Return on Net Worth Falls Slightly in 2019 to 13.7%

Insurer profitability data from the National Association of Insurance Commissioners shows return on net worth dropped to 13.7% in 2019 from 14.3% in 2018, the California Workers’ Compensation Institute reported. The 10-year average after-tax gain for California comp carriers is 8%, just under the nationwide average of 8.2%. “Although stockholder-owned companies usually aim for a 15% return on net worth, that goal is rarely achieved, so a 12% return is considered a more realistic target,” CWCI said in a bulletin. “California workers’ compensation insurers ex...