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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 - Fourth Quarter FY2020


Current as of September 30, 2020

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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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5.074 Million

Number of NFIP Policies in Force

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$16.1 Billion

Capacity to Pay Claims

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$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, 2020Sep. 30, 2020
Flood Fund Balance5,683,8875,870,295
Unpaid Obligations(726,112)(698,057)
Unpaid Loss & Loss Adjustment (Claims)(336,437)(707,677)
Mandatory Sequestration(90,093)(90,093)
Flood Fund Available Resources4,531,2454,374,468
Reserve Fund Balance160,567531,138
Net Investments1,739,0661,579,834
Outstanding Obligations(364,810)(275,590)
Reserve Fund Available Resources1,534,8231,835,382
Remaining Borrowing Authority9,900,0009,900,000
NFIP Total Capacity to Pay Claims *15,966,06816,109,850

* 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)

REVENUEFY 2019FY 2020 Q4FY 2020
Federal Policy Fee193,11453,826191,199
Other Revenue9,0393,21110,213
Total Flood Fund Revenue3,588,3291,067,4263,711,552
EXPENSESFY 2019FY 2020 Q4FY 2020
Total Loss & Loss Adjustment (Claims)1,884,347268,1211,447,313
Unpaid Loss & Loss Adjustment (Claims)*1,351,335374,662(670,576)
WriteYourOwn (WYO) Expense Allowance913,995198,212901,715
Interest Paid on Debt415,341221,594438,412
Floodplain Management & Mapping Activities147,20487,725174,295
Flood Related Grant Activities90,35461,873121,291
Other Expenses496,61329,052266,833
Total Flood Fund Expenses5,363,7641,257,1292,736,945
FLOOD FUND NET INCOME (LOSS)**(1,775,435)(189,703)974,607

National Flood Insurance Reserve Fund ($ in Thousands)

REVENUEFY 2019FY 2020 Q4FY 2020
Return on Investment17,4536,18913,743
Total Reserve Fund Revenue882,634309,565935,904
EXPENSESFY 2019FY 2020 Q4FY 2020
Total Loss & Loss Adjustment (Claims)000
Obligated But Not Expended27,074(89,220)73,624
Total Reserve Fund Expenses293,2140359,329
RESERVE FUND NET INCOME (LOSS)589,420309,565576,575

* 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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Last updated January 11, 2021