The NAIC Annual Statement – Property and Casualty is the yearly statutory financial report that every licensed property and casualty insurer must file to show its financial condition to state insurance regulators. It is filed through the National Association of Insurance Commissioners electronic system and with each state where the company holds a license, and it is due March 1 for the prior calendar year.
This filing is how regulators check that an insurance company can pay its claims. A late or wrong filing can lead to fines, a forced examination, or even the loss of a company’s license to sell insurance. The NAIC processes thousands of these statements each year, and a single failed cross-check edit can stop the whole filing from being accepted, so accuracy matters from the very first page.
Here is what you will learn in this guide:
- 📋 What the Property and Casualty Annual Statement is and which companies must file it
- 🗂️ The exact documents and numbers you must gather before you start
- ✍️ A line-by-line walkthrough of every major page and schedule, with sample entries
- 🏢 Three full company examples that show what real filers enter
- ⚠️ The mistakes that get statements rejected and how to avoid them
What the Form Is and Who Must File It
The Property and Casualty Annual Statement, often called the “yellow book” or the “blank,” is a standard reporting package the NAIC creates each year. It pulls together a company’s assets, debts, income, and detailed schedules into one large document. Every state uses the same national form, which lets regulators compare companies across the country using the same rules. The current version is the 2025 Annual Statement Blank – Property/Casualty, and you should confirm the data year printed at the top before you start.
Any insurer licensed to write property and casualty business in a state must file this statement. This includes companies that write auto, home, commercial, workers’ compensation, and similar coverage. It also includes U.S. branches of alien (non-U.S.) insurers that do business here, and reinsurers that assume P&C risk.
The form is required by each state’s insurance code, and most states adopt the NAIC instructions by reference. The agency that receives it is your state insurance department, with a copy going to the NAIC central database. The statement is prepared using Statutory Accounting Principles (SAP), which are stricter than the GAAP rules public companies use, because regulators care most about whether you can pay claims today, not future earnings. The penalty for not filing on time can include daily fines, suspension, or revocation of the company’s certificate of authority.
Before You Start: Documents and Information You Need
Filling out this statement is far easier when every number is ready before you open the software. The blank pulls from your full year of accounting records, and a missing item can hold up the entire filing. Gather these items first.
- Year-end trial balance. This is the source for almost every dollar figure; without a closed and reconciled trial balance your assets and liabilities will not balance.
- NAIC company code and group code. These ID numbers route your filing to the right record; a wrong code can attach your data to another company.
- Federal Employer Identification Number (FEIN). The NAIC and IRS cross-check this; a mismatch flags the filing for review.
- Prior year Annual Statement. Many lines need last year’s figure in the prior-year column, and a wrong prior figure breaks the year-over-year edits.
- Loss and loss adjustment expense reserve data by line and accident year. Schedule P needs this detail; missing accident-year data makes the schedule impossible to complete.
- Reinsurance contracts and ceded/assumed balances. Schedule F depends on these; missing them understates or overstates your recoverables.
- Investment records (bonds, stocks, real estate, cash). Schedules A, B, BA, D, DA, and E need cost, fair value, and CUSIP details for each holding.
- Actuarial Opinion from your appointed actuary. This signed opinion supports your reserves and is a required attachment.
- Officer and director names, titles, and signatures. The Jurat page cannot be completed without them.
- Premium data by line of business and by state. This feeds the Underwriting and Investment Exhibit and Schedule T.
If any one item is missing, the software will either block the page or produce an edit error that prevents submission, so treat this checklist as a hard gate before drafting.
Where to Get the Form and How to Access It
You do not type this statement into a blank PDF. Property and casualty insurers prepare it inside NAIC-approved vendor software that builds the official blank and runs the required validation edits. You can review the structure and instructions on the NAIC Industry Financial Filing page, which hosts the Annual Statement Instructions and the blanks revisions.
