2018 Profitability Report image

NAIC Releases 2018 Profitability Report

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

WASHINGTON (Dec. 30, 2019) —The National Association of Insurance Commissioners (NAIC) today released the Report on Profitability by Line by State in 2018. The report estimates and allocates profitability in property/casualty insurance by state and by 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 2018 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:

  • Higher than average losses occurred in 2018 in multiple lines of business including commercial auto, homeowners multiple peril, commercial multiple peril, fire, medical professional liability and products liability.
  • Return on net worth for homeowners multiple peril was negative for the second consecutive year whereas private passenger auto had a higher than average return on net worth in 2018.
  • Mortgage guaranty and financial guaranty, which are relatively volatile lines of business, had lower than average losses and higher than average returns on net worth in 2018.
  • Direct premium earned increased by 5.2% to $656 billion in 2018 for all property and casualty lines of business.
  • The return on net worth for the total property casualty market increased 3.4 percentage points from 2017, reaching 7.3% in 2018 based on direct figures.

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 through NAIC Publications.


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

Related Content