NAIC Releases 2017 Profitability Report

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

It includes aggregate data from annual statement exhibits to develop estimates of the profits on earned premium and the return on net worth by line and by state.

The findings below are based on countrywide direct numbers.

  • The total premium earned for property and casualty lines of business increased by more than $25 billion from 2016 to 2017. While the following lines of business had a decrease in the premiums earned: fire, medical professional liability, workers’ compensation and financial guaranty.
  • Total personal auto losses were down this year for the first time since 2013, but they were still above the 10-year average.
  • Total commercial auto losses continued in an upward trend, rising for the fourth consecutive year after a slight dip in 2013.
  • Homeowners losses increased by more than 40 percent from 2016 to 2017, well above the 10-year average. Losses in allied lines more than doubled from 2016 to 2017. Both lines of business are impacted by catastrophic events. Many of the states that experienced natural disasters in late 2016 and throughout 2017 have noticeably high losses in homeowners and/or allied lines.

The report also shows the various components of estimated profits including: premiums earned; losses incurred; loss adjustment expenses; 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.

About the NAIC

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. For more information, visit

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