Calendar-Accident Year Underwriting Results Using Data Valued as of December 31, 2012 Table of Contents Introduction to Calendar-Accident Year Underwriting Results Types of Data and Dataa Elements Contained in the Calendar-Accident Year Underwriting Results Development Methodology Calendar-Accident Year Underwriting Resultss Based on Experiencee Valued as of December 31, 2012 Components of Expense Ratio for Calendar-Accident Year 2012 NCCI S "CALENDAR-ACCIDENT YEAR UNDERWRITING RESULTS" IS PROVIDED "AS IS". NCCI MAKES NO REPRESEN NTATIONS OR WARRANTIES OF ANY KIND RELATING TO THIS PRODUCT, INCLUDING ANY EXPRESS, STATUTORY OR IMPLIED WARRANTIES INCLUDING THE IMPLIED WARRANTY OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. ADDITIONALLY, NCCI DOES NOT ASSUME ANY RESPONSIBILITY FOR YOUR USE OF, AND FOR ANY AND ALL RESULTS DERIVED OR OBTAINED THROUGH THE USE OF "CALENDAR-ACCIDENT YEAR UNDERWRITING RESULTS". NO EMPLOYEE OR AGENT OF NCCI OR ITS AFFILIATES ARE AUTHORIZED TO MAKE ANY WARRANTIES OF ANY KIND REGARDING "CALENDAR-ACCIDENT YEAR UNDERWR ITING RESULTS". ANY AND ALL RESULTS, CONCLUSIONS, ANALYSIS OR DECISIONS DEVELOPE ED OR DERIVED FROM, ON ACCOUNT OF, OR THROUGH YOUR USE OF "CALENDAR-ACCIDENT YEAR UNDERWRITING RESULTS" ARE YOURS AND NCCI DOES NOT ENDORSE,, APPROVE OR OTHERWISE ACQUIESCE IN YOUR ACTIONS, RESULTS, ANALYSIS, OR DECISIONS, NOR SHALL NCCI HAVE ANY LIABILITY THERETO.
Introduction to Calendar-Accident Year Underwriting Results Workers compensation premiums are meant to provide funds to meet two expenditures: benefit costs and operating expenses of the benefitt system. Underwriting results are a measuree of the adequacy of premium funds to cover these expenditures. NCCI expresses the underwriting result as a ratio to net premium. The ratio is the difference between unity and the sum of the loss, expense, and dividend ratios to net premium. It represents the portion of the net premiumm that is left after benefit costs and operating expenses are paid. Negative underwritin g ratios indicate that the premiumm collected was not adequate to pay benefits (losses) and expenses. By definition, underwriting results do not reflect investment income. Underwriting results can be measured on a policy year, calendar year, or calendar- Underwriting Results and Policy Year Underwriting Results. This data excludes underground coal mine, F-classification, large deductible, national defense project, and accident year basis. Financial Call data is used in Calendar-Accident Year excess business. NCCI develops the losses reported by carriers to an estimated ultimate basis. Standard earned premiums at company level are provided, although these premiums are not used in the underwriting results. NCCI produces reports for the policy year and calendar-accident year methods as described below. Policy year experience reflects policies with an effective date occurring in that year from January 1 to December 31. This type of reporting requires that all premium and loss activity, whether payment or reserve adjustment, be applied to the policy year to which the policy effective date corresponds. Thee policy year experience (1993 2011) for the latest 19 reports is contained in Policy Year Underwriting Resultss valued as of December 31, 2012. The policy year results provide the most exact matching of premium and losses, but the latest policy year is older than the latest accident year. Calendar-accident year experience reflects premium transactions occurring in that year along with loss experience for claims with accident dates beginning January 1 and ending December 31 of that year. The mostt recent five years (2008 2012) are contained in Calendar-Accident Year Underwriting Results valued as of December 31, 2012. Calendar-accident year provides more recent results, but the premiums are not as perfectly matched to lossess since audits and retrospective rating adjustments on prior-year policies are reported in the year that they are made.
For Policy Year and Calendar-Accident Year Underwriting Results, in general, each state s losses are developed using a methodology consistent with the state s latest rate filing review. Because different methods are being used, an enclosed Development Methodology exhibit shows which methods are usedd to develop each state s losses. Since the underwriting resultss have not been adjusted to reflect recent rate, loss cost, trend or benefit changes, this informationn by itself does not necessarily indicate future potential results in a state. An insurer is not equired to use this information. The ultimate loss ratios are estimates that change each year as more claims are closed and reserve estimates are updated. Recommendations regarding ultimate historical losss ratios, as well as prospective loss ratios, are not made in this report. For questions related to this report, please contact Tom Sheppard at 561-893-3083.
