NAIC Releases 2016 Profitability Report

Dec 18, 2017

 

The National Association of Insurance Commissioners (“NAIC”) released its Report on Profitability by Line by State in 2016 today, December 18, 2017.

The report estimates and allocates profitability in property and casualty insurance by state and by line of insurance.  The ability to analyze results on a “by-state-by-line” basis enhances transparency on the financial impact the economic climate has had on each of these lines, the NAIC noted.

When combined with other information, the report can be utilized in further analysis of competition and market performance, the NAIC added.

The Report on Profitability By Line By State in 2016 pools calendar year data from exhibits of the annual statement to develop estimates of profits on earned premium and the return on net worth by line and by state.

The report also shows the various components of estimated profits including: premiums earned; losses incurred; loss adjustment expense; general expenses; selling expenses; state taxes, licenses and fees; dividends to policyholders; changes in premium deficiency reserves; underwriting profits; investment income and federal income taxes.

Inasmuch as fluctuations in calendar year financial results occur, long-term historical averages are also provided, the NAIC said.

The complete report is available by clicking here.  

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