The completed data is submitted electronically through the NAIC’s filing system, and you manage fees and confirmations inside NAIC Account Manager. Most states accept the NAIC electronic filing to satisfy their own requirement, but many also want extra state-specific pages.
To buy the official printed blanks and instruction books, use the NAIC Publications store, where the 2025 Property/Casualty blank and instructions are listed. You should download the latest instruction book each year because the Blanks (E) Working Group changes lines, adds disclosures, and renumbers items often. If you use last year’s layout, your line references can be wrong and your data can land in the wrong cell. The revision date on the blank tells you which version is current, so check it before you begin.
Step-by-Step: How to Fill Out the Property and Casualty Annual Statement Line by Line
This is the heart of the filing. The blank moves in a set order: the Jurat page, the Assets page, the Liabilities, Surplus and Other Funds page, the Statement of Income, the Cash Flow page, the Underwriting and Investment Exhibit, and then the lettered Schedules A through Y. Each major page below gets its own walkthrough. Use the exact line numbers printed on the official blank, because regulators and the validation edits expect them.
Jurat Page (Page 1)
The Jurat page asks for the company’s identity and the sworn signatures of its officers. In plain English, this page says “here is who we are, and we swear the numbers are true.”
To answer it, enter the full legal company name exactly as licensed, the home office and main administrative addresses, the state of domicile, the NAIC company code, the NAIC group code, and the FEIN. Then have the required officers, usually the president, secretary, and treasurer, sign, and have the signatures notarized where the state requires it.
For example, Sunrise Mutual Insurance Company enters its NAIC code 10123, group code 0455, and FEIN 47-1234567, and its president Maria Lopez signs and dates the page.
A common edge case is a company with no group affiliation; in that case you enter 0000 or leave the group code per the instructions rather than guessing a number. A frequent mistake is signing without notarization where the state demands it, which makes the entire filing invalid even if every number is correct. Many filers wrongly believe the Jurat is just a cover sheet, but it is a sworn legal document, and a false statement here can carry personal liability for the signing officers.
Assets Page (Page 2)
The Assets page asks what the company owns. It lists bonds, stocks, cash, premiums due, reinsurance recoverables, and other admitted assets.
To answer it, report each asset class on its printed line in Column 1 (gross), subtract nonadmitted amounts in Column 2, and show the net admitted asset in Column 3. Line 28 is the total admitted assets, and it must tie to other pages.
For example, Sunrise Mutual reports bonds of $45,000,000 on Line 1, Column 3, and total admitted assets of $60,000,000 on Line 28.
An edge case is an asset that is partly nonadmitted, such as overdue agents’ balances; you admit the current portion and nonadmit the aged portion. A common mistake is reporting an asset at full value that statutory rules say is nonadmitted, which overstates surplus and triggers an edit. People often think any asset they own counts, but SAP excludes many “soft” assets like furniture and most receivables over 90 days old.
Liabilities, Surplus and Other Funds Page (Page 3)
This page asks what the company owes and what is left over for policyholders. The top section lists liabilities such as loss reserves and unearned premium, and the bottom section shows surplus.
To answer it, enter loss reserves on Line 1, loss adjustment expense reserves on Line 3, unearned premium on Line 9, and other payables on their lines, then total liabilities on Line 26. Below that, report capital and surplus, ending with surplus as regards policyholders on Line 37.
For example, Sunrise Mutual enters loss reserves of $22,000,000 on Line 1 and surplus as regards policyholders of $18,000,000 on Line 37.
An edge case is a company holding ceded reserves; those net against the gross reserve based on the statement basis. A common mistake is forgetting that total assets must equal total liabilities plus surplus, which produces an out-of-balance error that blocks filing. Filers often assume surplus is “profit,” but surplus is the cushion regulators watch most, and a thin surplus can trigger Risk-Based Capital action.
Statement of Income (Page 4)
The Statement of Income asks how the company performed during the year. It shows premiums earned, losses incurred, expenses, investment income, and net income.