Types of Data and Data Elements Contained in the Calendar-Accident Year Underwriti ng Results The Calendar-Accident Year Underwriting Results contains 38 states where NCCI collects financial data. Data for Arizona, Colorado, Hawaii, Idaho, Kentucky, Louisiana, Missouri, New Mexico, Oklahoma, Oregon, Rhode Island, Texas, and Utah includes the state fund. Data for the remaining states is for private carriers only. The components of Calendar-Accident Year Underwriting Results are defined below: Standard Earned Company Premium (Column 1) ) From the Calendar-Accident Year Call for Compensation Experience by state, standard earned premium epresents premium reported at the level of rates that the company actually charged the insured prior to the applicationn of adjustments such as retrospective rating plan adjustments, schedule rating, and premium discounts. Net Earned Premium (Column 2) From the Calendar-Accident Year Call for Compensation Experience by state, net (direct) earned premium is reported at company ratee level after the application of adjustments such as retrospective rating plan adjustments, schedule rating, and premiumm discounts. The net earned premium is the final amount paid by the insured. It is important to clarify that the net earned premium iss direct, that is, prior to reinsurance cessionss and assumptions. Indemnity and Medical Losses (Columns 3 and 4) From the Calendar-Accident Year Call for Compensation Experience by state, indemnity and medical lossess have been separately developed to an ultimate basiss using the methodology outlined in the enclosed Developmentt Methodology exhibit. The two methodologies included are paid, and paid plus case: Paid losses are losses that have been paid on given claims. Case reserves are estimates of the remaining amount required to settle particular claims based on the knowledge of those claims at a particular date. Case reserves, when added to the payments on open claims, doo not necessarily reflect the ultimate settlement amount since case reserves are based on knowledge at a particular point in time. The pattern by which losses ( paid, or paid plus case) for an accident period mature from an early reporting to the ultimate cost is referred to as loss development. Expense Ratio (Column 7) Direct defense and cost containment expense (or allocated loss adjustment expense), commission and brokerage expense, and taxes aree calculated by state using data derived from Statutory Page 14 data of the Annual Statement. Adjusting and other expenses (or unallocated losss adjustment expense) ), general expense, and other
acquisition expensee are derived from the Insurancee Expense Exhibit using private carrier countrywide data and state-specif fic state fund data. The expense ratio contains a provision for assessments in the tax component of the expense ratio. Therefore, no loss-based assessment adjustment has been applied to the losses. The presentation of the expense ratio (for Calendar-Accident Year 2012) with the five separatee components is shown following the underwriting results. The five components are: Direct Defensee and Cost Containment Expenses Includes defense, litigation, and medical cost containment expenses. Adjusting and Other Expenses Reflects the remaining costs associated with the settlement of claims, such as fees of claim adjusters. Commission and Brokerage Expenses Reflects fees paid by the insurer to agents and brokers who epresent the insured inn placing orders for coverage. Taxes, Licenses, and Fees Represents the insurer s legal obligation to pay premium taxes and various miscellaneous taxess and assessments that vary by state. Taxes are generally levied as percentages s of premium, and assessments can be levied as percentages of premium or losses. General and Other Expenses Reflects costs to the insurer of running internal operations (e.g., rent, salaries), general activitiess (e.g., administration, payroll, audits, boards and bureaus funding, and inspections) and other acquisition costss (e.g., advertising and premium collection expenses). Dividend Ratio (Column 8) The dividend ratio reflects dividends as a percentage of earned premium based on individual state information from Statutory Page 14 data of the Annual Statement for Calendar Years 2008 through 2012.
Development Methodology STATE Alabamaa Alaska Arizona Arkansas Colorado Connecticut District of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Mississippi Missouri Montanaa Nebraska Nevada New Hampshire New Mexico North Carolina Oklahoma Oregon Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia West Virginia METHOD Weighted Average: 25% Paidd and 75% Paid + Case to a 19th Paid + Case to a 19th Paid to a 19 th Paid + Case to a 19 th Paid + Case to a 19 th Averagee of Paid and Paid + Case to a 16th, Paid + Case 17th to 19th Paid to a 19 th Paid to a 19th Paid to a 19th Paid to a 19th Paid to an 12th for private carriers, Paid to a 19th for the state fund Paid to a 19th Paid to a 19th Paid to a 19th Paid + Case to a 19th Paid + Case to a 19th Averagee of Paid and Paid + Case to a 14th Paid to a 19th Paid + Case to a 19th Averagee of Paid and Paid + Case to a 10th
Development factors are based on a subset or combination of the data valued as of 12/31/2007, 12/31/ /2008, 12/31/2009, 12/ /31/2010, 12/31/2011,, and 12/31/2012. To be as consistent as possible with NCCI s filing process, each state s losses are developed using a methodology consistent with the state s latest rate review. In general, these calculations assume that a two- orr three-year average of link ratios as well as a particular 19th-to-ultimate loss development methodology is appropriate. Other assumptions may be made regarding loss development. Methodology Key For the purposes of this document, the developmen nt methodology refers to the basis of losses which are then developed to ultimate. Paid to a 19th Paid losses are used as the experience base from 1st through 19th. The paid losses are then developed to an ultimate report. Paid + Case to a 19th The sum of paid losses and case reserves is used as the experience base from 1st through 19th report. The sum of paid losses and case reservess is then developed to ultimate. Paid to an Nth and Paid + Case to 19th Paid losses are used as the experience base from 1st through Nth report. The paid losses are then developed to an ultimate report. The sum of paid lossess and case reserves are used as the experience base from (N+1)th through 19th. The sum of paid losses and case reserves is then developed to ultimate. Please note that some states use variations of the development methods described above.
