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The Watermark - National Flood Insurance Program Financial Statements

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 - First Quarter FY2022

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Current as of December 31, 2021

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Participating Communities

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Average Annual Premium
(Incl. Premium & Federal Policy Fee)

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$1.3 Trillion

Total Coverage of NFIP Policies

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4.880 Million

Number of NFIP Policies in Force

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$16.7 Billion

Capacity to Pay Claims

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$20.5 Billion

Outstanding Debt with Treasury

Featured News

This section of the Watermark shows how policy money funds NFIP activities. As of December 31, 2021, the average premium, including FPF, is $771.
Since 1990, the Community Rating System (CRS) has been a voluntary program for recognizing and encouraging community floodplain management activities exceeding the minimum NFIP standards. Flood insurance premiums for policyholders in a CRS-participating community are reduced to reflect the added flood risk protection that results from community activities.

NFIP Available Funds - as of 12/31/2021

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)Sept. 30, 2021Dec. 31, 2021
Flood Fund Balance6,405,7485,735,064
Unpaid Obligations(846,510)(878,473)
Unpaid Loss & Loss Adjustment (Claims)(524,033)(537,495)
Mandatory Sequestration(88,806)(74,000)
Flood Fund Available Resources4,229,1644,245,096
Reserve Fund Balance1,430,3031,596,905
Net Investments1,334,0311,334,991
Outstanding Obligations(327,580)(404,266)
Reserve Fund Available Resources2,436,7532,527,629
Remaining Borrowing Authority9,900,0009,900,000
NFIP Total Capacity to Pay Claims *16,565,91716,672,725

* 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 $2.3B should the event reach $10B in losses.

Statements of Operations - as of 12/31/2021

National Flood Insurance Fund ($ in Thousands)

REVENUEFY 2021 FY 2022 Q1FY 2022
Federal Policy Fee187,76042,40142,401
Other Revenue13,6932,3462,346
Total Flood Fund Revenue3,722,741732,048732,048
EXPENSESFY 2021FY 2022 Q1 FY 2022
Total Loss & Loss Adjustment (Claims)1,369,0031,121,8991,121,899
Unpaid Loss & Loss Adjustment (Claims)*525,545(1,868,040)(1,868,040)
Write Your Own (WYO) Expense Allowance938,959204,347204,347
Interest Paid on Debt356,81372,45972,459
Floodplain Management & Mapping Activities223,42742,65542,655
Flood Related Grant Activities239,3052,2262,226
Other Expenses246,3151,173,4011,173,401
Total Flood Fund Expenses3,958,697761,259761,259
FLOOD FUND NET INCOME (LOSS)**(235,956)(29,211)(29,211)

National Flood Insurance Reserve Fund ($ in Thousands)

REVENUEFY 2021FY 2022 Q1FY 2022
Return on Investment77,3321,5641,564
Total Reserve Fund Revenue998,447258,507258,507
EXPENSESFY 2021FY 2022 Q1FY 2022
Total Loss & Loss Adjustment (Claims)000
Obligated But Not Expended51,99076,68576,685
Total Reserve Fund Expenses443,706168,590168,590
RESERVE FUND NET INCOME (LOSS)554,74189,91789,917

* 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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