Top National Insurance Journal Stories of 2024

The three largest insurance brokers each announced or closed multi-billion-dollar acquisitions in 2024. The topic was one of many in which readers of Insurance Journal kept a close eye this year.

Also the last 12 months saw difficulties in the personal auto insurance line of business give way to problems within homeowners insurance, leading some carriers to make dramatic adjustments to books of business – and leading a perennial leader of personal insurance to post some historically bad financial results.

Readers of the National section also regularly clicked on stories related to layoffs, Trump’s appeal bond from Chubb, hurricanes, and litigation.

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The Big Get Bigger — Marsh McLennan, Aon, Gallagher With Significant Acquisitions

Arthur J. Gallagher most recently made headlines with its agreement to acquire AssuredPartners for $13.45 billion cash to expand its reach in the U.S. middle-market, but it was the third of the three big brokers to announce or wrap up large acquisitions in 2024. AssuredPartners ranked No. 5 in Insurance Journal‘s 2024 Top 100 Independent P/C Agencies list based on P/C revenue. AM Best’s ranking of the world’s biggest insurance brokers put AssuredPartners in 14th based on 2023 total revenue.

Arthur J. Gallagher ranked third on the AM Best’s list, behind March McLennan and Aon – who each also made headlines by completing buys of McGriff Insurance Services and NFP, respectively. In November, Marsh McLennan completed the purchase of McGriff Insurance Services for $7.75 billion. In April, Aon completed a $13 billion acquisition of middle-market P/C broker NFP.

Bad Results for the Good Neighbor

State Farm’s brand recognition is so broad, so it is no surprise to see the popularity of stories regarding its historical financial troubles. It isn’t every day a 100-year-old insurer, especially of State Farm’s stature, records its worst underwriting loss ever. State Farm did just that in 2022 and 2023. Results for 2024 are upcoming.

AM Best in April downgraded the financial strength rating of State Farm General. The insurance industry rating firm has its eye on the homeowners insurance line, which has caused headaches for many more insurers than State Farm. AM Best recently switched its personal lines outlook from negative to stable, but that had more to do with improvements in auto insurance results. The homeowners line remains volatile. However, Allstate sees an opportunity. During its third quarter earnings call, Allstate said it is ready to grow homeowners.

Double-Digit Rate Increases From the Largest Auto Insurers

Well, it’s not the only reason for the turnaround in auto insurance, but it’s a big one: Rate increases. Stories concerning auto insurers’ battle to turn a profit were the most read a year ago, and this year what insurers did about it were as popular – including this one about S&P Global Market Intelligence’s report that all of the top 10 U.S. auto insurers raised rates double digits. A better regulatory environment and accelerated technology adoption also helped get insurers back on track.

Rate increases were certainly a part of the improvement plans of Allstate and Progressive. Strategies and timing were a bit different, but the earnings of these insurers who count on agents were clicked on regularly.

Progressive to End ‘Landlord Insurance’

Speaking of Progressive, its decision this year to stop offering dwelling fire insurance was widely read. Dwelling fire, often dubbed “landlord insurance” and aimed at non-primary residences and rental properties, represented 3.6% of the insurer’s property policies as of Sept. 30. Progressive’s overall plan is aggressive. And getting rid of unprofitable business is part of the strategy. A year ago it got started by dropping more than 100,000 homeowners and landlord policies in Florida.

Trump Posts $91.6M Bond From Chubb

This one had a bunch of obvious ingredients for reader-heavy content. Chubb’s Federal Insurance Co. issued a surety bond to Donald Trump. It allowed the now president-elect to appeal an $83.3 million verdict against him in the E. Jean Carroll defamation case. Based on the subject matter and the lack of understanding regarding appeal bonds, Chubb found itself in more than insurance trade-publication headlines, leading CEO Evan Greenberg to issue a letter to brokers, clients, and investors.

More Unfortunate Industry Layoffs

As in 2023, 2024 had its share of news on layoffs within the insurance industry. During the year, pink slips were handed out at Liberty Mutual, USAA, and Nationwide.

Insurers Shed Lines of Business

Remember that bit above about the homeowners line? The headwinds in homeowners, or a rethinking of personal lines business entirely, led some insurers this year to change appetites.

Among the most popular stories was American National’s exit in homeowners. The insurer started leaving the homeowners insurance business behind in nine states including California and Louisiana. Then it exited the line in all states. Main Street America Insurance said last summer it will stop offering personal lines insurance in favor of a commercial lines strategy.

After Tens of Billions in Insured Losses, Record-Breaking Hurricane Season Ends

The 2024 Atlantic hurricane season packed a punch, set some records, and may have been one of the costliest hurricane seasons to the insurance industry when all is said and tallied. Five hurricanes (Debby, Beryl, Francine, Helene, and Milton) made U.S. landfall in 2024, and two (Helene and Milton) were major hurricanes. Total estimated insured losses from the hurricanes could approach $70 billion.

Industry Critiques Trump’s Auto Insurance Rate Data, Promise to Cut Premiums

A September social media post by Trump may have inadvertently pointed out why industry trade associations spend so much time trying to educate our leaders and lawmakers. “Your Automobile Insurance is up 73% — VOTE FOR TRUMP, I’LL CUT THAT NUMBER IN HALF!,” he said. Trump’s reference to a 73% increase in auto insurance rates “seems to have no basis in fact” said economist Robert Hartwig, a professor in the Moore School of Business at the University of South Carolina, and former president of the Insurance Information Institute.

AIG Sues Newly Launched Dellwood Insurance and Its Founders

Three gentlemen left AIG to start a new insurance company. AIG didn’t like the way they did that one bit. Therefore, shortly after Dellwood Insurance launched, it was sued by AIG. Dellwood said AIG’s claims are “ginned up.” AIG called Dellwood’s arguments to dismiss the suit, “quixotic.” To be continued.

Other well-read stories of 2024:

• DEI-related: Walmart’s DEI Compromise Holds Lessons for Corporate America | Death of Nasdaq Diversity Rule Signals More Trouble for DEI | Companies Are Dropping the D or E From DEI to Avoid Criticism
• Insurer Chubb Readies $350M Payout Tied to Baltimore Bridge Collapse
• Allstate’s National General Sued by DOJ Over Alleged Force-Placed Insurance ‘Scheme’
• GEICO’s ‘Eye-Popping’ 2023 Insurance Profits, Falling Employee Counts
• Former UPS Driver Wins $238 Million Verdict in Suit Over Firing (later reduced to $39.6M)

Here’s a video discussing popular National articles, produced by Wells Media Group editors and our new-media team.