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You are here: Home / Latest News / NAIC Publishes Annual Profitability Report by Line by State Report

NAIC Publishes Annual Profitability Report by Line by State Report

February 1, 2022 by AC Editor


The National Association of Insurance Commissioners has released its annual report highlighting the various profitability levels in the Property & Casualty industry by both line of insurance and state.

How the NAIC compiles its data

Compiled and published each year, the Report on Profitability By Line By State in 2020 the report aggregates various data from annual statements in order “…to develop estimates of profits on earned premium and the return on net worth by line and by state.’ In addition, the report includes 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.

Key highlights from this year’s report:

The NAIC highlighted the following data reports from this year’s report:

  • Total premiums earned increased in 2020, for the 11th 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 decreased two percentage points to 6.6%.
  • Private Passenger Auto (PPA) makes up a large portion of the Property & Casualty market, accounting for approximately 36% of the total direct premiums earned in 2020.
  • The return for PPA increased over the prior year moving from 7.2% in 2019 to 10.5% in 2020.
  • For the past 5 years, losses and loss adjustment expenses accounted for over 70% of direct premiums earned countrywide for all property and casualty lines combined. During that same time, combined expenses accounted for approximately 26% of direct premiums earned.

Select Data from the Profitability Report

Please note the following is only select data that we have chosen from this year’s report and which we thought would be of most interest to our readers. The report, however, contains much more detailed data on each state’s profitability by line. As always, please refer to the full report (which can be accessed below) if planning to rely on any of the data presented below.

Percent of Direct Premiums Earned Countrywide – Direct and Net Premiums Earned Countrywide – IEE


Line of BusinessDirect
Premiums
Earned
(000s)
Net
Premiums
Earned
(000s)
Private Passenger Auto Total250,613,225244,005,296
Commercial Auto Total44,803,94538,789,577
Homeowners Multiple Peril106,998,36794,582,613
Farmowners Multiple Peril4,656,8414,354,757
Commercial Multiple Peril45,066,65739,739,879
Fire14,975,79012,606,970
Allied Lines29,985,49919,506,577
Inland Marine25,034,936 14,628,520
Medical Professional Liability9,959,6148,868,023
Other Liability79,793,19065,393,050
Products Liability4,070,6093,166,134
Workers Compensation50,937,00544,476,487
Mortgage Guaranty6,280,6885,223,280
Financial Guaranty*438,107463,552
Accident and Health6,324,3029,489,002
Warranty2,845,9101,209,770
All Other22,658,71139,048,319
Total All Lines705,443,396645,551,806

Profitability by Line of Insurance in Massachusetts

Line of BusinessDirect
Premiums
Earned
(000s)
Losses
Incurred
Under-Writing
Profit
Earned
Prem
To Net
Worth
Private Passenger Auto Total5,426,75349.214.491.6
Commercial Auto Total986,04946.817.668.1
Homeowners Multiple Peril2,617,91636.126.492.9
Farmowners Multiple Peril4,1187.654.584.4
Commercial Multiple Peril1,344,55237.0 18.369.2
Fire335,56242.4 24.295.0
Allied Lines382,21587.7(17.8)85.9
Inland Marine555,28153.215.7113.5
Medical Professional Liability336,15658.6(5.2)37.2
Other Liability2,341,40255.45.846.5
Products Liability123,62125.736.733.1
Workers Compensation1,228,79159.41.039.5
Mortgage Guaranty143,63335.440.891.7
Financial Guaranty*4,295(17.5)(216.5)39.9
Accident and Health107,26184.8(15.0)35.9
Warranty18,29548.236.339.5
All Other512,57927.033.077.3
Total All Lines16,468,47947.914.568.5

Profitability by Line of Insurance in Connecticut

Line of BusinessDirect
Premiums
Earned
(000s)
Losses
Incurred
Under-Writing
Profit
Earned
Prem
To Net
Worth
Private Passenger Auto Total3,063,34456.87.384.3
Commercial Auto Total480,51558.34.764.5
Homeowners Multiple Peril1,591,39862.11.089.7
Farmowners Multiple Peril7,37765.1(7.2)90.4
Commercial Multiple Peril683,49451.14.263.5
Fire152,13467.00.088.9
Allied Lines215,48446.526.793.0
Inland Marine347,94950.718.8116.5
Medical Professional Liability220,04073.5(14.4)45.3
Other Liability1,198,17060.2(2.5)41.2
Products Liability52,8159.537.433.1
Workers Compensation695,03454.87.135.8
Mortgage Guaranty80,28657.618.090.7
Financial Guaranty*2,675(6.1)(0.8)30.4
Accident and Health60,35363.78.730.8
Warranty9,36049.136.836.5
All Other267,48444.617.270.3
Total All Lines9,127,91057.25.464.6

