The Guest Speaker at the 2004 Spring Dinner was L. Tim Wagner, Director of the Nebraska Department of Insurance.  Over the past several years, Mr. Wagner has seen several companies domicile in Nebraska as well as many locations grow in size and merge.  There are some significant reasons for this.  Our workforce has a strong educational background, lack of dialects, central location and the 'midwest work ethic', all of which are very attractive to insurance companies.  Our governments try to encourage growth because the insurance industry provides good jobs and benefits without any environmental damage that manufacturing industries can create.  Our communities enjoy the benefits of annual wages that exceed the state average by $10,000.

Here are some other interesting statistics:  there are 30,000 insurance related jobs in Nebraska, which accounts for 3.9% of the workforce (Connecticut is the only state with higher); $24 billion of insurance was written by Nebraska companies in 2002; despite a 5.9% yield, there was 15.8% growth; net income for insurance companies in Nebraska was $30 billion in 2003; nationally, $589 billion of insurance was written and life companies had $2.5 trillion in assets;  Nebraska ranks 4^th nationwide in capital and surplus (behind NY, CT and IL), and 14^th in assets with $134 billion. 

With all this working for us, Nebraska is attracting new players.  Mergers of companies like United American in Indiana and Guarantee Mutual Life create a staying power.  Well known companies like Afflac see many economic advantages of working in Nebraska.  For example, California has a premium tax of 2.5%, Nebraska has 1%.  They considered three other states before starting business in Omaha with 100 jobs.  Principle opened an office in Grand Island in 1982 with 10 people, now they have 600.  State Farm brought hundreds of jobs to Lincoln when their regional office reorganized.  Last year West Coast Life (part of Protective Life) opened an office with 10 jobs in Nebraska, now they have 25 with hope for 35 by year end.  Pacific Life has recently committed to locating 250 new jobs here and $67 billion in assets.  Nationally significant companies are establishing here and growing.

There is also a statutory framework which has helped the growth of the insurance industry in Nebraska.  The Nebraska Life Insurance Bill 10-47 (also known as the Pac Life Bill), allows the grandfathering of assets.  Pac Life's assets were admitted in California but not in Nebraska.  As they redomiciled to Nebraska, this bill grandfathered their assets here.  Merging mutual holding companies was not allowed in Nebraska, but this legislation changed that too.  Nebraska is amending our bankruptcy code so that many products could be considered insurance for liquidation purposes.  We are admitting construction loans as assets.  Life companies can engage in funding companies now.  Legislative packages can be created, introduced and passed within a month.

With all these reasons for doing business in Nebraska, cream of the crop companies are moving, staying and growing here.