Georgia is More than Peaches and Peanuts

The U.S. Census Bureau’s 2000 census estimated the population of the State of Georgia at 8.2 million. About 79 percent of the adult residents had graduated from high school and about 24 percent had earned a bachelor’s degree or higher. The capital, Atlanta, has a population of 416,474.

From an employment perspective, the primary industries in Georgia are:

From a property/casualty perspective, Georgia accounted for $10.9 million of direct written premium. Countrywide as of Sept. 30, 2003 the aggregate is $313.7 million of P/C insurance written. The Georgia calendar-year 2002 loss ratio of 63 percent was virtually identical to the countrywide year-to-date Sept. 30, 2003 loss ratio of 62.3 percent. Homeowners multiple peril, private passenger auto liability and auto physical damage comprised nearly 52 percent of the direct written premium in 2002. Despite the competitive marketplace, the statewide loss ratio for calendar year 2002 was an acceptable 63 percent. A diversified P/C insurer with a typical expense ratio had a chance to earn a pre-tax underwriting profit.

The Georgia economy is diverse. The employed civilian population comprises almost one-half of Georgia’s population. It is distributed as follows:

Given the anticipated growth in the number of jobs located in Georgia and the diversification of the Georgia economy, I would expect the growth rate of Georgia’s P/C marketplace, as measured by direct premium written, to exceed the growth rate experienced on a countrywide basis.

Joseph L. Petrelli is president and founder of Demotech, Inc. Demotech, Inc. is a Columbus, Ohio-based financial analysis and
actuarial services firm. Petrelli is a member of the Casualty Actuarial Society, American Academy of Actuaries and the Conference of
Actuaries in Public Practice. Additional information can be found at
www.demotech.com.

Topics Georgia Property Casualty