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 FY2022
Statistics
Current as of March 31, 2022
22,568
Participating Communities
$766
Average Annual Premium
(Incl. Premium & Federal Policy Fee)
$1.26 Trillion
Total Coverage of NFIP Policies
4.805 Million
Number of NFIP Policies in Force
$17.8 Billion
Capacity to Pay Claims
$20.5 Billion
Outstanding Debt with Treasury
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NFIP Available Funds - as of 3/31/2022
The NFIP’s Available Resources provides information similar to a “Balance Sheet” used in the private sector. It is a snapshot of the program’s finances, including any prior period carryover for the given period.
| AVAILABLE RESOURCES ($ in Thousands) | Dec. 31, 2021 | Mar 31, 2022 |
|---|---|---|
| Flood Fund Balance | 5,735,064 | 6,517,524 |
| Unpaid Obligations | (878,473) | (786,591) |
| Unpaid Loss & Loss Adjustment (Claims) | (537,495) | (295,049) |
| Mandatory Sequestration | (74,000) | (74,000) |
| Flood Fund Available Resources | 4,245,096 | 5,361,885 |
| Reserve Fund Balance | 1,596,905 | 1,124,005 |
| Net Investments | 1,334,991 | 1,911,685 |
| Outstanding Obligations | (404,266) | (487,793) |
| Reserve Fund Available Resources | 2,527,629 | 2,547,898 |
| Remaining Borrowing Authority | 9,900,000 | 9,900,000 |
| NFIP Total Capacity to Pay Claims * | 16,672,725 | 17,809,782 |
* 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 $10B in losses.
Statements of Operations - as of 3/31/2022
National Flood Insurance Fund ($ in Thousands)
| REVENUE | FY 2021 | FY 2022 Q2 | FY 2022 YTD |
|---|---|---|---|
| Premium | 3,521,288 | 729,853 | 1,417,154 |
| Reinsurance | 0 | 0 | 0 |
| Federal Policy Fee | 187,760 | 37,782 | 76,747 |
| Other Revenue | 13,693 | 151 | 5,933 |
| Total Flood Fund Revenue | 3,722,741 | 767,786 | 1,499,834 |
| EXPENSES | FY 2021 | FY 2022 Q2 | FY 2022 YTD |
|---|---|---|---|
| Total Loss & Loss Adjustment (Claims) | 1,369,003 | 253,872 | 1,375,771 |
| Unpaid Loss & Loss Adjustment (Claims)* | 525,545 | (255,429) | (946,220) |
| Commissions | 59,330 | 11,986 | 24,298 |
| Write Your Own (WYO) Expense Allowance | 938,959 | 191,561 | 395,908 |
| Interest Paid on Debt | 356,813 | 70,884 | 143,343 |
| Floodplain Management & Mapping Activities | 223,427 | 28,198 | 28,198 |
| Flood Related Grant Activities | 239,305 | 21,602 | 23,828 |
| Other Expenses | 246,315 | 44,225 | 40,377 |
| Total Flood Fund Expenses | 3,958,697 | 366,899 | 1,128,158 |
| FLOOD FUND NET INCOME (LOSS)** | (235,956) | 400,887 | 371,676 |
National Flood Insurance Reserve Fund ($ in Thousands)
| REVENUE | FY 2021 | FY 2022 Q2 | FY 2022 YTD |
|---|---|---|---|
| Assessment | 613,150 | 126,426 | 296,773 |
| Surcharge | 307,965 | 63,404 | 150,000 |
| Return on Investment | 77,332 | 7,407 | 8,971 |
| Total Reserve Fund Revenue | 998,447 | 197,237 | 455,744 |
| EXPENSES | FY 2021 | FY 2022 Q2 | FY 2022 YTD |
|---|---|---|---|
| Total Loss & Loss Adjustment (Claims) | 0 | 0 | 0 |
| Reinsurance-Traditional | 198,193 | 48,979 | 91,941 |
| Reinsurance-ILS | 193,523 | 48,622 | 91,565 |
| Obligated But Not Expended | 51,990 | 83,526 | 160,211 |
| Total Reserve Fund Expenses | 443,706 | 175,127 | 343,717 |
| RESERVE FUND NET INCOME (LOSS) | 554,741 | 22,110 | 112,027 |
* 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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