Reprinted With Permission Of The Publisher AUTO

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Reprinted With Permission Of The PublisherAUTO INSURANCE REPORTThe Authority on Insuring Personal and Commercial VehiclesVol. 26#27/1228April 8, 2019INSIDEAmeriprise gives AmFam a bigger stakein California. Page 3American Family is now well-positionedto compete for AARP member insurancecontract. Page 3Pennsylvania Supreme Court rulingspurs class actions. Page 5NJM and Plymouth Rock are amongnew players in Pennsylvania. Page 8THE GRAPEVINEInsurers Charging More ForDistracted Driving ViolationsInsurers increasingly penalize drivers for distracted drivingviolations, but the size of thesepenalties varies greatly, according to an analysis by The Zebra,an auto insurance search engine.They are also far less than penalties for drunk driving. A ticketfor distracted driving would haveraised rates an average 0.2% in2011, costing less than 3 peryear; in 2017, the same violationwill raise rates 16%, or about 226, a rise of almost 8,000%,compared with a 33% increase forall other violations, according tothe report. Penalties range fromjust under 2.51 in New York to 681 in Michigan. Vermont andConnecticut have the largest ratehikes for distracted driving. AIRAmerican Family Continues ToDiversify With Ameriprise BuyAmerican Family’s acquisition of Ameriprise Autoand Home last week marks the mutual insurer’s fifth majorexpansion and diversification in the past seven years, givingAmerican Family a powerful tool for attracting an entirelynew type of customer, a new call center, as well as important geographic diversification.The most valuable part of the acquired business is acontract worth more than 1 billion in personal lines premium to sell insurance to customers of Costco, the wholesale warehouse chain. American Family will continue theCostco contract after the sale. American Family will retainthe Ameriprise employees and keep the Ameriprise productname until a new name can be developed and approved.American Family will pay Ameriprise Financial about 1.05 billion to acquire the property and casualty business.Amerprise Financial will now focus on its wealth managePlease see AMERICAN FAMILY on Page 2Court Ruling Rattles Stable AutoInsurance Market in PennsylvaniaInsurers in Pennsylvania are facing a wave of litigationfollowing a high court decision that struck down decades ofprecedent by declaring that the household exclusion in personal auto policies violates the state’s insurance law.Some lawyers predict the case will have far-reachingimplications for the way insurers underwrite policies andhandle claims in Pennsylvania, which is an otherwisehealthy and increasingly competitive market that continuesto attract new carriers, including New Jersey Manufacturers, Plymouth Rock and Root.In January, the Pennsylvania Supreme Court ruledin Gallagher v. Geico that the plaintiff, a man severely injured in a motorcycle accident, should receive benefits fromstacking underinsured motorists coverage in his personalauto insurance policy despite an exclusion that precludedPlease see PENNSYLVANIA on Page 533765 Magellan Isle Dana Point, CA 92629 (949) 443-0330 www.riskinformation.com

