The source for this week's data tables is the NAIC Annual Statement Database, via Highline Data, based on data available through mid-July. The insurance data is derived principally from National Association of Insurance Commissioners statutory data.
Data for our report was retrieved from the Insurance Analyst PRO online product of Highline Data, which excludes data for some state funds (including the State Compensation Insurance Fund in California) per an agreement with the NAIC.
Highline Data, headquartered in Cambridge, Mass., is a provider of insurance industry financial performance data and educational services. Highline Data is part of Summit Business Media, parent company of National Underwriter.
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Charts: Individual group and company direct results on the "NU Top 50 Workers' Comp Writers" table and the accompanying " WC Results By State" table were calculated using premium, loss and expense data from the from state pages of the annual statement.
Net (of reinsurance) results on the Top-50 chart are from the Insurance Expense Exhibit of the annual statement.
Group premium changes include the impact of acquisitions.
For example, a 39 percent increase for Employers Insurance Group reflects the late-2008 acquisition of AmCOMP. (In other words, the increase was calculated by comparing total 2008 premium for the group including AmCOMP to 2007 premiums for Employers Insurance Group excluding AmCOMP.) Excluding the acquisition impact (including AmCOMP premiums in both years) would produce an overall premium decline of 15 percent.
Definitions: A pure loss ratio is the ratio of incurred losses to earned premiums.
To calculate a loss and loss adjustment ratio, defense costs and other claims-handling costs are added to incurred losses before dividing by earned premiums.
A combined ratio is essentially the sum of a loss and loss adjustment ratio and an expense ratio–which compares underwriting expenses, such as commissions, to written premiums. A ratio of policyholder dividends to earned premiums is also deducted.
Incurred losses used in loss ratio and combined ratio calculations for any given calendar year consist of losses paid and reserves set up for claims that occurred during that year (current accident year incurred losses) and changes in loss reserves for claims that occurred in prior years.
State Funds Excluded: The Highline database excludes data for some (but not all) state funds representing more than $3 billion in premiums. As a result, some industry figures in our charts differ from those in a companion story by NCCI.
Missing funds include the State Compensation Insurance Fund of California (SCIF), the New York State Insurance Fund, the State Workers' Insurance Fund in Pennsylvania, and the State Compensation Fund in Arizona (SCF Arizona).
Based on data from other sources, SCIF, the NYSIF and SCF Arizona would rank in the Top 25.
According to information on the SCIF Web site, for example, SCIF's net earned premiums totaled $1.7 billion in 2008, and SCF Arizona's Web site reports 2008 net earned premiums of just over $400 million.
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