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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 - Second Quarter FY2021

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Statistics

Current as of March 31, 2021

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22,522

Participating Communities

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$739

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

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$1.3 Trillion

Total Coverage of NFIP Policies

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5.004 Million

Number of NFIP Policies in Force

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$16.5 Billion

Capacity to Pay Claims

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$20.5 Billion

Outstanding Debt with Treasury

Featured News

The Office of the Flood Insurance Advocate (OFIA) reflects on its role within FEMA over the last five years. The report highlights progress, provides transparency, and supports FEMA’s Federal Insurance and Mitigation Administration in its ongoing improvements to the NFIP. The OFIA continues to identify and report on topics to improve the customer experience.

The annual Hazard Mitigation Assistance (HMA) Division’s Year in Review provides an overview of HMA’s 2020 activities and accomplishments. It also highlights success stories that demonstrate how HMA advances FEMA's strategic goals of building a culture of preparedness and readying the nation for catastrophic disasters through its grant programs.

NFIP Available Funds - as of 03/31/2021

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)Dec. 31, 2020Mar. 31, 2021
Flood Fund Balance5,769,5875,910,818
Unpaid Obligations(804,945)(760,242)
Unpaid Loss & Loss Adjustment (Claims)(549,823)(292,556)
Mandatory Sequestration(88,806)(88,806)
Flood Fund Available Resources4,326,0124,769,214
Reserve Fund Balance770,709277,976
Net Investments1,513,8282,102,246
Outstanding Obligations(186,009)(504,445)
Reserve Fund Available Resources2,098,5281,875,778
Remaining Borrowing Authority9,900,0009,900,000
NFIP Total Capacity to Pay Claims *16,324,54116,544,992

* 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 03/31/2021

National Flood Insurance Fund ($ in Thousands)

REVENUEFY 2020 FY 2021 Q2FY 2021 YTD
Premium3,510,140782,8011,446,337
Reinsurance000
Federal Policy Fee191,19940,90481,089
Other Revenue10,2134,6957,459
Total Flood Fund Revenue3,711,552828,4001,534,885
EXPENSESFY 2020FY 2021 Q2 FY 2021 YTD
Total Loss & Loss Adjustment (Claims)1,447,313169,738673,598
Unpaid Loss & Loss Adjustment (Claims)*(670,576)(203,337)(415,121)
Commissions57,66212,30824,270
Write Your Own (WYO) Expense Allowance901,715201,995396,283
Interest Paid on Debt438,412101,544213,469
Floodplain Management & Mapping Activities174,29528,59671,925
Flood Related Grant Activities121,291100,656133,839
Other Expenses266,833(1,700)74,865
Total Flood Fund Expenses2,736,945409,8001,173,128
FLOOD FUND NET INCOME (LOSS)**974,607418,600361,757

National Flood Insurance Reserve Fund ($ in Thousands)

REVENUEFY 2020FY 2021 Q2FY 2021 YTD
Assessment583,703128,575304,491
Surcharge338,45865,725154,728
Return on Investment13,7435,4986,591
Total Reserve Fund Revenue935,904199,798465,810
EXPENSESFY 2020FY 2021 Q2FY 2021 YTD
Total Loss & Loss Adjustment (Claims)000
Reinsurance-Traditional153,92450,595101,903
Reinsurance-ILS131,78149,08887,361
Obligated But Not Expended73,624344,023254,442
Total Reserve Fund Expenses359,329443,706443,706
RESERVE FUND NET INCOME (LOSS)576,575(243,908)22,104

* 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 August 12, 2021