Reprinted With Permission Of The PublisherAUTO INSURANCE REPORTPage 2April 8, 2019(Our charts below show 2017 data becausement and asset management businesses.not all companies have reported for 2018, makAmeriprise reported 822.8 million in 2018ing industry totals preliminary. We will havepersonal auto direct premium written, up 6.8%final data in May.)from 2017. Preliminary data shows the industryA decade ago American Family leadershiprose a total of 7.2%. Amerprise also reportedwas gloating about not writing on the coasts, 280.8 million in 2018 homeowners multiperil,avoiding Florida hurricanes and catastrophicdown 19.7% from 2017. The industry total prelawyers, California’s earthquake and firesmium rose about 5.2% in preliminary data.and catastophic regulation, the broad range ofThe combined enterprises will have abouttroubles presented by Texas, and the big-city 5.8 billion in personal auto premium, bringingcomplexity of New York. Under the “be carefulAmerican Family, the ninth-largest U.S. autowhat you wish for” column, over the next sevinsurer, closer to Nationwide, ranked eighth,eral years American Family’s Midwestern focusFamily InsuranceGroup on the property sidewhich will still be nearlyAmerican 1 billion larger.proved to be rise brings American Family a signifi- in particular. Today,(000)American Family touts theWritten withMarket 351.9GroupIndustryWritten MarketGroupIndustryPremiumcant presence in California,millionacquisitionofAmeriprisea waybalanceitsPremiumShare Loss Ratio Loss 0172017201720162016201620162016-17Statein 2018 personal auto premium written and 67.0 geographic risk concentration. Though most ofWisconsinin homeowners 583,24318.7 %59.4 %63.1 % 558,05418.9by%55.2 %64.2 % Ameri4.5%millionpremium.Americanthat balancecomesaddingCalifornia,Missouri 506,153 13.0 %66.8 %67.3 % 471,420 13.1 %69.3 %72.7 %7.4%Family reported 61.0 million in personal autoprise brings a modest amount of new exposureMinnesota 418,487 11.6 %63.0 %63.6 % 387,722 11.4 %55.9 %62.1 %7.9%and 113.8 million in homeowners in 2018.Please see AMERICAN FAMILY on Page 3AMERICAN FAMILY Continued from Page 1Colorado 384,8928.4 %100.4 %82.2 %Arizona 276,8335.7 %Auto71.4%68.6 %PersonalInsurance 340,3858.4 %American Family Insurance GroupIllinois hioFloridaIndianaTennesseeGeorgiaSouthIowa sseeTotals 227,157WrittenPremium 178,6842017 176,153 583,243 171,186 506,153 159,806 418,487 111,227 384,8924.4 %68.7 %12.3 %65.6 % Industry63.5 %MarketGroupShare Loss Ratio Loss Ratio3.5%78.1%67.1201720172017%2.6 %18.7%4.5 %13.0%57.459.4 %%61.966.8 %%60.863.1 %%61.967.3 %%77.168.7 %%66.671.4 %%70.264.6 %%63.268.6 %%1.9 %11.6%6.38.4 %%92.163.0 %%69.9100.4 %% 87,583 227,157 69,913 178,6844.5 %12.3%3.0 %3.5%82.865.6 %%74.978.1 %% 54,693 159,806 52,467 111,2271.31.9 %%9.76.3 %% 101,238 324,588 91,870 276,833 66,296 176,153 56,791 171,186 50,931 101,238 43,126 91,870 32,453 87,583 28,262 69,913 27,659 66,296 16,154 56,79164.6 %8.14.4 %%3.25.7 %%0.22.6 %%0.34.5 %%0.68.1 %%9.23.2 %%0.24.5 %%0.53.0 %%2.90.2 %%0.50.3 %%77.457.4 %%67.461.9 %%64.592.1 %%59.469.9 %%61.677.1 %%43.366.6 %%78.182.8 %%74.974.9 %%62.877.4 %%80.767.4 %%71.163.6 %%64.782.2 %%67.263.5 %%73.767.1 %%70.160.8 %%71.361.9 %%65.071.1 %%64.964.7 %%63.070.2 %%56.263.2 %%76.667.2 %%65.773.7 %%65.070.1 %%67.071.3 %% 54,693 1.90%1.3 %64.5 %65.0 % 4,381,96270.3%68.8%SouthDakota 52,4679.7%59.4%64.9 %Data Source: SNL Financial and the Auto Insurance Report Database. 