Insurance companies with the most profitable claims/PE ratios
Source: NAIC data: 2020
Looking at this graph, it is obvious that companies with the direct loss and DCC to EP ratio are the most profitable, but what exactly is a direct loss and DCC to EP ratio? DCC stands for Defense and Cost Control and EP stands for Earned Premium. Thus, direct loss and DCC combined refer to the average amount a carrier has spent on claims, while PE refers to the amount of benefits collected after part of a policy expires. The reason a lower number is better is that this number represents the portion of PE that was spent on claims. For example, Assurant Inc. has a ratio of 51.72. This means that he spent 51.72% of his EP on direct losses and DCCs.
So which of the top 25 insurers in the US is the most profitable (by this metric at least)? The answer is Assurant, with its direct loss and DCC to EP ratio of 51.72. Founded in 1892, Assurant has seen many changes over the past 129 years. Global expansion began in 1995 and the carrier went public on the New York Stock Exchange in 2004 under the symbol AIZ. Its current CEO is Alan Colberg, who graduated from Harvard Business School in 1987 and has been with the company since 2011. semester 2021 only.
Allstate, which was founded in 1931 as part of the Sears empire and spun off from its parent company in 1993, comes in second with a ratio of 55.30. Since then, Allstate has become a major player, insuring approximately 16 million homes. The current CEO is Thomas J. Wilson, who graduated from the University of Michigan and later earned an MBA from Northwestern University. He has worked at Allstate since 1995 and became its CEO in 2007.