance Co.
Horace Mann Insurance Co.
Hudson Insurance Co.
Imperium Insurance Co.
IMT Insurance Co.
Indiana Insurance Co.
Insurance Co. of North America
Insurance Co. of the West
Jewelers Mutual Insurance Co.
Lancer Insurance Co.
Lightning Rod Mutual Insurance Co.
Lititz Mutual Insurance Co.
Loya Insurance Co.
Lyndon Property Insurance Co.
Markel American Insurance Co.
MemberSelect Insurance Co.
Merchants Mutual Insurance Co.
Mercury Casualty Co.
Merrimack Mutual Fire Insurance Co.
MHA Insurance Co.
Mid-Century Insurance Co.
Mid-Continent Casualty Co.
Middlesex Insurance Co.
Milbank Insurance Co.
Mitsui Sumitomo Insurance Co. of America
Motorists Mutual Insurance Co.
Motors Insurance Corp.
Mountain West Farm Bureau Mutual Insurance Co.
Mutual of Enumclaw Insurance Co.
National Indemnity Co.
National Liability & Fire Insurance Co.
Nationwide Mutual Fire Insurance Co.
Netherlands Insurance Co.
New York Marine and General Insurance Co.
NGM Insurance Co.
North River Insurance Co.
North Star Mutual Insurance Co.
Occidental Fire and Casualty Co. of North Carolina
Old Republic General Insurance Corp.
Old United Casualty Co.
OneBeacon Insurance Co.
Owners Insurance Co.
Pacific Specialty Insurance Co.
Peerless Insurance Co.
Pekin Insurance Co.
Penn National Security Insurance Co.
Pennsylvania Lumbermens Mutual Insurance Co.
Pennsylvania Manufacturers’ Association Insurance Co.
Pennsylvania National Mutual Casualty Insurance Co.
Physicians Insurance A Mutual Co.
Preferred Mutual Insurance Co.
Preferred Professional Insurance Co.
Progressive Casualty Insurance Co.
Progressive Gulf Insurance Co.
Progressive Northern Insurance Co.
Protective Insurance Co.
Public Service Mutual Insurance Co.
Quincy Mutual Fire Insurance Co.
Republic Underwriters Insurance Co.
Safeco Insurance Co. of Illinois
Secura Insurance, a Mutual Co.
Selective Insurance Co. of America
Selective Way Insurance Co.
Seneca Insurance Co. Inc.
Shelter Mutual Insurance Co.
Sompo Japan Insurance Co. of America
State Auto Property & Casualty Insurance Co.
State Automobile Mutual Insurance Co.
Technology Insurance Co. Inc.
Tower Insurance Co. of New York
Trinity Universal Insurance Co.
Triton Insurance Co.
Unigard Insurance Co.
United Fire & Casualty Co.
Utica Mutual Insurance Co.
Vanliner Insurance Co.
Vermont Mutual Insurance Co.
Virginia Surety Co. Inc.
West Bend Mutual Insurance Co.
Western National Mutual Insurance Co.
Westfield Insurance Co.
Westfield National Insurance Co.