294,8454.2 % 247,689%By State20175.7(000) 212,022WrittenPremium 169,2022016 174,360 558,054 158,880 471,420 115,100 387,722 103,657 340,385 91,626 294,845 90,671 247,68963.064.2 %%66.872.7 %%7.94.2 %%3.45.7 %%62.960.2 %%65.763.7 %%66.066.4 %%68.373.4 %%1.5 %11.4%6.38.4 %%1.31.5 %%9.96.3 %% 24,690 54,720 11,044 41,71873.4 %54.255.2 %%54.769.3 %% 50,268 115,100 50,174 103,657 31,929 78,863 28,148 68,72663.7 %66.4 %2.8 %18.9%4.5 %13.1%4.6 %12.3%3.2 %3.5% 45,227 91,626 42,673 90,67185.0 %60.2 %12.3 %64.2 % Industry66.7 %MarketGroupShareLoss Ratio Loss Ratio3.5%80.6%70.7%201620162016 78,863 212,022 68,726 169,202 54,720 174,360 41,718 158,88084.9 %0.22.8 %%0.24.5 %%0.67.9 %%9.43.4 %%0.24.6 %%0.63.2 %%2.90.2 %%0.40.2 %% 50,268 1.87%1.3 % 4,005,549 50,1749.9 %96.755.9 %%55.784.9 %%71.464.2 %%59.180.6 %%69.754.2 %%69.654.7 %%74.596.7 %%52.755.7 %%66.162.9 %%50.865.7 %%76.071.4 %%74.159.1 %%69.869.7 %%64.169.6 %%74.5%65.1%52.7 5%7.7%7.4%77.762.1 %%62.485.0 %%38.8%7.9%7.3%13.1%71.866.7 %%77.370.7 %%11.1%7.1%1.7%5.6%72.963.0 %%71.566.8 %%67.577.7 %%65.362.4 %%65.566.0 %%68.168.3 %%79.871.8 %%69.577.3 %%66.972.9 %%71.871.5 %%67.5%72.0%65.3 %Lossratio is incurred losses asa percentage0.6of %direct premiumdividendsadjustmentexpense.Pennsylvania 50,93161.6 % earned63.0and% does not include 45,2270.6 %or loss 66.1%65.5 46.3%36.1%8.8%9.4%4.6%12.6%North Dakota 43,1269.2 %43.3 %56.2 % 42,6739.4 %50.8 %68.1 %1.1%Idaho 27,6592.9 %62.8 %65.0 % 24,6902.9 %69.8 %66.9 %12.0% 4,381,9621.90%70.3%68.8% 4,005,549 1.87%65.1%72.0%9.4%Warning: Auto Insurance Report is a confidential, copyrighted newsletter for subscribers only.Texas 32,4530.2 %be reproduced78.1 %76.6%%76.0%79.8 %1.6%No part of this publicationmayby anyform 31,929or means, 0.2includingphotocopying,scanning, fax or email, withoutthe%Publisher.For informationcall(949)Virginia 28,262 prior0.5 %permission74.9 % of65.7 28,1480.6 %74.1%69.5 %443-0330.0.4%Alabama 16,154Totals0.5 %80.7 %67.0 % 11,0440.4 %64.1 %71.8 %46.3%

Reprinted With Permission Of The PublisherAUTO INSURANCE REPORTApril 8, 2019Page 3If American Family can build up the Ameriprise operation, it could be a formidable comin New York, doubles the Texas business, andexpands Florida. American Family is still a Mid- petitor for the AARP contract.Improving the book won’t be easy. Ameriwestern company, but can no longer be considprise put its auto and home business up for saleered a regional insurer.One of the more interesting parts of this deal because of poor performance. The Ameripriseexpense ratio of about 4% is well below theis the competitor it creates for The Hartford in10% industry average, but higher than its directthe affinity marketing arrangement with AARP.response marketing peers, according to SNLThe Hartford has enjoyed a long alliance