Which insurers might pay for the tornado damage in Nashville?

Columbus, Ohio, March 5, 2020: In the early hours of Tuesday morning, tornadoes in Nashville took at least two dozen lives and destroyed homes and businesses across four counties. Initial estimates put the damage to the airport alone at nearly $100 million. Will this tragedy cause distress to any insurers writing homeowners or commercial multi-peril in Tennessee?

“Carriers writing homeowners or commercial multi-peril insurance are paid to step up when tornadoes strike. Our review of the top twenty-five insurers in Tennessee writing each line of insurance leads Demotech to believe that meritorious claims associated with the damage and destruction to homes and buildings will be settled professional and promptly,” says Joseph L. Petrelli, President, Demotech. Inc. “We extend our condolences to the families and friends of those who lost their lives on March 3rd.”

In 2018, companies wrote $2.1 billion of homeowners direct premium in Tennessee and $509 million of commercial multi-peril (non-liability) direct premium in Tennessee. Using data reported to the NAIC and collected from SPGlobal, the top 25 writers of homeowners and commercial multi-peril (non-liability) in the state of Tennessee for year-end 2018 are listed below.

2018 Tennessee Homeowners DPW

Company                                                                                            ($000 omitted)

  1. State Farm Fire and Casualty Company                                              500,004
  2. Tennessee Farmers Mutual Insurance Company                                            409,915
  3. Liberty Insurance Corporation                                                                        75,795
  4. Erie Insurance Company                                                                                73,741
  5. Allstate Vehicle and Property Insurance Company                                        67,321
  6. United Services Automobile Association                                                       65,633
  7. Safeco Insurance Company of America                                                         57,319
  8. Travelers Personal Security Insurance Company                                           44,134
  9. Auto-Owners Insurance Company                                                                 43,899
  10. USAA Casualty Insurance Company                                                             37,399
  11. Allstate Insurance Company                                                                           28,203
  12. Farmers Insurance Exchange                                                                          27,882
  13. American Strategic Insurance Corp.                                                              25,891
  14. Truck Insurance Exchange                                                                             25,024
  15. Shelter Mutual Insurance Company                                                               24,642
  16. Allstate Property and Casualty Insurance Company                                      24,402
  17. Cincinnati Insurance Company                                                                      23,124
  18. Metropolitan Property and Casualty Insurance Company                              22,911
  19. USAA General Indemnity Company                                                              22,470
  20. Allstate Indemnity Company                                                                          21,115
  21. American Bankers Insurance Company of Florida                                        20,149
  22. Nationwide Property & Casualty Insurance Company                                  18,243
  23. Standard Fire Insurance Company                                                                 16,413
  24. Foremost Insurance Company Grand Rapids, Michigan                                16,188
  25. Nationwide General Insurance Company                                                       15,930

2018 Tennessee Commercial Multi-Peril (non-liability) DPW

Company                                                                                                       ($000 omitted)

  1. Erie Insurance Exchange                                                                                37,016
  2. Cincinnati Insurance Company                                                                      27,277
  3. State Farm Fire and Casualty Company                                                         21,769
  4. Owners Insurance Company                                                                           18,758
  5. Philadelphia Indemnity Insurance Company                                                  12,640
  6. Tennessee Farmers Mutual Insurance Company                                            12,589
  7. Auto-Owners Insurance Company                                                                 11,456
  8. Westfield Insurance Company                                                                       11,385
  9. Brotherhood Mutual Insurance Company                                                      11,161
  10. Church Mutual Insurance Company S.I.                                                        9,788
  11. Federal Insurance Company                                                                           9,559
  12. Hartford Fire Insurance Company                                                                  9,017
  13. ACE American Insurance Company                                                              8,857
  14. Ohio Security Insurance Company                                                                 8,413
  15. Grange Insurance Company                                                                           7,712
  16. Allstate Indemnity Company                                                                          7,282
  17. Charter Oak Fire Insurance Company                                                            6,622
  18. Sentinel Insurance Company, Ltd.                                                                 6,544
  19. Nationwide Mutual Insurance Company                                                         6,532
  20. Mid-Century Insurance Company                                                                  6,444
  21. State Auto Property & Casualty Insurance Company                                         6,319
  22. Travelers Property Casualty Company of America                                        6,123
  23. Berkshire Hathaway Homestate Insurance Company                                         5,769
  24. Hanover American Insurance Company                                                        5,703
  25. Twin City Fire Insurance Company                                                               5,146

About Demotech, Inc.

Demotech, Inc. is a financial analysis firm specializing in evaluating the financial stability of regional and specialty insurers.  Since 1985, Demotech has served the insurance industry by assigning accurate, reliable, and proven Financial Stability Ratings® (FSRs) for Property & Casualty insurers and Title underwriters.  FSRs are a leading indicator of financial stability, providing an objective baseline of the future solvency of an insurer.  Demotech’s philosophy is to review and evaluate insurers based on their area of focus and execution of their business model rather than solely on financial size.  Visit www.demotech.com for more information.