Profitability by Line of Insurance in Maine

Line of BusinessDirect
Premiums
Earned
(000s)
Losses
Incurred
Under-Writing
Profit
Earned
Prem
To Net
Worth
Private Passenger Auto Total779,13854.310.896.4
Commercial Auto Total172,20448.916.575.9
Homeowners Multiple Peril459,95337.127.094.0
Farmowners Multiple Peril5,96120.542.491.8
Commercial Multiple Peril263,24141.214.875.6
Fire49,27917.753.196.2
Allied Lines64,98133.842.3107.2
Inland Marine87,486102.7(37.3)107.7
Medical Professional Liability47,39251.51.944.6
Other Liability201,46332.732.850.2
Products Liability8,9559.056.144.0
Workers Compensation230,67363.4(9.5)40.9
Mortgage Guaranty21,64032.943.692.8
Financial Guaranty*2750.07.925.7
Accident and Health13,91169.52.321.4
Warranty4,07154.630.741.3
All Other85,661428.2(393.8)79.7
Total All Lines2,496,28461.30.974.0

Profitability by Line of Insurance in New Hampshire

Line of BusinessDirect
Premiums
Earned
(000s)
Losses
Incurred
Under-Writing
Profit
Earned
Prem
To Net
Worth
Private Passenger Auto Total902,57747.718.897.0
Commercial Auto Total162,49643.422.470.5
Homeowners Multiple Peril445,24736.729.093.2
Farmowners Multiple Peril3,3076.358.895.7
Commercial Multiple Peril264,49939.417.472.4
Fire42,24437.134.793.3
Allied Lines45,4888.762.7101.5
Inland Marine99,95158.59.7118.6
Medical Professional Liability51,70893.2(50.8)38.9
Other Liability232,18228.733.347.5
Products Liability11,246(4.9)75.937.2
Workers Compensation205,55145.716.335.5
Mortgage Guaranty35,64522.854.4111.4
Financial Guaranty*1810.015.611.5
Accident and Health17,01088.0(22.5)28.8
Warranty6,12140.444.239.7
All Other72,81141.215.880.7
Total All Lines2,598,26442.721.572.0

Profitability by Line of Insurance in Rhode Island

Line of BusinessDirect
Premiums
Earned
(000s)
Losses
Incurred
Under-Writing
Profit
Earned
Prem
To Net
Worth
Private Passenger Auto Total996,71154.811.490.0
Commercial Auto Total133,00342.223.168.3
Homeowners Multiple Peril449,73947.817.493.4
Farmowners Multiple Peril45125.640.2103.3
Commercial Multiple Peril178,59441.714.064.8
Fire46,09136.033.886.6
Allied Lines72,08726.347.694.6
Inland Marine81,397104.9(43.8)95.8
Medical Professional Liability31,47474.1(29.9)27.7
Other Liability279,45565.8(4.8)42.4
Products Liability10,81150.2(16.8)29.4
Workers Compensation213,15143.710.550.6
Mortgage Guaranty21,23832.643.789.8
Financial Guaranty*6050.012.79.0
Accident and Health30,04948.929.381.8
Warranty2,16152.832.745.3
All Other104,44650.19.668.3
Total All Lines2,651,46152.510.971.1

Profitability by Line of Insurance in Vermont

Line of BusinessDirect
Premiums
Earned
(000s)
Losses
Incurred
Under-Writing
Profit
Earned
Prem
To Net
Worth
Private Passenger Auto Total386,53544.322.1100.4
Commercial Auto Total81,94942.923.276.5
Homeowners Multiple Peril215,00932.032.893.6
Farmowners Multiple Peril15,75649.612.394.4
Commercial Multiple Peril144,36029.030.175.5
Fire33,66542.735.298.4
Allied Lines25,84649.227.697.8
Inland Marine46,83952.515.8116.1
Medical Professional Liability17,31779.8(43.9)37.0
Other Liability117,44384.9(31.2)45.6
Products Liability7,03223.619.435.7
Workers Compensation169,90347.017.645.5
Mortgage Guaranty12,48728.648.0113.2
Financial Guaranty*430.015.65.2
Accident and Health13,98799.5(27.4)39.3
Warranty6,34433.644.233.0
All Other194,89415.563.5132.5
Total All Lines1,489,40841.724.376.7

How to access the full report

The NAIC has made this report available for free on its website. For those interested in accessing it, please access the NAIC website.

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