withFinancial. Using the same methodology, Geico,AARP, selling property and casualty productsUSAA and Amica are all under 3%.to its 38 million members. The business, whichThe Ameriprise auto insurance book of busirepresents more than 90% of Hartford’s personallines premium, has been shrinking. According to ness has consistently run a higher combinedAmeripriseInc.ratio than theindustry. The business needs to bethe Hartford’s 10-K report for 2018,“Business FinancialPersonalAutoInsuranceByState2017(000) proposition in terms ofrepriced, always a trickysold to AARP members, either direct or throughWrittenMarketGroupIndustryWritten MarketGroupIndustryPremiumand customersatisfaction.Fortunately,independent agents, amountedto earnedpremiPremiumShareLoss RatioLoss RatioretentionPremiumShareLossRatio Loss RatioChange2016201620162016-17Stateof 3.0 billion, 3.22017AmericanFamilycan takeits timeumsbillion2017and 3.32017billion 2017as a mutual,2016California 312,1601.1 %74.1 %70.1 % 280,1011.1 % in 85.211.4%and absorbsome lossesthe %name72.9of%customerin2018, 2017 and 2016,respectively.”Washington 55,3211.1 %75.7 %67.1 % 54,6011.1 %70.1 %70.7 %stability. And though American Family is not1.3%The Hartford reported lower new businessMichigan 43,3210.5 %89.9 %82.7 % 49,5160.6 %80.0 %89.2 %-12.5%sales as well as lower retention with AARP.Please see AMERICAN FAMILY on Page 10AMERICAN FAMILY Continued from Page 2Texas 34,973New Jersey 28,1950.4 %Auto65.3%65.0 %PersonalInsuranceNew hingtonGeorgiaMichiganMinnesotaTexasNevadaNew YorkMarylandNew rginiaCarolinaWisconsin Totals 34,562 24,940WrittenPremium 22,9962017 22,396 312,160 17,646 55,321 15,071 43,321 14,246 34,973 11,773 34,562 11,401 28,195 10,709 24,940 10,389 22,996 10,388 22,396 9,809 17,646 9,386 15,071 9,046 14,246 7,543 11,773 6,084 11,401 5,215 10,709 4,959 10,389 4,511 10,388 4,018 9,8090.2 %85.4 %76.6 % 30,312Ameriprise Financial Inc.0.3 %72.5 %69.2 %0.5 %56.8 % Industry68.6 %MarketGroupShare Loss Ratio Loss Ratio0.8%50.5%63.2201720172017%0.11.1 %%0.41.1 %%0.20.5 %%0.40.2 %%0.50.3 %%0.20.4 %%0.20.5 %%0.10.8 %%0.40.1 %%0.20.4 %%0.30.2 %%0.10.4 %%0.10.5 %%0.20.2 %%0.10.2 %%0.30.1 %%0.10.4 %%0.10.2 %%68.474.1 %%114.475.7 %%65.389.9 %%67.785.4 %%94.672.5 %%64.965.3 %%59.956.8 %%99.050.5 %%66.068.4 %%57.1 %114.4%77.665.3 %%62.867.7 %%68.594.6 %%94.664.9 %%69.859.9 %%95.099.0 %%50.766.0 %%72.357.1 %% 38,233 22,612WrittenPremium 21,8572016 22,249 280,101 14,995 54,60173.769.2 %%69.765.0 %% 11,861 38,233 11,300 29,46862.468.6 %%64.663.2 %%66.171.3 %%65.782.2 %%63.171.1 %%60.863.6 %%68.573.7 %%61.969.7 %%63.062.4 %%67.264.6 %%67.366.1 %%70.665.7 %% 9,386 0.33%0.3 %77.6 %63.1 % 770,10674.2%68.8%Ohio 9,0460.1%62.8%60.8 %Data Source: SNL Financial and the Auto Insurance Report Database.0.3 % 29,468%By State20170.4(000)71.370.1 %%82.267.1 %%71.182.7 %%63.676.6 %%0.2 % 13,870 49,516 13,956 30,312 11,247 22,612 10,379 21,857 11,203 22,249 11,451 14,995 8,781 13,870 8,958 13,956 8,430 11,861 5,618 11,300 5,532 11,247 4,583 10,379 4,482 11,203 3,995 11,45184.1 %79.8 %97.6 %66.9 %84.5 %69.0 %0.5 %85.6 % Industry73.4 %MarketGroupShareLoss Ratio Loss