Alabama Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 288,969,703 253,146,054 42,917,901 112,998,484 155,916,385 0.616 0.350 0.002 0.032 2011 (2nd Report) 308,241,990 250,353,224 51,210,991 134,316,225 185,527,216 0.741 0.417 0.001-0.159 2010 (3rd Report) 298,688,750 244,519,269 50,781,640 116,137,605 166,919,245 0.683 0.414 0.002-0.099 2009 (4th Report) 295,055,874 251,841,021 48,123,151 105,722,622 153,845,773 0.611 0.391 0.001-0.003 2008 (5th Report) 350,728,552 296,960,975 46,518,197 115,284,832 161,803,029 0.545 0.395 0.001 0.059 Alaska Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 287,115,410 241,618,940 38,932,517 122,080,853 161,013,370 0.666 0.312 0.008 0.014 2011 (2nd Report) 275,878,567 225,901,935 39,153,064 105,482,260 144,635,324 0.640 0.356 0.008-0.004 2010 (3rd Report) 264,739,888 221,028,614 39,381,140 108,475,331 147,856,471 0.669 0.362 0.012-0.043 2009 (4th Report) 293,630,009 246,715,824 38,758,248 91,307,573 130,065,821 0.527 0.358 0.005 0.110 2008 (5th Report) 324,249,198 269,518,683 43,908,924 101,137,143 145,046,067 0.538 0.318 0.012 0.132 Arizona Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 647,816,799 571,985,980 121,651,085 326,282,193 447,933,278 0.783 0.437 0.008-0.228 2011 (2nd Report) 581,940,521 510,942,240 127,042,660 312,878,910 439,921,570 0.861 0.475 0.012-0.348 2010 (3rd Report) 579,520,544 507,111,577 118,780,574 286,974,297 405,754,871 0.800 0.485 0.018-0.303 2009 (4th Report) 686,437,802 582,081,700 129,513,853 273,789,816 403,303,669 0.693 0.422 0.019-0.134 2008 (5th Report) 803,634,074 700,453,349 152,798,251 341,263,863 494,062,114 0.705 0.354 0.041-0.100 Arkansas Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 241,542,951 219,535,092 36,678,786 75,780,556 112,459,342 0.512 0.361 0.001 0.126 2011 (2nd Report) 232,685,474 204,324,527 41,018,273 73,004,694 114,022,967 0.558 0.367 0.001 0.074 2010 (3rd Report) 219,624,682 194,853,057 37,856,127 73,224,470 111,080,597 0.570 0.409 0.002 0.019 2009 (4th Report) 246,013,976 210,220,927 37,488,420 63,673,251 101,161,671 0.481 0.373 0.003 0.143 2008 (5th Report) 280,414,565 235,822,347 45,336,459 76,617,710 121,954,169 0.517 0.360 0.002 0.121
Colorado Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 705,228,903 621,993,717 233,477,371 298,396,674 531,874,045 0.855 0.379 0.058-0.292 2011 (2nd Report) 632,351,564 561,622,791 217,234,436 281,199,731 498,434,167 0.887 0.415 0.068-0.370 2010 (3rd Report) 605,222,448 541,751,878 207,155,099 283,698,700 490,853,799 0.906 0.405 0.083-0.394 2009 (4th Report) 741,180,740 651,029,304 212,000,162 257,311,669 469,311,831 0.721 0.393 0.167-0.281 2008 (5th Report) 911,262,077 776,843,450 257,457,765 296,049,962 553,507,727 0.713 0.389 0.092-0.194 Connecticut Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 742,464,009 652,081,441 243,548,091 240,525,607 484,073,698 0.742 0.368 0.005-0.115 2011 (2nd Report) 689,636,878 600,333,345 277,421,444 264,591,374 542,012,818 0.903 0.382 0.006-0.291 2010 (3rd Report) 618,185,935 552,595,492 269,305,868 242,163,699 511,469,567 0.926 0.403 0.008-0.337 2009 (4th Report) 646,850,776 569,126,713 243,923,997 228,761,517 472,685,514 0.831 0.380 0.007-0.218 2008 (5th Report) 679,151,697 619,190,131 268,285,076 219,543,835 487,828,911 0.788 0.354 0.008-0.150 District of Columbia Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 124,793,621 108,980,710 44,212,654 27,750,816 71,963,470 0.660 0.322 0.007 0.011 2011 (2nd Report) 108,459,722 92,189,363 38,368,314 21,701,301 60,069,615 0.652 0.381 0.009-0.042 2010 (3rd Report) 108,171,699 106,897,590 42,416,873 21,246,537 63,663,410 0.596 0.456 0.010-0.062 2009 (4th Report) 111,686,398 110,215,559 38,112,199 21,513,258 59,625,457 0.541 0.408 0.009 0.042 2008 (5th Report) 136,618,460 114,935,797 41,096,583 21,807,662 62,904,245 0.547 0.403 0.011 0.039 Florida Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 1,908,505,953 1,748,283,631 366,873,157 822,420,021 1,189,293,178 0.680 0.375 0.030-0.085 2011 (2nd Report) 1,574,688,671 1,494,906,978 349,960,995 752,268,584 1,102,229,579 0.737 0.373 0.041-0.151 2010 (3rd Report) 1,487,320,604 1,391,700,488 341,925,047 722,136,990 1,064,062,037 0.765 0.433 0.050-0.248 2009 (4th Report) 1,730,340,466 1,609,257,924 331,737,345 671,929,725 1,003,667,070 0.624 0.414 0.078-0.116 2008 (5th Report) 2,374,397,710 2,140,400,365 380,170,417 748,780,801 1,128,951,218 0.527 0.392 0.056 0.025
