According to Hoovers First Research, the U.S. finance and insurance sector consists of about 475,000 establishments with combined annual revenues of more than $3 trillion. Key growth drivers include an increase in business activity and consumer income. Insurance carriers account for about 45 percent of sector revenue, banks and credit unions for about 20 percent, and securities firms for 15 percent.
Scottsdale and the surrounding Greater Phoenix area have benefited in the recent past from a national trend to diversify the financial industry base from its traditional hub on the Eastern Seaboard. Companies moving into Scottsdale such as The Hartford, regional movements such as State Farm, as well as major Scottsdale expansions by such companies as Vanguard, Nautilus and Nationwide are all evidence of this trend.
The insurance and financial services sector has been established in Scottsdale since the 1970s when such major firms as Sentry Insurance and Scottsdale Insurance began their operations. In general, the sector offers higher value and higher paying activities than standard back office operations. Insurance and financial services industries have experienced strong growth in the region and the national projections for future growth in both employment and output are above average. In fact, Scottsdale has become known as the national center for the Excess & Surplus (E&S) insurance sector. Business Service companies are attracted to Scottsdale for a variety of reasons:
- An outstanding labor base with low relative cost of labor and a quality source of executive, administrative and managerial talent
- Strong dependability of energy supply with no major natural disasters
- Direct flight access for clients and corporate executives via the Scottsdale Airport, with seven day per week on-site U.S. Customs service
- Available corporate office space
- No corporate franchise tax
- Low workman’s comp & unemployment insurance costs
The City of Scottsdale is honored to be home to a number of significant financial firms, and attracts new ones regularly:
- The Hartford which moved part of its national operations to Scottsdale in 2016 is expecting to hire 200 employees in the short term.
- Nationwide Specialty Insurance benefits from the backing of one of the largest insurance and financial service providers in the United States, an A.M. Best rating of A+XV (superior), and a Standard & Poor’s “A” rating. It has recently expanded to 1,500 employees and has become the company’s southwest operational headquarters.
- Vanguard is an investment management firm with more than 2,500 employees in Scottsdale. It is one of the largest investment management companies in the world with over a trillion dollars of assets under management. A new trading floor was recently opened in Scottsdale.
- Nautilus Insurance is another E&S insurance specialist that has undergone expansion expended to double its workforce to 500 employees.
- Voya Funds Management (formerly ING) is another investment management company whose second national operation is in Scottsdale. It currently has 220 employees.
- APL Logistics which was split off in 2016 from American Presidents Line recently moved its 250 employees to Scottsdale. It clients include all the North American automobile manufacturers and has revenues of over 1 billion dollars.
|Scottsdale Insurance Company||Headquarters||1,800||Fire, marine, and casualty insurance|
|Quicken Loans||Branch||850||Online Loans|
|PayPal||Branch||350||Online payment systems|
|Nautilus Insurance||Headquarters||220||Fire, Marine, and casualty insurance|
|Troon Golf||Headquarters||135||Management services|
|CNA National Warranty Corporation||Single Location||115||Insurance agents|
|Sagicor Life Insurance Company||Headquarters||100||Life insurance|
|On Q Financial, Inc.||Single Location||100||Investment advice|
Source: Hoovers.com, July 2016 and MAG 2015 Employer Database
It’s important to know Vanguard has been here for more than 17 years now and has a strong commitment to the area. With the additional building opening here, it will hold upward of 700 people. Our presence in Scottsdale continues to grow.Deborah Akinsipe, Vanguard’s director of human resources in Arizona