It’s not that simple. It is a regulated industry that has to keep sufficient reserves for potential losses based on market share. Then there is a thing called reinsurance, the effect interest rates have on capacity, and trying to predict mother nature.

Without risk pooling, an individual would never be able to afford insurance for themselves based on their own risk factors.

Each company uses their own replacement cost estimator based on the sq ft of the house. Land is not included.

State Farm lost 13 billion in 2022 and 14 billion in 2023. In 2022, USAA lost money for the 1st time in its 100 year old history - 1.3 billion. Haven't seen their 2023 report, but it is likely to be better. I could go on. I saw a recent list of the top twenty auto insurance companies and it revealed one, Progressive as the profit leader with less than a 2% profit (from memory), which is big for an insurance company. I beleve it was GEICO, who made an eeny weenie tiny profit and then the other 18 - all lost substantially. Increased rates will end up reversing this trend at some point.

HCI is a relatively new insurance company feeding of the skeleton which is is all that is left of the Florida home insurance market. They are providing coverage when others won't and likely get to charge out more just for offering market capacity. No hurricanes for them last year - we'll see what happens. Life is good when the skies are sunny. Any way you look at it, they an extremly poor example of what is happening here in Texas.

Insurance companies don't lose money, the pay out more than than they got paid but only over a period of time. They still have all the money. They will always come out on top. No difference in insurance and a casino. I have "loses" every day between paychecks but then I get paid again so my net is positive.

Isn't this the way all firms actually can afford to operate?

You guys are professionals and I’m not. Being the CEO or shareholder of an insurance company is great when there are no disasters. It’s like being a farmer when there are good rains with no hail storms. However I’m the guy that has been insuring my home(s) for 60 years without a claim but, due to RISK and inflation, my premiums have always increased. As I recall the premium/loss ratio is called experience.

We, native Texans, are paying a lot of money(premiums) due to inflation and also demand due to migration from all directions. The chance of me filing a claim is greater due to more cars on the road and more migrants coming from all directions.

My premiums and other expenses would decrease if they built the wall around the entire State and if the
Congressional budget were published in advance so ‘we the people’ could analyze it and ask hard questions.

Truth, but good luck with that.

Solvent ones, yes. But insurance companies are more than solvent, they are affluent like casinos and all because of fear and politics.

Ever notice most local brokers are also local politicians? How many State Farm agents have you known to be mayor or school board president? The answer is "usually"...

Hudbone you make this so easy. Have you heard of Liberty Mutual??? Lets do them for a Wednesday truther, please verify!!


Circled is net income. 2021 net income after expenses $3,070,000,000 2022 net income $419,000,000 2023 $228,000,000 So tell me how you can justify picking out a couple years with horrible hurricanes explode premiums and run around saying you lost money!! You want me to list the 10 years there was no hurricane and the billions made!!! Americans are forced to buy insurance and get BS lies from the companiee that sell to them.

I listed three companies with known heavy losses and you cherry pick one. OK

USAA has an income problem since 2020, via the inability to add new subscribers . When home prices sky rocketed, their core demographics got priced out. Wage inflation is crushing same demographics also. Thats per USAA. Selling their financial planning off wasn't smart either

They are dumping US based employment right now. Lots of stuff is going to Mexico and Oversees. I give them 8-10 years tops before they go under, Its very somber work environment

There will always be well ran companies and terriblely ran companies. USAA will go down as an exceptional company that screwed the pooch with bad management choices.

Plain & simple and from the Google -

"How much did insurance companies lose in 2023? $32.2 billion

US P/C Industry Turns in $32.2B Underwriting Loss After 9 Months. U.S. property/casualty underwriting results deteriorated during the first nine months of 2023 to a loss of $32.2 billion. The result, highlighted in short financial review from AM Best, is $7.6 billion worse than the same period a year ago.Dec 18, 2023"

For those than can figure it out, subtact $7.6 billion form the 2023 loss to come up with what was lost in the first three quarters of 2022. Most would say that is not a positive trend.

Underwriting losses, okay, how about profits from investments in stocks and properties from the premium payments. From what I understand, the insurance companies have refused to provide that information to the US Congress. An economics professor was the source of that information, is that true?

What other institution is judged by the cheese they make off their milk?

Without positive cash flows, all goes to heck.

Ace Hardware just reported a loss on the sale of nuts and bolts but investments made money. They will continue to operate their core business at a loss so they can concentrate on investment income.

Said no one ever.

