After analyzing nearly 3,000 property & casualty insurers and more than 700 life & health insurers, The Ward Group this week unveiled its 2017 list of the Ward’s 50 list of top-performing companies.
Each Ward's 50 company has passed all safety and consistency screens and achieved superior performance over the five years analyzed. Ward Group has conducted the Ward's 50 analysis since 1991. It is a financial analysis of the insurance industry based on publicly available data and conducted independently of the Ward Group’s annual benchmarking programs.
The Ward’s 50 property-casualty group of insurance companies produced an 11.4% statutory return on average equity from 2012 to 2016, compared to 8.4% for the property-casualty industry overall.
The Ward's 50 life-health group of insurance companies produced a 17.5% statutory return on average equity from 2012 to 2016, compared to 9.6% for the life-health industry overall.
"Low investment returns, rising loss costs, and competitive market conditions continue to impact financial returns for the industry. In selecting the Ward's 50, we identified companies that pass financial stability requirements and measure their ability to grow while maintaining strong capital positions and underwriting results," said Jeff Rieder, partner and head of Ward Group.
In addition to achieving greater levels of income returns, the Ward's 50 benchmarks also outperformed in other key performance benchmarks:
• The Ward's 50 life-health group of companies outpaced the industry for five-year policyholder surplus growth (19.8% compared to 16.0%) and net premium income growth (10.8% compared to 0.9%).
• The Ward's 50 property-casualty group compared 6.4 points lower for the five-year combined ratio (92.6% compared to 99.0%) and grew policyholder surplus by 30.9% compared to 20.6% for the industry since 2012.
• Net premiums written for the Ward's 50 property-casualty group grew 30.1% compared to the industry's 16.6% growth.
The Ward's 50 benchmark group also continues to achieve lower expense ratios. "The expense ratio decreased slightly in 2016 for the property-casualty but increased for the life-health benchmark. We still find the Ward's 50 benchmarks comparing better than the industry average," said Rieder.
In 2016, expenses relative to revenue were 9.3% lower for the Ward's 50 property-casualty group of companies and 10.0% lower for the Ward's 50 life-health group.
Next page: List of the Top 50 P&C companies
- 2016 FMO Executive Outlook, Part I: The M&A climate, planning for the DOL Fiduciary Rule, other key challenges
- Prudential restructures U.S. life and annuity business in effort to expand customer value proposition
- What it takes to be an ‘Agent for the Future’
- Wearables and telematics on verge of huge impact in P&C markets
- Next wave of fee-based FIAs hit the market
- How great credit/no credit impacts auto insurance premiums
- 4 Real Life Stories: Life Happens honors agents for exhibiting outstanding client service
- Optional benefits: Changing a ‘no’ to a ‘yes’