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 FY2022
Statistics
Current as of Sept. 30, 2022
22,594
Participating Communities
$935
Average Annual Premium
(Incl. Premium & Federal Policy Fee)
$1.28 Trillion
Total Coverage of NFIP Policies
4.719 Million
Number of NFIP Policies in Force
$16.1 Billion
Capacity to Pay Claims
$20.5 Billion
Outstanding Debt with Treasury
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NFIP Available Funds - as of 9/30/2022
The NFIP’s Available Resources provides information similar to a “Balance Sheet” used in the private sector. It is a snapshot of the program’s finances, including any prior period carryover for the given period.
| AVAILABLE RESOURCES ($ in Thousands) | June 30, 2022 | Sept. 30, 2022 |
|---|---|---|
| Flood Fund Balance | 7,077,574 | 7,458,097 |
| Unpaid Obligations | (864,556) | 2,492,673 |
| Unpaid Loss & Loss Adjustment (Claims) | (244,722) | (6,634,107) |
| Mandatory Sequestration | (74,499) | (74,499) |
| Flood Fund Available Resources | 5,893,796 | 3,242,164 |
| Reserve Fund Balance | 740,560 | 840,764 |
| Net Investments | 2,415,671 | 2,421,560 |
| Outstanding Obligations | (410,271) | (317,506) |
| Reserve Fund Available Resources | 2,745,960 | 2,944,818 |
| Remaining Borrowing Authority | 9,900,000 | 9,900,000 |
| NFIP Total Capacity to Pay Claims * | 18,539,756 | 16,086,983 |
* FEMA’s reinsurance placements augment the NFIP’s Available Resources. After qualifying losses for a single event exceed $4 billion, the NFIP may collect up to $2.48 billion should the event reach $10B in losses.
Statement of Operations - as of 9/30/2022
National Flood Insurance Fund ($ in Thousands)
| REVENUE | FY 2021 | FY 2022 Q4 | FY 2022 YTD |
|---|---|---|---|
| Premium | 3,521,288 | 863,100 | 3,244,810 |
| Reinsurance | 0 | 0 | 0 |
| Federal Policy Fee | 187,760 | 57,192 | 193,483 |
| Other Revenue | 13,693 | 7,303 | 15,870 |
| Total Flood Fund Revenue | 3,722,741 | 927,595 | 3,454,163 |
| EXPENSES | FY 2021 | FY 2022 Q4 | FY 2022 YTD |
|---|---|---|---|
| Total Loss & Loss Adjustment (Claims) | 1,369,003 | 138,317 | 1,602,835 |
| Incurred But Not Reported Claims | 525,545 | 6,433,141 | 5,400,772 |
| Commissions* | 59,330 | 16,460 | 56,461 |
| Write Your Own (WYO) Expense Allowance* | 938,959 | 186,610 | 837,669 |
| Interest on Debt | 356,813 | 78,976 | 300,437 |
| Floodplain Management & Mapping Activities | 223,427 | 60,520 | 177,793 |
| Flood Related Grant Activities | 239,305 | 130,267 | 181,063 |
| Other Expenses | 246,315 | (3,402,876) | (3,227,427) |
| Total Flood Fund Expenses | 3,958,697 | 3,641,415 | 5,329,603 |
| FLOOD FUND NET INCOME (LOSS)** | (235,956) | (2,713,820) | (1,875,440) |
National Flood Insurance Reserve Fund ($ in Thousands)
| REVENUE | FY 2021 | FY 2022 Q4 | FY 2022 YTD |
|---|---|---|---|
| Assessment | 613,150 | 171,162 | 603,212 |
| Surcharge | 307,965 | 91,090 | 311,234 |
| Return on Investment | 77,332 | 2,360 | 13,283 |
| Total Reserve Fund Revenue | 998,447 | 264,612 | 927,729 |
| EXPENSES | FY 2021 | FY 2022 Q4 | FY 2022 YTD |
|---|---|---|---|
| Total Loss & Loss Adjustment (Claims) | 0 | 0 | 0 |
| Reinsurance-Traditional | 198,193 | 42,979 | 177,899 |
| Reinsurance-ILS | 193,523 | 48,355 | 187,850 |
| Obligations and Other Expenses | 51,990 | -18,544 | 64,145 |
| Total Reserve Fund Expenses | 443,706 | 72,790 | 429,894 |
| RESERVE FUND NET INCOME (LOSS) | 554,741 | 191,822 | 497,835 |
* The FY 2022 Commissions and Taxes of Agents (Commissions and WYO Expense Allowance) include $17,387 of FY 2021 expenses resulting from the typical two-month lag time between when financial data is received and when it is reported on the financial statements.
** 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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