Georgia Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 1,146,222,239 965,976,774 308,530,030 337,860,074 646,390,104 0.669 0.436 0.004-0.109 2011 (2nd Report) 1,076,743,645 912,164,132 313,374,765 354,714,964 668,089,729 0.732 0.439 0.005-0.176 2010 (3rd Report) 994,811,244 848,709,343 300,096,263 308,446,044 608,542,307 0.717 0.424 0.005-0.146 2009 (4th Report) 1,123,278,269 942,380,517 305,527,289 353,932,877 659,460,166 0.700 0.466 0.004-0.170 2008 (5th Report) 1,262,504,604 1,082,204,598 346,213,712 367,714,738 713,928,450 0.660 0.468 0.005-0.133 Hawaii Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 186,809,984 168,335,479 57,179,752 50,935,279 108,115,031 0.642 0.373 0.009-0.024 2011 (2nd Report) 178,994,618 165,682,355 59,600,687 55,703,965 115,304,652 0.696 0.394 0.010-0.100 2010 (3rd Report) 181,604,538 164,256,875 60,955,710 51,081,540 112,037,250 0.682 0.434 0.012-0.128 2009 (4th Report) 210,658,598 188,546,385 61,292,731 50,162,827 111,455,558 0.591 0.380 0.019 0.010 2008 (5th Report) 282,651,303 256,638,141 69,379,870 53,531,838 122,911,708 0.479 0.342 0.021 0.158 Idaho Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 305,041,161 276,043,798 70,275,535 142,795,053 213,070,588 0.772 0.325 0.031-0.128 2011 (2nd Report) 288,620,026 257,066,375 65,604,901 134,591,358 200,196,259 0.779 0.308 0.043-0.130 2010 (3rd Report) 275,425,664 241,843,992 65,442,543 134,981,000 200,423,543 0.829 0.307 0.055-0.191 2009 (4th Report) 288,337,188 256,399,046 68,692,963 132,421,036 201,113,999 0.784 0.317 0.064-0.165 2008 (5th Report) 346,266,911 308,506,446 79,959,897 146,133,632 226,093,529 0.733 0.272 0.055-0.060 Illinois Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 2,760,195,511 2,220,281,317 714,320,962 707,748,133 1,422,069,095 0.640 0.352 0.003 0.005 2011 (2nd Report) 2,785,155,244 2,170,384,969 797,853,043 767,527,148 1,565,380,191 0.721 0.358 0.004-0.083 2010 (3rd Report) 2,656,921,751 2,027,669,437 836,632,754 817,702,218 1,654,334,972 0.816 0.399 0.004-0.219 2009 (4th Report) 2,787,136,314 2,119,400,440 853,683,419 812,703,758 1,666,387,177 0.786 0.383 0.003-0.172 2008 (5th Report) 2,999,399,745 2,290,934,285 1,025,192,465 922,034,296 1,947,226,761 0.850 0.359 0.003-0.212
Indiana Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 812,530,417 671,967,965 106,335,569 318,282,193 424,617,762 0.632 0.322 0.002 0.044 2011 (2nd Report) 741,537,308 604,220,937 115,794,679 328,445,720 444,240,399 0.735 0.338 0.002-0.075 2010 (3rd Report) 674,217,590 551,538,291 118,068,625 320,983,255 439,051,880 0.796 0.377 0.002-0.175 2009 (4th Report) 678,703,412 562,610,124 106,717,555 272,862,243 379,579,798 0.675 0.331 0.003-0.009 2008 (5th Report) 778,380,608 644,625,076 133,100,447 319,514,247 452,614,694 0.702 0.329 0.003-0.034 Iowa Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 670,973,118 600,456,974 165,749,298 244,076,535 409,825,833 0.683 0.320 0.027-0.030 2011 (2nd Report) 607,957,149 534,932,594 176,047,065 242,634,450 418,681,515 0.783 0.351 0.032-0.166 2010 (3rd Report) 552,987,105 488,803,598 182,816,597 247,928,178 430,744,775 0.881 0.367 0.033-0.281 2009 (4th Report) 562,886,413 502,677,912 169,406,685 225,134,825 394,541,510 0.785 0.341 0.034-0.160 2008 (5th Report) 574,565,799 513,255,612 186,448,153 228,378,047 414,826,200 0.808 0.340 0.032-0.180 Kansas Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 436,233,763 396,496,824 84,560,837 148,381,357 232,942,194 0.588 0.345 0.009 0.058 2011 (2nd Report) 403,307,676 375,390,520 