Boca Raton, FL – NCCI recently announced the release of its latest Financial Update newsletter, which offers the latest financial results for the workers compensation industry.
Among the findings:
- At this year’s Annual Issues Symposium (AIS) , NCCI estimated an industry wide combined ratio for 2012 of 109. Actual data reported by the industry indicates a Calendar Year 2012 combined ratio of 108.1. The nearly one-point improvement was due to a small improvement in the underlying loss ratio as well as a slight decline in the dividend ratio.
- NCCI’s preliminary estimate of the operating ratio was +5%, driven largely by a 14% investment gain ratio, which is higher than the historical average of 11.9% for Calendar Years 2001 to 2011. Final 2012 results revealed a +6.2% operating gain ratio as a result of the one-point improvement in the combined ratio and a 0.2% upward adjustment to the investment gain ratio.
- NCCI has also evaluated data reported for the first half of Calendar Year 2013 to provide full-year estimates for written premium and the combined ratio. While still early, and subject to revision, our analysis suggests a modest increase in premium volume and a continued decline in the combined ratio.
- At the same time, loss drivers such as frequency, severity, and wages show little cause to expect bigger year-end improvements in Calendar Year 2013 results.
To access the free report, click here: NCCI Financial Update Newsletter (PDF)