As a result of the effects of COVID-19, many insurers issued refunds or policy credits to policyholders during 2020. The National Association of Insurance Commissioners (NAIC) allowed insurers the choice of how to report these refunds, subject to certain restrictions, along four main lines:
AM Best makes no normalization adjustments to the original data reported by companies presented herein. Note, however, that the effects of the different accounting methodologies impact not only data presentation but also related analytical ratios. AM Best has separately reported on the accounting methods used and the associated values reported for each by company, and provides the normalized data and/or the means for normalizing the data there.
Please refer to our Best's Commentary, published April 20, 2021, for more information: P/C Insurers Return Nearly $13 Billion in Premiums as COVID-19 Reduces Exposure.