100,614,905 166,247,360 266,862,265 0.711 0.403 0.013-0.127 2010 (3rd Report) 388,507,682 361,002,115 103,908,263 143,108,444 247,016,707 0.684 0.380 0.014-0.078 2009 (4th Report) 420,503,880 386,908,921 100,390,984 140,892,406 241,283,390 0.624 0.352 0.012 0.012 2008 (5th Report) 414,021,105 384,491,396 94,497,220 144,373,224 238,870,444 0.621 0.354 0.010 0.015 Kentucky Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 499,030,951 394,361,523 111,867,704 168,525,269 280,392,973 0.711 0.372 0.011-0.094 2011 (2nd Report) 531,821,265 419,148,583 118,070,735 177,796,519 295,867,254 0.706 0.367 0.001-0.074 2010 (3rd Report) 543,130,106 411,729,306 121,027,029 181,962,917 302,989,946 0.736 0.410 0.065-0.211 2009 (4th Report) 558,299,266 422,854,871 120,739,995 173,825,932 294,565,927 0.697 0.359 0.001-0.057 2008 (5th Report) 612,618,524 480,292,217 122,754,747 182,207,525 304,962,272 0.635 0.334 0.001 0.030
Louisiana Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 722,740,595 619,788,444 180,900,338 213,102,811 394,003,149 0.636 0.396 0.063-0.095 2011 (2nd Report) 674,525,854 584,957,642 184,523,311 216,103,421 400,626,732 0.685 0.460 0.033-0.178 2010 (3rd Report) 662,757,876 589,455,603 189,768,887 229,695,697 419,464,584 0.712 0.457 0.023-0.192 2009 (4th Report) 764,182,176 640,997,486 168,649,162 205,875,889 374,525,051 0.584 0.403 0.011 0.002 2008 (5th Report) 831,331,142 707,189,043 177,288,892 204,198,725 381,487,617 0.539 0.386 0.056 0.019 Maine Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 231,801,443 189,230,311 68,042,000 67,681,291 135,723,291 0.717 0.324 0.065-0.106 2011 (2nd Report) 242,063,173 189,718,074 64,582,482 69,402,617 133,985,099 0.706 0.357 0.061-0.124 2010 (3rd Report) 235,330,282 183,392,988 59,769,884 74,281,902 134,051,786 0.731 0.333 0.059-0.123 2009 (4th Report) 228,090,509 197,339,830 59,231,317 71,290,163 130,521,480 0.661 0.333 0.051-0.045 2008 (5th Report) 272,284,333 215,037,423 70,083,652 77,633,586 147,717,238 0.687 0.311 0.071-0.069 Maryland Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 620,563,090 518,859,889 193,084,762 213,563,435 406,648,197 0.784 0.346 0.006-0.136 2011 (2nd Report) 569,341,855 479,043,609 204,912,530 221,671,787 426,584,317 0.890 0.414 0.006-0.310 2010 (3rd Report) 534,915,351 462,511,822 194,260,945 212,035,488 406,296,433 0.878 0.423 0.007-0.308 2009 (4th Report) 556,401,195 472,557,963 191,099,077 194,335,558 385,434,635 0.816 0.371 0.007-0.194 2008 (5th Report) 668,721,795 569,262,656 217,638,437 225,458,715 443,097,152 0.778 0.363 0.008-0.149 Mississippi Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 285,834,857 247,701,515 67,904,402 98,397,979 166,302,381 0.671 0.363 0.001-0.035 2011 (2nd Report) 275,737,301 239,994,424 72,682,237 105,575,841 178,258,078 0.743 0.417 0.001-0.161 2010 (3rd Report) 274,128,949 224,017,154 72,325,725 110,131,827 182,457,552 0.814 0.434 0.001-0.249 2009 (4th Report) 312,124,233 267,371,066 60,768,076 100,107,336 160,875,412 0.602 0.370 0.001 0.027 2008 (5th Report) 330,027,032 286,097,502 58,546,542 88,990,207 147,536,749 0.516 0.383 0.001 0.100
Missouri Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 781,978,659 690,487,124 184,157,319 293,984,709 478,142,028 0.692 0.364 0.005-0.061 2011 (2nd Report) 761,288,485 654,684,196 193,039,640 307,087,019 500,126,659 0.764 0.370 0.005-0.139 2010 (3rd Report) 748,746,737 643,123,458 178,530,354 264,879,518 443,409,872 0.689 0.387 0.006-0.082 2009 (4th Report) 850,706,714 711,984,419 186,293,746 262,755,824 449,049,570 0.631 0.345 0.006 0.018 2008 (5th Report) 971,409,430 817,857,070 206,015,776 296,511,160 502,526,936 0.614 0.356 0.006 0.024 Montana Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 296,288,807 257,011,876 64,053,223 127,720,308 191,773,531 0.746 0.309 0.024-0.079 2011 (2nd Report) 313,597,827 262,465,658 61,448,006 143,346,161 204,794,167 0.780 0.385 0.015-0.180 2010 (3rd Report) 324,049,639 280,837,290 65,471,117 