Work Comp Profits Slipped in 2014 as Premium Grew

Insurers earned average profits of 5.7% on the workers' compensation line in 2014, down from 7.1% in 2013 even though premiums grew, according to a report released on New Year's Eve by the National Association of Insurance Commissioners. NAIC reported net earned workers' compensation premiums of $45.2 million in 2014, up 5.4% from $42.9 million in 2013. But the workers' comp line saw an average 3.2% underwriting loss in 2014, compared to a 1.1% gain the year before. Insurers were able to enjoy a profit on the product only because of an average 11.6% investment gain on insuranc...