NCCI Publishes Workers Compensation Financial Results Update

Posted Date: November 10, 2015
    

At its Annual Issues Symposium (AIS) held in May 2015, NCCI presented The State of the Line—a comprehensive report of financial results for the workers compensation line of business. The results presented at AIS reflected the most up-to-date data available at the time, including NCCI’s preliminary estimates for Calendar Year 2014.

In this report, NCCI provides updated results for 2013 and 2014, as well as preliminary estimates for Calendar Year 2015. Among the findings:

  • At AIS 2015, NCCI reported favorable industry results for Calendar Year 2014 in its State of the Line report, based on countrywide statutory data available as of April 16, 2015. This report highlighted the 2014 results, which showed the first underwriting gain for the workers compensation industry since 2006. For Calendar Year 2014, NCCI initially estimated workers compensation premium volume net of reinsurance to be $38.5 billion for private carriers, along with a combined ratio of 98. The updated data reported by the industry indicates no change to these preliminary estimates.

  • Updated results for 2014 show a lower investment gain on insurance transactions compared to the preliminary values shared at AIS. The investment gain is generally declining between 2010 and 2014, with a significant decrease in the latest year. The lower investment gain in 2014 is more than offset by the improved combined ratio, resulting in a higher workers compensation operating gain.

  • NCCI has also evaluated the data reported as of midyear 2015 to provide full-year estimates for written premium volume and the combined ratio. While still early and subject to revision, NCCI’s analysis suggests another increase in written premium volume, as well as continued improvement in the combined ratio.