Annual Rate Of Return: Net Income After Taxes As A Percent Of Equity, 2011-2020

 

  Property/casualty (1) Life/annuity Selected other industries (2)  
Year Statutory accounting (3) GAAP accounting (4) Life/annuity insurance (5) Healthcare insurance (6) Diversified financial (7) Commercial banks Electric and gas utilities Fortune 500 combined industrials and service (8)
2011 3.5% 3.0% 8.0% 15.0% 12.0% 8.0% 10.0% 14.5%
2012 6.1 5.3 7.0 12.0 18.0 9.0 8.0 15.0
2013 10.2 8.9 7.0 13.0 18.0 9.0 9.0 13.7
2014 8.4 7.5 9.0 12.0 22.0 9.0 10.0 14.2
2015 8.4 7.4 8.0 12.0 22.0 8.0 9.0 13.3
2016 6.2 5.5 7.0 11.0 14.0 8.0 9.0 12.9
2017 5.0 (9) 9.0 15.0 14.0 9.0 10.0 14.1
2018 8.0 NA 6.0 12.0 20.0 12.0 10.0 14.5
2019 7.8 NA 7.0 19.0 24.0 11.0 10.0 13.2
2020 6.8 NA 2.0 22.0 15.0 8.0 10.0 10.8
(1) Excludes state funds for workers compensation and other residual market carriers. (2) Return on equity on a GAAP accounting basis, Fortune. (3) Statutory net income after taxes, divided by the average of current and prior year-end policyholders’ surplus. Calculated by ISO. Statutory accounting is used by insurers when preparing the Annual Statements they submit to regulators. (4) Estimated from statutory data. Equals GAAP net income divided by the average of current and prior-year-end GAAP net worth. Calculated by ISO. (5) Return on equity on a GAAP accounting basis, Fortune. Combined stock and mutual companies, calculated by the Insurance Information Institute. (6) Healthcare insurance and managed care. (7) Companies whose major source of revenue comes from providing diversified financial services. These companies are not specifically chartered as insurance companies, banks or savings institutions, or brokerage or securities companies, but they may earn revenue from these sources. (8) Fortune 500 Combined Industrial and Service Businesses median return on shareholders' equity. (9) Data not available from ISO due to the uncertainties associated with the implementation of the Tax Cuts and Jobs Act of 2017. NA=Data not available. Source: ISO®, a Verisk Analytics business®; Fortune.