Skip to main content
Resource Center


For more information, please visit our Resource Center.

WASHINGTON (Dec. 21, 2021)

NAIC Releases 2020 Profitability Report

Report contains key ratios on profitability results for the property and casualty insurance industry on a countrywide and state basis.

The National Association of Insurance Commissioners (NAIC) today released the Report on Profitability By Line By State in 2020. The report estimates and allocates profitability in property/casualty insurance by state and line of insurance.

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 2020 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.

Some key highlights from the report include:

  • 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.

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.

The complete report is available on the NAIC publications page.

About the National Association of Insurance Commissioners

As part of our state-based system of insurance regulation in the United States, the National Association of Insurance Commissioners (NAIC) provides expertise, data, and analysis for insurance commissioners to effectively regulate the industry and protect consumers. The U.S. standard-setting organization is governed by the chief insurance regulators from the 50 states, the District of Columbia and five U.S. territories. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer reviews, and coordinate regulatory oversight. NAIC staff supports these efforts and represents the collective views of state regulators domestically and internationally.