NAIC Releases 2022 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) has released the Report on Profitability by Line by State in 2022. 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 2022 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. Starting with the 2022 data year, the data within the report is broken out by mutual & reciprocal insurers and stock insurers.
Key highlights from the report include:
- Total premiums earned increased in 2022 for the 13th 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 from 6.5% in 2021 to 4.8% for 2022.
- Private Passenger Auto (PPA) makes up a large portion of the Property & Casualty market, accounting for approximately 33% of the total direct premiums earned in 2022.
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.