142,454,756 207,925,873 0.740 0.328 0.009-0.077 2009 (4th Report) 341,988,838 292,466,163 61,753,753 139,641,715 201,395,468 0.689 0.386 * 0.004 * -0.079 2008 (5th Report) 377,811,714 335,964,341 83,184,068 161,214,531 244,398,599 0.727 0.323 * 0.004 * -0.054 Nebraska Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 354,751,042 303,911,369 75,350,626 136,032,776 211,383,402 0.696 0.302 0.017-0.015 2011 (2nd Report) 332,923,637 279,976,398 67,065,156 131,674,205 198,739,361 0.710 0.330 0.022-0.062 2010 (3rd Report) 335,485,200 274,361,973 74,172,571 126,579,352 200,751,923 0.732 0.352 0.022-0.106 2009 (4th Report) 353,695,335 294,827,312 72,291,953 121,820,716 194,112,669 0.658 0.316 0.022 0.004 2008 (5th Report) 368,923,325 309,290,878 74,262,489 128,121,439 202,383,928 0.654 0.314 0.017 0.015 Nevada Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 275,722,856 239,647,010 88,280,779 107,001,224 195,282,003 0.815 0.375 0.002-0.192 2011 (2nd Report) 277,804,328 239,010,614 83,031,924 98,873,509 181,905,433 0.761 0.324 0.002-0.087 2010 (3rd Report) 318,996,339 226,199,506 84,115,997 94,490,123 178,606,120 0.790 0.406 0.004-0.200 2009 (4th Report) 358,713,821 291,515,030 107,299,132 102,551,287 209,850,419 0.720 0.355 0.003-0.078 2008 (5th Report) 437,759,357 370,717,141 132,496,340 116,522,707 249,019,047 0.672 0.345 0.002-0.019 * Reflects private carrier data only
New Hampshire Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 261,233,026 222,655,626 39,193,217 104,545,156 143,738,373 0.646 0.386 0.006-0.038 2011 (2nd Report) 246,347,058 192,406,552 42,357,409 107,339,754 149,697,163 0.778 0.388 0.009-0.175 2010 (3rd Report) 238,298,820 201,564,159 40,371,250 103,029,918 143,401,168 0.711 0.395 0.005-0.111 2009 (4th Report) 252,717,790 214,759,851 41,400,053 101,281,680 142,681,733 0.664 0.455 0.010-0.129 2008 (5th Report) 280,235,386 233,690,554 46,498,833 103,254,805 149,753,638 0.641 0.384 0.011-0.036 New Mexico Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 254,851,646 223,648,340 60,069,795 130,251,805 190,321,600 0.851 0.394 0.001-0.246 2011 (2nd Report) 234,045,330 204,586,297 58,536,863 98,197,598 156,734,461 0.766 0.402 0.002-0.170 2010 (3rd Report) 230,203,637 203,425,320 60,953,011 101,953,038 162,906,049 0.801 0.433 0.002-0.236 2009 (4th Report) 257,076,627 217,196,387 55,426,282 105,636,280 161,062,562 0.742 0.388 0.002-0.132 2008 (5th Report) 285,509,930 241,917,356 61,964,446 100,894,486 162,858,932 0.673 0.382 0.001-0.056 North Carolina Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 1,333,444,091 1,095,168,285 413,751,743 390,864,619 804,616,362 0.735 0.353 0.004-0.092 2011 (2nd Report) 1,261,292,024 1,001,866,279 421,400,870 386,410,510 807,811,380 0.806 0.363 0.004-0.173 2010 (3rd Report) 1,162,512,702 941,557,510 387,316,558 344,821,101 732,137,659 0.778 0.382 0.005-0.165 2009 (4th Report) 1,361,813,310 1,084,059,163 397,472,500 355,619,475 753,091,975 0.695 0.356 0.004-0.055 2008 (5th Report) 1,625,965,972 1,308,389,022 462,397,348 400,223,292 862,620,640 0.659 0.345 0.005-0.009 Oklahoma Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 918,784,662 789,443,496 290,116,364 230,931,593 521,047,957 0.660 0.356 0.001-0.017 2011 (2nd Report) 804,747,652 677,621,624 269,573,706 237,182,056 506,755,762 0.748 0.385 0.001-0.134 2010 (3rd Report) 745,226,076 644,745,217 280,419,059 234,498,893 514,917,952 0.799 0.387 0.001-0.187 2009 (4th Report) 756,792,844 640,498,722 288,599,492 223,032,056 511,631,548 0.799 0.359 0.001-0.159 2008 (5th Report) 756,323,111 644,824,158 293,723,652 236,397,398 530,121,050 0.822 0.338 0.030-0.190
