The sector for property-casualty insurance companies encompasses all companies licensed to write property or casualty insurance policies in the United States, excluding state funds that are established by states to provide workers' compensation coverage. Also excluded from the sector are captive insurers, which are not required to file financial statements with state regulators. Property-casualty firms provide many types of insurance, such as fire, group and other accident and health, homeowners, medical malpractice, workers' compensation, automobile liability and physical damage, aircraft, reinsurance, burglary and theft, earthquake, credit, mortgage guaranty, and international.
The major assets of the companies that make up the sector are fixed-income securities and equities. Holdings of debt securities, corporate equities, and mutual fund shares are recorded at market value. The companies' primary liabilities are amounts payable to policyholders for incurred losses, loss-adjustment expenses associated with those claims, and unearned premium reserves.