Ratio0.8%64.9%68.3%2016201620160.11.1 %%0.41.1 %%67.285.2 %%96.570.1 %%71.572.9 %%85.070.7 %%0.60.3 %%0.20.4 %%73.584.5 %%84.897.6 %%77.369.0 %%73.266.9 %%0.20.6 %%0.40.2 %%0.20.5 %%0.20.8 %%0.40.1 %%0.20.4 %%0.30.2 %%0.10.4 %%0.20.6 %%0.20.2 %%0.10.2 %%0.30.2 %%0.10.4 %%0.10.2 %% 8,781 0.35%0.3 % 738,692 8,9580.1 %84.280.0 %%63.284.1 %%78.785.6 %%62.864.9 %%91.367.2 %%70.896.5 %%90.884.2 %%45.863.2 %%67.273.5 %%75.684.8 %%73.878.7 %%61.162.8 %%32.091.3 %%75.870.8 %%90.8%80.6%45.8 1.4%17.7%1.3%77.789.2 %%62.179.8 %%8.7%-12.5%2.1%15.4%63.673.4 %%66.468.3 %%-4.8%10.3%0.1%5.2%-0.7%-9.6%0.9%-4.3%66.971.5 %%69.585.0 %%-7.3%0.7%-14.3%17.7%70.577.3 %%66.873.2 %%-10.5%-0.7%8.3%0.9%72.766.9 %%77.569.5 %%0.6%-7.3%0.6%-14.3%64.277.7 %%63.062.1 %%65.563.6 %%71.866.4 %%64.2%72.0%63.0 %Lossis incurred losses as 7,543a percentage0.1of %direct na68.5 % earned68.5and% does not include 8,4300.2 %or loss 67.2%70.5 .5%Indiana 6,0840.2 %94.6 %61.9 % 5,6180.2 %75.6 %66.8 %8.3%Missouri 4,5110.1 %50.7 %67.3 % 4,4820.1 %32.0 %72.7 %0.6% 770,1060.33%74.2%68.8% 738,692 0.35%80.6%72.0%4.3%Warning: Auto Insurance Report is a confidential, copyrighted newsletter for subscribers only.Pennsylvania 5,2150.1 %be reproduced69.8 %63.0 5,532%73.8photocopying,%65.5 %-5.7%No part of this publicationmayby %any form ormeans,0.1includingscanning, fax or email, withoutthe% Publisher.For informationcall(949)Utah 4,959 prior0.3 %permission95.0 % of67.2 4,5830.3 %61.1%71.8 %443-0330.8.2%South CarolinaTotals 4,0180.1 %72.3 %70.6 % 3,9950.1 %75.8 %77.5 %0.6%

Reprinted With Permission Of The PublisherPage 4AUTO INSURANCE REPORTApril 8, 2019PennsylvaniaPennsylvaniaPersonal AutoAuto InsurersInsurersPersonalGroups RankedRanked byby TotalTotal 20172017 DirectDirect PremiumPremium WrittenWritten (000)(000)GroupsGroup NameNameGroupMkt LossLossMktshare RatioRatio20172017share2017 20172017Premium 2017PremiumState Farm Mutual 1,779,915State Farm Mutual 1,779,915Erie Insurance Group 1,153,856Erie Insurance Group 1,153,856Allstate Corp. 998,919Allstate Corp. 998,919Progressive Corp. 875,579Progressive Corp. 875,579Nationwide Mutual Group 786,109Nationwide Mutual Group 786,109Berkshire Hathaway/GEICO 706,897Berkshire Hathaway/GEICO 706,897Liberty Mutual 424,106Liberty Mutual 424,106Travelers Companies Inc. 335,963Travelers Companies Inc. 335,963USAA Insurance Group 299,488USAA Insurance Group 299,488Farmers Insurance Group 192,162Farmers Insurance Group 192,162Donegal Insurance Group 126,880Donegal Insurance Group 126,880Penn National Insurance 98,293Penn National Insurance 98,293Hartford Financial Services 92,539Hartford Financial Services 92,539CSAA Insurance Exchange (NorCal) 60,545CSAA Insurance Exchange (NorCal) 60,545MetLife Inc. 56,838MetLife Inc. 56,838Westfield Insurance 53,908Westfield Insurance 53,908American Family Insurance Group 50,931American Family Insurance Group 50,931Safe Auto Insurance Co. 49,166Safe Auto Insurance Co. 49,166American Independent Cos. Inc. 44,999American Independent Cos. Inc. 44,999Chubb Ltd. 43,470Chubb Ltd. 43,470Auto Club Exchange Group (SoCal) 32,490Auto Club Exchange Group (SoCal) 32,490Amica Mutual Insurance Co. 