NAIC Releases 2021 Profitability Report
The
The ability to analyze results by state and line of business enhances transparency on the financial impact the economic climate has had on each of these lines. When combined with other information, the report can be utilized in further analysis of competition and market performance.
The Report on Profitability By Line By State in 2021 includes aggregate data from annual statement exhibits to develop estimates of profits on earned premium and the return on net worth by line and by state.
Key highlights from the report include:
* Total premiums earned increased in 2021 for the 12th consecutive year, while losses incurred and loss adjustment expenses remained relatively flat.
* The countrywide direct return on net worth for the total property and casualty insurance market was 6.5% for 2021.
* Private Passenger Auto (PPA) makes up a large portion of the property and casualty market, accounting for approximately 34% of the total direct premiums earned in 2021.
* The return for PPA decreased from the prior year, moving from 10.5% in 2020 to 4.2% in 2021, with the 10-year average being 4.9%.
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. As fluctuations in calendar year financial results occur, long-term historical averages are also provided.
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REPORT: https://content.naic.org/sites/default/files/publication-pbl-pb-profitability-line-state.pdf
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Original text here: https://content.naic.org/article/naic-releases-2021-profitability-report
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