Right they cherry pick numbers to justify their existsnce and ubsurd price increases!! Remember the post that progressive does not count because they are an efficient company!!!! I didnt post them because I did not cherry pick!!

Progressive is succeeding. No doubt there. That is one company who may have it figured it out. Who really knows? Just remember, their business model is taking new customers the others don’t want. Maybe they’ll do better with those people.

One company is not the solution to what is taking place.

Not shocking that you argue with slander instead of facts. I picked two carriers randomly that are on your website that you sell as a professional. I am nit googling anything other than the company annual report!!! Lets take Safeco and Travelers for $100 Alex!!!

I am slanderous? Really? You are going there. Me, David Huddleston, is slanderous?

A business that people are forced to pay premiums to, to get a loan on a home or a vehicle should. The other aspect is that they only report the loses to regulators who are trying to oversee the rates. Report the cheese and see what happens.

https://www.spglobal.com/marketinte...s-insurance-rate-hikes-in-q3-23-78123059

I no longer feel worthy. That isn't why I got on this forum. I do have a true passion for the outdoors and used THF like Sidhaartha who let his troubles flow down the stream. Have helped many on here now insuring thousands of acres and many multiples of residences from people who pretty much reached out to me. Others have sought my advice which I freely gave trying to help them with no (zero) financial gain to myself. Always asked them to keep the mojo going and to pass it along. Come on here and speak honestly with what all that is going on and then some guy who runs a fab shop and seems to know more about my business than myself comes out and calls me a liar. Many things have been and can be said about myself, but never before have I heard I am a liar.

Beginning to understand the reasoning why one the most notable and knowledgable deer gurus no longer particpates here.

I have nothing against you David, just stating facts about the industry. I have never heard a bad thing about you personally. With that being said I do not care for the Insurance Industry and the methods used to raise premiums. I have friends with young families and they are literally burning candles trying to survive while paying over $20,000 per year in premiums with high deductibles , while their home insurance has doubled in the past three years. And I 100% believe insurance corporations take advantage of a disaster !! By the way I dont even know what a fab shop is!! 😂😂😂 But I do my research before poosting

I have zero doubt you're a good person, knowledgeable about insurance sales, coverage, claims ect ect and would I never call you a liar. I do believe though that the top management levels of most of the insurance companies should be more (I hate to say it because I hate the term but "Transparent" about their profits) If people weren't required to have it, I wouldn't care one bit though.

I get to deal with it every day. Crap sandwhich from beginning to end. Don't like it but get to deal with it. It's like the movie Groundhog Day. 80 year old ladies crying in my office. Soaking up the disposable income of people with few alternatives. We've built our business trying to help people, but these days helping people means to see who can make one bleed the least. Your comments about past profits and passive income are ridiculous. No one accepts losing income so they can invest money. Bet you don't run your business that way. It's a fool's bet and insurance companies are not fools.

I take a man for what he does and says. If you can honestly come out and say you have no issues with me, but question my integrity, you need counseling. Don't worry about me. When I next need advice on insurance matters, I now know whom to consult.

An assertion Ramsey made about our website got my attention. He referenced our afilliation with Liberty Mutual. We do not have an apointment with Liberty Mutual, but are in the process of considering one. We do have an appointment with a subsidiary of Liberty Mutual. We do access home & auto insurance through them which does account for about 1/20th of our annual revenues.

Progressive allows us to write auto insurance, RVs, boats and such, but no homes. They account for about 1/15th of our gross revenues.

His "cherry picking" of these two companies does not provide suffiient detail as to what is taking place within the insurance industry here in TX. What is going on is real. Re-insurance costs have been rising and surplus volumes are generally in decline. Hochheim Prairie, Encompass, Germania and others are, at this time, no longer allowing for ANY new submissions - none. I guess Kemper is tired of making all that investment income as they are in the process of non-renewing every single cotton picking one of their preferred home & auto policies. Submitting new personal lines insurance has become a crap shoot - seeing many more declinations than offers of acceptance. Prices going up everywhere. Companies are utilizing stringent renewal underwiting regimens while throwing babies out with the bath water. Higher deductibles are being forced upon clients. What's worse is some of the "buzzards" moving in to feed on the carcass of the insurance industry and offering crap policies. People are unwittingly accepting less coverage as they attempt to triage premium increases.

Note to Ramsey, if these companies were truly profitable, you would think they would be more aggressive with the pursuit of new revenues so they could make more of that there coveted investment income. Maybe you should be running one of them. Think of all the money to be made.