31,860Amica Mutual Insurance Co. 31,860Agency Insurance Co. of Maryland Inc. 31,381Agency Insurance Co. of Maryland Inc. 31,381Goodville & German Mutual Group 28,866Goodville & German Mutual Group 28,866Mutual Benefit Insurance Co. 28,410Mutual Benefit Insurance Co. 28,410National General Holdings Corp. 24,434National General Holdings Corp. 24,434NJM Insurance 22,297NJM Insurance 22,297Capitol Insurance Co. 20,705Capitol Insurance Co. 20,705Selective Insurance Group Inc. 20,522Selective Insurance Group Inc. 20,522Grange Mutual Casualty Co. 17,514Grange Mutual Casualty Co. 17,514Kemper Corp. 16,939Kemper Corp. 16,939Horace Mann Educators Corp. 16,751Horace Mann Educators Corp. 16,751Main Street America 15,156Main Street America 15,156Markel Corp. 14,895Markel Corp. 14,895American National Insurance 14,740American National Insurance 14,740Cincinnati Financial Corp. 14,553Cincinnati Financial Corp. 14,553MMG Insurance Co. 12,656MMG Insurance Co. 12,656State Auto Insurance Companies 11,236State Auto Insurance Companies 11,236Mapfre 11,063Mapfre %57.8%76.4%76.4%Mkt LossLossMktshare RatioRatio20162016share2016 20162016Premium 2016Premium 1,654,528 1,654,528 1,094,243 1,094,243 982,571 982,571 787,831 787,831 789,432 789,432 602,848 602,848 431,759 431,759 304,125 304,125 271,916 271,916 182,315 182,315 118,076 118,076 88,430 88,430 97,827 97,827 62,296 62,296 51,918 51,918 51,870 51,870 45,227 45,227 43,705 43,705 57,590 57,590 42,848 42,848 24,990 24,990 30,660 30,660 23,464 23,464 26,446 26,446 28,793 28,793 23,171 23,171 19,850 19,850 18,513 18,513 16,491 16,491 14,996 14,996 16,360 16,360 15,805 15,805 8,377 8,377 12,953 12,953 14,145 14,145 14,062 14,062 12,893 12,893 11,639 11,639 6,930 .0%84.9%84.9%Mkt LossLossMktshare RatioRatio20152015share2015 20152015Premium 2015Premium 1,577,153 1,577,153 1,044,586 1,044,586 941,294 941,294 697,760 697,760 774,044 774,044 548,793 548,793 434,817 434,817 280,281 280,281 246,536 246,536 166,060 166,060 112,898 112,898 81,966 81,966 96,056 96,056 61,413 61,413 48,169 48,169 51,020 51,020 33,450 33,450 47,360 47,360 44,574 44,574 41,232 41,232 23,097 23,097 30,185 30,185 18,236 18,236 24,720 24,720 27,931 27,931 23,025 23,025 18,803 18,803 22,895 22,895 15,635 15,635 14,937 14,937 17,507 17,507 15,319 15,319 7,149 7,149 11,396 11,396 14,003 14,003 13,496 13,496 13,248 13,248 12,813 12,813 2,681 2,681Statewide TotalsTotals 8,745,38663.0% 8,270,32665.5% 7,840,873Statewide 8,745,38663.0% 8,270,32665.5% 7,840,873Source: SNL Financial, by permission, and the Auto Insurance Report database.Source:Financial,by permission,and earnedthe AutoandInsurancedatabase.Loss ratioSNL incurredlosses/directpremiumdoes notReportincludedividends or loss adjustment expense.Loss ratio incurred losses/direct premium earned and does not include dividends or loss adjustment %56.7%86.2%86.2%66.8%66.8%Warning: Auto Insurance Report is a confidential, copyrighted newsletter for subscribers only.No part of this publication may be reproduced by any form or means, including photocopying, scanning, fax or email, without prior permission of the Publisher. For information call (949) 443-0330.

