There's more to Auto-Owners Insurance than the name implies. In
addition to auto coverage, the company provides a range of personal
and commercial property/casualty and life insurance products to
some 4.8 million policyholders. Offerings include auto, home,
liability, and workers' compensation policies. Operating
subsidiaries include Auto-Owners Life Insurance, Home-Owners
Insurance, and Property-Owners Insurance. Its Southern-Owners
Insurance subsidiary offers property/casualty insurance in Florida.
Established in 1916, the company operates in 26 states nationwide
and is represented by more than 6,000 independent
agencies (consisting of 37,000 agents).
Auto-Owners operates about 120 claims, underwriting, and
marketing offices in its 26-state service territory. The
company's largest markets are Florida and Michigan.
Auto-Owners' revenues come from insurance premiums, as well
as investment income. The company's
property/casualty business, which primarily sells personal
auto, home, and property policies, accounts for about 90%
of revenues. The remainder comes from premiums and income from
the life insurance segment (life, health, and annuity
Auto-Owners reported a 5% increase in net written premiums in
2012 to more than $5.1 billion, primarily due to growth within the
Auto-Owners Insurance, Auto-Owners Life, and Home-Owners
Insurance divisions. Total revenues increased 1% as well to a
little over $5.7 billion (due to higher premium earnings from
property/casualty offerings). The company has reported steadily
increasing revenues over the last five years. Net income jumped to
$436 million in 2012, following a sharp dip in profits to some $69
million in 2011.
Auto-Owners is focused on growing its business by establishing
strong relationships with independent agents and by diversifying
its product offerings. The company has also
expanded by adding sales and service facilities in
new and existing markets. In 2012 Auto-Owners opened three new
branch locations to handle claims in Marion, Indiana; Charlotte,
North Carolina; and New Albany, Ohio. The company also replaced
existing branch offices with newly constructed or renovated spaces
in Tallahassee, Florida, and Lansing, Michigan.
New construction in 2011 included five new branches, two
replacement branches, and a backup data center in Traverse City,