Oregon Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 666,609,077 552,703,566 197,700,769 284,542,167 482,242,936 0.873 0.379 0.250-0.502 2011 (2nd Report) 645,135,376 545,493,420 191,269,750 266,983,867 458,253,617 0.840 0.400 0.262-0.502 2010 (3rd Report) 568,501,167 481,500,918 167,285,107 253,345,597 420,630,704 0.874 0.363 0.366-0.603 2009 (4th Report) 654,686,048 543,015,920 188,671,987 263,669,475 452,341,462 0.833 0.376 0.005-0.214 2008 (5th Report) 760,279,590 656,562,631 224,656,802 292,309,100 516,965,902 0.787 0.331 0.002-0.120 Rhode Island Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 185,892,997 160,351,620 74,551,405 37,980,203 112,531,608 0.702 0.485 0.024-0.211 2011 (2nd Report) 172,875,714 150,741,284 81,547,727 41,137,047 122,684,774 0.814 0.506 0.018-0.338 2010 (3rd Report) 170,959,336 142,907,980 72,411,853 39,080,268 111,492,121 0.780 0.489 0.019-0.288 2009 (4th Report) 186,152,056 154,818,439 78,427,272 40,871,284 119,298,556 0.771 0.509 0.013-0.293 2008 (5th Report) 215,636,142 179,865,294 74,838,919 39,016,763 113,855,682 0.633 0.475 0.034-0.142 South Carolina Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 617,715,388 546,074,441 175,927,836 149,744,960 325,672,796 0.596 0.421 0.002-0.019 2011 (2nd Report) 602,588,341 508,718,800 183,604,186 153,316,973 336,921,159 0.662 0.460 0.001-0.123 2010 (3rd Report) 566,189,058 486,353,212 176,500,898 170,636,359 347,137,257 0.714 0.454 0.002-0.170 2009 (4th Report) 646,234,165 541,629,829 182,069,097 150,628,961 332,698,058 0.614 0.456 0.001-0.071 2008 (5th Report) 760,538,723 648,181,362 203,548,672 172,815,067 376,363,739 0.581 0.414 0.001 0.004 South Dakota Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 177,755,440 146,403,211 23,426,750 60,921,804 84,348,554 0.576 0.320 0.011 0.093 2011 (2nd Report) 165,924,927 133,688,897 30,113,851 72,811,220 102,925,071 0.770 0.339 0.013-0.122 2010 (3rd Report) 151,237,279 125,158,539 26,012,810 59,510,314 85,523,124 0.683 0.332 0.012-0.027 2009 (4th Report) 151,827,046 127,667,769 25,567,757 64,012,606 89,580,363 0.702 0.332 0.012-0.046 2008 (5th Report) 149,845,350 125,136,564 26,750,135 74,076,575 100,826,710 0.806 0.375 0.009-0.190
Tennessee Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 815,843,348 702,450,835 158,633,725 291,192,245 449,825,970 0.640 0.355 0.002 0.003 2011 (2nd Report) 740,121,597 620,903,200 161,953,910 276,239,972 438,193,882 0.706 0.381 0.001-0.088 2010 (3rd Report) 704,364,381 591,707,945 159,191,689 320,037,892 479,229,581 0.810 0.417 0.002-0.229 2009 (4th Report) 753,541,054 636,915,930 160,496,181 272,415,843 432,912,024 0.680 0.392 0.001-0.073 2008 (5th Report) 926,870,036 786,726,183 186,891,105 315,445,562 502,336,667 0.639 0.391 0.002-0.032 Texas Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 2,771,992,008 2,032,417,461 411,894,860 619,697,098 1,031,591,958 0.508 0.335 0.072 0.085 2011 (2nd Report) 2,513,445,345 1,796,837,110 368,943,907 570,411,095 939,355,002 0.523 0.361 0.082 0.034 2010 (3rd Report) 2,334,790,935 1,727,625,604 355,857,596 529,788,524 885,646,120 0.513 0.364 0.061 0.062 2009 (4th Report) 2,546,429,905 1,856,962,617 317,233,238 462,989,950 780,223,188 0.420 0.350 0.042 0.188 2008 (5th Report) 2,946,510,214 2,165,543,514 386,641,721 553,394,309 940,036,030 0.434 0.337 0.065 0.164 Utah Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 374,268,328 305,523,138 55,821,347 169,168,835 224,990,182 0.736 0.387 0.011-0.134 2011 (2nd Report) 342,724,219 278,016,679 52,761,532 166,250,436 219,011,968 0.788 0.417 0.026-0.231 2010 (3rd Report) 333,341,996 274,542,913 51,659,394 144,144,600 195,803,994 0.713 0.443 0.060-0.216 2009 (4th Report) 383,812,552 323,276,435 57,071,653 153,948,518 211,020,171 0.653 0.375 0.028-0.056 2008 (5th Report) 496,161,482 402,087,005 69,198,864 182,652,286 251,851,150 0.626 0.372 0.034-0.032 Vermont Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 176,122,677 155,976,640 53,626,222 62,912,344 116,538,566 0.747 0.326 0.005-0.078 2011 (2nd Report) 160,849,514 139,390,271 53,206,817 63,324,303 116,531,120 0.836 0.364 0.006-0.206 2010 (3rd Report) 159,127,147 137,271,262 46,839,411 53,619,048 100,458,459 0.732 0.371 0.006-0.109 2009 (4th Report) 175,866,286 147,351,703 53,297,161 56,389,231 109,686,392 0.744 0.343 0.008-0.095 2008 (5th Report) 203,034,013 167,536,173 51,245,636 54,682,910 105,928,546 0.632 0.349 0.012 0.007