Reprinted With Permission Of The PublisherAUTO INSURANCE REPORTApril 8, 2019Page 5State Market Focus: PENNSYLVANIAContinued from Page 1coverage for vehicles in the same household thatare insured by a separate policy. In this case,Geico wrote two separate policies, one for themotorcycle and one for Gallagher’s two automobiles.Under Pennsylvania law, stacked uninsuredand underinsured coverage – on all vehicles andall policies – is the default coverage for everyinsured. An insured can waive stacked coverage in exchange for a lower premium by signinga standard statutory form. The court found thatthe household exclusion in the personal autopolicy “impermissibly acts as a de facto waiverof stacked uninsured and underinsured motoristcoverages.”Despite the “explicit requirement that an insurer must receive an insured’s written acknowledgment that he knowingly decided to waiveUM/UIM coverage, the household vehicle exclusion strips an insured of default UM/UIM coverage without requiring an insurer to demonstrate,at a bare minimum, that the insured was evenaware that the exclusion was part of the insurance policy,” the court wrote. “This practice runscontrary to the [Motor Vehicle Financial Responsibility Law] and renders the household vehicleexclusion invalid and unenforceable.”Soon after the Jan. 23 decision, plaintiff lawyers began filing class-action lawsuits on behalfof defendants who were denied stacked UM/UIM benefits because of a household exclusion.Lawsuits against several insurers – includingUSAA, Geico and Allstate – have been movedto federal court, while others remain in statecourt.While the case before the Supreme Court applied specifically to the stacking of two policiesissued by the same insurer, plaintiff lawyers areexpected to use the case to attack household exclusions more broadly. The question now is howinsurers, the courts, regulators and the legislaturewill respond.“The Supreme Court’s decision in Gallagher has far-reaching implications for insurancePlease see PENNSYLVANIA on Page 6PennsylvaniaAuto Insurance Profit MarginsTen-Year Summary, Percent of Direct Premiums EarnedLine of BusinessPersonal Auto LiabPersonal Auto PhysPersonal Auto TotalComm. Auto Liab2017 2016Total TotalProfit Profit8.25.72014 2013 2012 2011 2010 2009Total Total Total Total Total TotalProfit Profit Profit Profit Profit Profit7.49.48.910.710.87.12008 AvgTotal TotalProfit Profit6.3 .612.2Comm. Auto Phys6.6Comm. Auto Total9.015.6Total All .210.012.1 11.88.34.111.19.86.2 10.6*Auto; Home, Farm & Commercial Multiperil; Fire; Allied; Inland Marine; Med Malpractice; Other Liability; Workers Comp; All OtherNote: Profit calculations are by Auto Insurance Report using data from the National Association of InsuranceCommissioners. Calculations are estimates, some based on national averages.Warning: Auto Insurance Report is a confidential, copyrighted newsletter for subscribers only.No part of this publication may be reproduced by any form or means, including photocopying, scanning, fax or email, without prior permission of the Publisher. For information call (949) 443-0330.

Reprinted With Permission Of The PublisherAUTO INSURANCE REPORTPage 6April 8, 2019State Market Focus: PENNSYLVANIAPennsylvaniaCommercial Auto Insurers“Just how far-reaching these implications areremains to be seen; however, what is clear is thatcarriers that do business in Pennsylvania, bothbecause of its effect on underwriting and claims- Gallagher dramatically changed the landscapeGroupsit RankedTotal 2017 DirectPremiumWritten(000)for insurancecarriersthat offerpersonal automohandling, and becauseappears tobyinvalidatebilepoliciesinPennsylvania.”a commonly used