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 5.1 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 6,200 independent agencies
(consisting of 37,000 agents).
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 more than 90% of revenues. The remainder comes from
premiums and income from the life insurance segment (life, health,
and annuity policies).
Auto-Owners operates more than 120 claims, underwriting, and
marketing offices in its 26-state service territory. The company's
largest markets are Florida and Michigan.
Rolling along after five years of increasing revenues,
Auto-Owners reported a 3% revenue increase, from $6.3 billion to
$6.5 billion, in 2015 as its premium earnings from
property/casualty grew. The company netted $813.3 million that
year, a 44% increase from 2014.
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 2016 the company completed a 12,000-sq.-ft. addition to its
headquarters facility. It has also been renovating regional and
claims branches to upgrade operations.
Mergers and Acquisitions
In late 2015, Auto-Owners Insurance acquired excess and surplus
(E&S) insurer Atlantic Casualty Insurance Company in a move
that allowed it to enter the E&S market. Atlantic Casualty
operates in 48 states, offering E&S coverage for commercial
general liability, property, inland marine, commercial automobile,
package, and boiler and machinery.