NAIC Releases 2019 Profitability Report

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

2019 Profitability Report image

WASHINGTON (Jan. 12, 2021) – The National Association of Insurance Commissioners (NAIC) today released the Report on Profitability By Line By State in 2019. 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 2019 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 over the nine years included in the report, while losses incurred, and loss adjustment expenses have remained relatively flat. 
  • The countrywide direct return on net worth for the total property and casualty insurance market increased for a second consecutive year to 8.6%.
  • Private Passenger Auto (PPA) makes up a large portion of the Property & Casualty market, accounting for approximately 37% of the total direct premiums earned in 2019.
  • The return for PPA decreased minimally over the prior year moving from 7.5% in 2018 to 7.15% in 2019.
  • In 2018 and 2019, losses and loss adjustment expenses accounted for over 70% of direct premiums earned countrywide for all property and casualty lines combined.

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.

The graphic below shows a 10-year history of various metrics contained in the report. Combined expense includes general and selling expenses in addition to taxes, licenses, and fees (column 4 + 5 + 6). Loss and LAE includes losses incurred and loss adjustment expenses incurred (column 2 + 3). Investment gain includes investment gain on insurance transactions and net worth less taxes on insurance transactions and net worth ((column 8A + 10) – (column 8B + 11)).


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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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