exclusion and the substantialMkt LossMkt LossMkt Loss2016Supreme2015RatioshareCourt,Ratio in a footnoteshareRatioThein the mabody of case law interpreting it,”2017lawyersshareBryanGroup NamePremium 2017 2017Premium 2016 2016Premium 2015 2015jorityopinion, acknowledged 149,350the complicationsShayand Marni Sabrina Bergerwrote in aErie Insurance 162,799 10.9% 56.9% 155,992 11.1% 56.9%11.1% 60.0%blogpost for their law firm, Post 110,553and Schell.see%PENNSYLVANIAon7Progressive Corp.7.4% 62.3% 91,574 Please6.5% 58.9 77,0845.7% Page49.3%Continued from Page 5Travelers Companies Inc.Nationwide Mutual GroupBaldwin & Lyons, Inc.Zurich Insurance Group 94,8986.4%60.8% 85,5166.1%55.1% 80,8226.0%50.7% 79,1775.3%50.8% 73,2765.2%43.7% 65,7314.9%40.9%PennsylvaniaCommercial Auto InsurersSelective InsuranceGroupsGroup Inc.Liberty Mutual 91,496 78,9736.2%5.3%56.3%64.3% 94,769 82,9036.7%5.9%61.8%51.6%4.0%201763.2%Direct 57,2734.1% Written57.0%Ranked 59,807by TotalPremiumCincinnati Financial Corp.TokioMarineGroupNamePennNational InsuranceErie InsuranceOldRepublicInternational Corp.Progressive rkshire HathawayInc.NationwideMutual GroupChubbBaldwinLtd.& Lyons, Inc.MunichReZurich InsuranceGroupAmericanFinancial GroupSelective InsuranceGroup Inc.Inc.AmericanInternational eFinancial Corp.AcuityMutualInsuranceTokio MarineWestfieldInsurancePenn NationalInsuranceSentryInsuranceMutual Corp.OldRepublicInternationalW.R. ervicesBerkshire HathawayInc.HartfordFinancial ServicesChubb Ltd.State FarmMunichReCNAFinancialCorp.Group Inc.AmericanFinancialFederatedMutualAmerican International GroupMarkelCorp.MotoristsInsurance UticaNationalInsurance GroupWestfieldInsuranceEMCInsuranceSentry InsuranceCompaniesMutualLancerW. R. Berkley Corp.Arch ranceCo.HartfordBenefitFinancialServicesIAT InsuranceStateFarmJamesRiver GroupCNA FinancialCorp.Holdings Ltd.FederatedMutualTotalsStatewide 53,5963.6% 35,055 162,799 33,346 110,5532.4%10.92.27.4% 24,899 79,177 22,657 78,9731.75.3%1.55.3%Mkt2.7%2017share 39,724 20172.7%Premium 40,569 32,836 94,898 31,402 91,496 22,165 59,807 21,685 53,596 21,138 40,569 19,527 39,724 18,804 35,055 18,362 33,346 18,018 32,836 16,965 31,402 14,405 24,899 14,155 22,657 12,430 22,165 12,207 3%1.54.0% 43.363.2%1.5% .4%43.3 11,670 21,138 11,251 19,5270.851.8%1.5% 112.20.8%43.71.484.9%0.8% 72.651.0%1.3 10,583 18,018 9,987 16,9650.71.2%0.7%1.1 11,042 18,804 10,967 18,362 9,943 14,405 9,822 14,155 8,509 2.4% 52,1813.7% 32,728 155,992 25,618 91,5742.3%11.11.86.5% 24,963 73,276 23,912 82,9031.85.2%1.75.9%Mkt2.8%2016share 38,201 20162.7%Premium 39,160 31,057 85,516 21,224 94,769 23,766 57,273 26,153 52,181 18,605 39,160 16,877 38,201 20,648 32,728 17,550 25,618 17,124 31,057 16,516 21,224 17,052 24,963 12,835 23,912 13,868 23,766 10,514 26,153 10,993 18,605 8,721 16,877 9,138 20,648 11,000 17,550 9,801 17,124 8,902 16,516 9,166 17,052 9,176 12,835 3,861 .7%47.3%69.368.653.9%89.361.4%1.21.8% 57.853.6%0.9% 101.41.752.1%1.0% % 101.40.3%54.91.015.9% 98,227 71,693 50,063(000) 49,7497.3%5.3%3.7%3.7%Mkt2.9%2015share 34,721 20152.6%Premium 38,866 32,340 149,350 23,028 77,0842.4%11.11.75.7% 23,874 65,731 22,020 71,6931.84.9%1.65.3% 28,482 80,822 28,572 98,227 23,172 50,063 36,185 49,749 15,280 38,866 14,726 34,721 20,461 32,340 16,695 23,028 21,144 28,482 15,545 28,572 15,302 23,874 12,557 22,020 13,347 23,172 9,471 36,185 8,585 15,280 6,797 14,726 8,263 20,461 10,

Apr 08, 2019 · mium to sell insurance to customers of Costco, the whole-sale warehouse chain. American Family will continue the Costco contract after the sale. American Family will retain the Ameriprise employees and keep the Ameriprise product name until a new name can be developed and appr