How the property-casualty insurance industry supports state and local government and the Maine economy

The insurance industry is a major investor in Maine’s economic and community development.

Employment and income:
Property-casualty insurers directly employed over 1,300 people in Maine in 2008.
This employment brought $82.2 million of payroll income into the state and local
economies of Maine.

Taxes: Insurance companies operating in Maine pay a wide range of state and local
taxes. State premium taxes alone totaled over $90.2 million in 2008.

Investing in state and local government:
Property-casualty insurers are a major source of capital for state and
local government in Maine. According to analysis of A.M. Best data,
they held $1.1 billion in Maine municipal bonds in 2008 –
approximately 14% of the outstanding state and local government
debt in recent years. Insurers invest in a variety of public projects,
including education, housing, and pollution control. Insurers also
purchase general obligation bonds that finance ongoing government
operations.

Reimbursement for insured losses:
The property-casualty insurance industry pays substantial amounts to
reimburse Maine residents for accidents, illnesses, and other personal
and commercial insured losses. According to A.M. Best, in 2008, insurers
paid out $340.4 million for losses covered by residents’ automobile
insurance, $171.5 million for losses covered by homeowners insurance,
and $455.3 million for commercial losses, a total of $967.2 million
personal and commercial property-casualty losses.

— Courtesy of American Insurance Association.


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