The Watermark is a quarterly report that provides transparency on the financial state of the National Flood Insurance Program (NFIP). This report provides information about the NFIP to interested groups and individuals, such as policyholders, industry partners and government officials.
Download the Latest Watermark - Fourth Quarter FY2020
Statistics
Current as of September 30, 2020
22,500
Participating Communities
$730
Average Annual Premium
(Incl. Premium & Federal Policy Fee)
$1.3 Trillion
Total Coverage of NFIP Policies
5.074 Million
Number of NFIP Policies in Force
$16.1 Billion
Capacity to Pay Claims
$20.5 Billion
Outstanding Debt with Treasury
Featured News
The Heritage Emergency National Task Force (HENTF) is a partnership between the Office of Environmental Planning & Historic Preservation (OEHP) and the Smithsonian Cultural Rescue Initiative (SCRI). It strives to protect cultural and historic resources in our nation’s states, tribes, territories and local communities from the damaging effects of disasters. In addition to assisting museums and other cultural institutions when their collections are damaged by an event, HENTF helps reduce disaster suffering by assisting the public.
Using big data, FEMA’s modeling of the 18.1 million buildings constructed in the United States since 2000 has found the nation has saved $1.6 billion every year. These savings represent the cumulative losses avoided when structures follow International Codes or similar building codes that mitigate flood, hurricane and earthquake damage. FEMA projects that by 2040, the nation will save around $3.2 billion per year. This adds up to almost $133 billion in total losses avoided from 2000 to 2040.
NFIP Available Funds - as of 9/30/2020
The NFIP’s Available Resources provides information similar to a “Balance Sheet” used in the private sector. It is a snapshot of the program’s finances, including any prior period carryover for the given period.
AVAILABLE RESOURCES ($ in Thousands) | June 30, 2020 | Sep. 30, 2020 |
---|---|---|
Flood Fund Balance | 5,683,887 | 5,870,295 |
Unpaid Obligations | (726,112) | (698,057) |
Unpaid Loss & Loss Adjustment (Claims) | (336,437) | (707,677) |
Mandatory Sequestration | (90,093) | (90,093) |
Flood Fund Available Resources | 4,531,245 | 4,374,468 |
Reserve Fund Balance | 160,567 | 531,138 |
Net Investments | 1,739,066 | 1,579,834 |
Outstanding Obligations | (364,810) | (275,590) |
Reserve Fund Available Resources | 1,534,823 | 1,835,382 |
Remaining Borrowing Authority | 9,900,000 | 9,900,000 |
NFIP Total Capacity to Pay Claims * | 15,966,068 | 16,109,850 |
* FEMA’s reinsurance placements augment the NFIP’s Available Resources. After qualifying losses for a single event exceed $4B, the NFIP may collect up to $2.53B should the event reach $10B in losses.
Statements of Operations - as of 9/30/2020
National Flood Insurance Fund ($ in Thousands)
REVENUE | FY 2019 | FY 2020 Q4 | FY 2020 |
---|---|---|---|
Premium | 3,386,176 | 1,010,389 | 3,510,140 |
Reinsurance | 0 | 0 | 0 |
Federal Policy Fee | 193,114 | 53,826 | 191,199 |
Other Revenue | 9,039 | 3,211 | 10,213 |
Total Flood Fund Revenue | 3,588,329 | 1,067,426 | 3,711,552 |
EXPENSES | FY 2019 | FY 2020 Q4 | FY 2020 |
---|---|---|---|
Total Loss & Loss Adjustment (Claims) | 1,884,347 | 268,121 | 1,447,313 |
Unpaid Loss & Loss Adjustment (Claims)* | 1,351,335 | 374,662 | (670,576) |
Commissions | 64,575 | 15,890 | 57,662 |
WriteYourOwn (WYO) Expense Allowance | 913,995 | 198,212 | 901,715 |
Interest Paid on Debt | 415,341 | 221,594 | 438,412 |
Floodplain Management & Mapping Activities | 147,204 | 87,725 | 174,295 |
Flood Related Grant Activities | 90,354 | 61,873 | 121,291 |
Other Expenses | 496,613 | 29,052 | 266,833 |
Total Flood Fund Expenses | 5,363,764 | 1,257,129 | 2,736,945 |
FLOOD FUND NET INCOME (LOSS)** | (1,775,435) | (189,703) | 974,607 |
National Flood Insurance Reserve Fund ($ in Thousands)
REVENUE | FY 2019 | FY 2020 Q4 | FY 2020 |
---|---|---|---|
Assessment | 503,585 | 193,584 | 583,703 |
Surcharge | 361,596 | 109,792 | 338,458 |
Return on Investment | 17,453 | 6,189 | 13,743 |
Total Reserve Fund Revenue | 882,634 | 309,565 | 935,904 |
EXPENSES | FY 2019 | FY 2020 Q4 | FY 2020 |
---|---|---|---|
Total Loss & Loss Adjustment (Claims) | 0 | 0 | 0 |
Reinsurance-Traditional | 185,880 | 51,308 | 153,924 |
Reinsurance-ILS | 80,260 | 37,912 | 131,781 |
Obligated But Not Expended | 27,074 | (89,220) | 73,624 |
Total Reserve Fund Expenses | 293,214 | 0 | 359,329 |
RESERVE FUND NET INCOME (LOSS) | 589,420 | 309,565 | 576,575 |
* In FY 2019, a new Federal Accounting Standard, Statement of Federal Financial Accounting Standards (SFFAS) 51 was issued that made changes to how claims are reported. SFFAS 51 gives guidance that claims must be reported at the time of occurrence. Unpaid Claims in this Watermark report show claims pursuant to SFFAS 51 and have been separated from Total Loss & Loss Adjustment. Unpaid claims include projections of claims reported, and projections of claims Incurred But Not Reported (IBNR), which is an estimate of claims not yet reported to insurance companies.
** The combination of Total Revenue and Total Expenses contribute to the Net Income or Net Losses for the NFIP. Because of the NFIP’s current structure of premium discounts, interest expenses on debt, and loss concentrations, Net Losses are anticipated.
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2020
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