Virginia Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 759,853,906 693,231,709 183,361,188 348,099,797 531,460,985 0.767 0.341 0.005-0.113 2011 (2nd Report) 753,582,341 681,455,773 169,836,887 303,067,840 472,904,727 0.694 0.356 0.006-0.056 2010 (3rd Report) 717,745,728 664,288,388 181,081,535 307,286,662 488,368,197 0.735 0.370 0.006-0.111 2009 (4th Report) 756,715,808 685,307,292 166,963,311 280,362,307 447,325,618 0.653 0.350 0.005-0.008 2008 (5th Report) 819,702,154 738,814,175 184,948,186 289,806,675 474,754,861 0.643 0.356 0.008-0.007 West Virginia Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 290,761,668 270,246,368 56,091,185 72,544,670 128,635,855 0.476 0.394 0.001 0.129 2011 (2nd Report) 305,744,467 286,483,987 69,158,077 90,975,277 160,133,354 0.559 0.396 0.001 0.044 2010 (3rd Report) 301,595,630 283,661,796 77,751,566 87,427,768 165,179,334 0.582 0.343 0.000 0.075 Total Excluding West Virginia Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 24,647,522,436 20,804,232,125 5,806,959,919 8,283,176,256 14,090,136,175 0.677 0.362 0.025-0.064 2011 (2nd Report) 23,108,982,216 19,241,141,669 5,904,763,658 8,209,511,794 14,114,275,452 0.734 0.383 0.027-0.144 2010 (3rd Report) 21,965,988,865 18,362,559,683 5,820,865,803 7,976,552,102 13,797,417,905 0.751 0.400 0.031-0.182 2009 (4th Report) 24,030,567,693 19,954,786,514 5,786,191,196 7,605,181,489 13,391,372,685 0.671 0.380 0.022-0.073 2008 (5th Report) 27,615,745,163 23,025,762,913 6,585,938,698 8,397,993,653 14,983,932,351 0.651 0.364 0.024-0.039 Total Including West Virginia Premium Premium Losses Losses Losses (5)/(2) Ratio Ratio 1.000-((6)+(7)+(8)) 2012 (1st Report) 24,938,284,104 21,074,478,493 5,863,051,104 8,355,720,926 14,218,772,030 0.675 0.363 0.025-0.063 2011 (2nd Report) 23,414,726,683 19,527,625,656 5,973,921,735 8,300,487,071 14,274,408,806 0.731 0.383 0.027-0.141 2010 (3rd Report) 22,267,584,495 18,646,221,479 5,898,617,369 8,063,979,870 13,962,597,239 0.749 0.399 0.030-0.178
Components of Expense Ratio for Calendar-Accident Year 2012 (1) (2) (3) (4) (5) (6) Direct Defense General and and Cost Adjusting and Commission Taxes, Other Containment Other and Brokerage Licenses and Acquisition Total Expense Ratio (sum of columns (1) to State Alabama Expense 4.7% Expenses 4.6% Expenses 8.8% Fees 5.1% Expenses 11.8% (5)) 35.0% Alaska 6.2% 5.1% 6.7% 1.4% 11.8% 31.2% Arizona 9.3% 7.4% 6.9% 5.7% 14.4% 43.7% Arkansas 5.4% 4.5% 8.1% 6.3% 11.8% 36.1% Colorado 3.8% 7.0% 11.7% 3.2% 12.2% 37.9% Connecticut 7.5% 6.4% 8.4% 2.7% 11.8% 36.8% District of Columbia 4.4% 3.6% 6.9% 5.5% 11.8% 32.2% Florida 7.4% 4.7% 9.2% 4.4% 11.8% 37.5% Georgia 7.9% 5.3% 8.8% 9.8% 11.8% 43.6% Hawaii 5.0% 5.5% 7.6% 6.2% 13.0% 37.3% Idaho 5.0% 6.8% 6.4% 3.8% 10.5% 32.5% Illinois 7.5% 6.1% 7.8% 2.0% 11.8% 35.2% Indiana 5.1% 5.5% 8.0% 1.8% 11.8% 32.2% Iowa 5.2% 5.6% 7.4% 2.0% 11.8% 32.0% Kansas 6.1% 5.0% 8.2% 3.4% 11.8% 34.5% Kentucky 7.5% 7.4% 9.3% 1.4% 11.6% 37.2% Louisiana 7.8% 4.6% 8.8% 6.8% 11.6% 39.6% Maine 4.8% 4.8% 7.7% 3.3% 11.8% 32.4% Maryland 4.9% 5.7% 7.7% 4.5% 11.8% 34.6% Mississippi 6.6% 5.0% 8.8% 4.1% 11.8% 36.3% Missouri 7.5% 5.8% 8.1% 2.0% 13.0% 36.4% Montana 3.7% 6.6% 6.4% 1.4% 12.8% 30.9% Nebraska 4.1% 5.2% 7.2% 1.9% 11.8% 30.2% Nevada 7.2% 2.9% 10.1% 5.5% 11.8% 37.5% New Hampshire 5.2% 5.0% 8.9% 7.7% 11.8% 38.6% New Mexico 6.5% 8.4% 8.9% 3.5% 12.1% 39.4% North Carolina 6.6% 6.2% 7.9% 2.8% 11.8% 35.3% Oklahoma 7.2% 5.4% 6.9% 5.1% 11.0% 35.6% Oregon 5.1% 13.7% 5.7% 1.0% 12.4% 37.9% Rhode Island 4.7% 10.3% 8.9% 10.1% 14.5% 48.5% South Carolina 7.9% 5.1% 7.9% 9.4% 11.8% 42.1% South Dakota 4.5% 4.6% 7.4% 3.7% 11.8% 32.0% Tennessee 6.3% 5.3% 7.9% 4.2% 11.8% 35.5% Texas 5.3% 3.7% 9.5% 4.2% 10.8% 33.5% Utah 7.7% 6.7% 5.9% 3.7% 14.7% 38.7% Vermont 4.7% 5.0% 8.5% 2.6% 11.8% 32.6% Virginia 6.0% 5.7% 7.7% 2.9% 11.8% 34.1% West Virginia 13.6% 3.8% 8.4% 1.8% 11.8% 39.4%