To answer it, enter premiums earned on Line 1, losses incurred on Line 2, loss adjustment expenses on Line 3, and underwriting expenses on Line 4, then carry down through investment income to net income at the bottom.
For example, Sunrise Mutual reports premiums earned of $40,000,000 on Line 1 and net income of $2,500,000 near the bottom of the page.
An edge case is a company with large realized capital gains; those flow through a specific investment line, not the underwriting lines. A common mistake is mixing earned and written premium, which throws off the loss ratio regulators calculate. People often confuse premium “written” with premium “earned,” but only the earned portion belongs on this income page.
Cash Flow (Page 5)
The Cash Flow page asks how cash moved during the year. It groups cash into operations, investments, and financing.
To answer it, report premiums collected, losses paid, and expenses paid in the operating section, then purchases and sales of investments in the investing section, and capital changes in the financing section, ending with the net change in cash.
For example, Sunrise Mutual shows net cash from operations of $3,000,000 and an ending cash balance that ties to the Assets page cash line.
An edge case is a company that moved money between affiliated entities; those transfers need careful classification to avoid double counting. A common mistake is an ending cash figure that does not match the Assets page, which is an instant edit failure. Many filers think cash flow is optional detail, but regulators use it to spot companies paying claims faster than cash is coming in.
Underwriting and Investment Exhibit
This exhibit asks for the detail behind premiums, losses, and expenses by line of business. It is split into parts, including Part 1B – Premiums Written, which feeds your filing fee calculation.
To answer it, report premiums written by line in Part 1B, with direct premium in Column 1 and net premium in Column 3, and total on Line 35. Then complete the loss and expense parts using the same line-of-business grid.
For example, Sunrise Mutual enters direct premiums written of $42,000,000 on Part 1B, Line 35, Column 1, which sets its NAIC filing fee base.
An edge case is a company writing a brand-new line mid-year; you still report it on its line even with only a partial year of data. A common mistake is netting reinsurance incorrectly between Columns 1 and 3, which distorts both the exhibit and the fee. Filers often overlook that Line 35, Column 1 or 3 is the exact figure the NAIC uses to bill them, so an error here changes the invoice.
Schedule F – Reinsurance
Schedule F asks for every reinsurance relationship, both business you cede away and business you assume. It is one of the most error-prone schedules in the entire blank.
To answer it, list each assuming and ceding company with its name, NAIC code, and the ceded or assumed balances, including recoverables and any collateral, then total the schedule and carry the provision for reinsurance to the liabilities page.
For example, Coastal Commercial Insurance lists Global Re with recoverables of $5,000,000 and shows collateral held against an unauthorized reinsurer.
An edge case is a recoverable from an unauthorized or slow-paying reinsurer; that triggers a penalty calculation called the provision for reinsurance. A common mistake is omitting collateral for an unauthorized reinsurer, which inflates the penalty and lowers surplus. Filers often assume all reinsurance is “good” reinsurance, but recoverables from unrated or unauthorized reinsurers can be heavily discounted by the formula.
Schedule P – Loss Reserves
Schedule P asks for losses and loss adjustment expenses by line of business and by accident year, going back ten years. It is how regulators test whether your reserves have been strong or weak over time.
To answer it, complete the parts for each line, entering paid and incurred losses by accident year, and let the schedule build the development triangles that show how past estimates changed.
For example, Coastal Commercial fills the workers’ compensation section with ten accident years of paid and case-incurred losses, and the schedule shows whether prior reserves developed up or down.
An edge case is a company with a discontinued line; you still must report its runoff in Schedule P until the claims close. A common mistake is grouping losses in the wrong line of business, which breaks the development history and draws actuarial questions. Filers often think Schedule P only matters to actuaries, but adverse development shown here can prompt a regulator to order higher reserves.
Schedule T – Premiums by State
Schedule T asks where you write business. It lists premiums by each state and territory.
To answer it, enter direct premiums written in each jurisdiction where you are licensed, mark your licensing status, and total all states on the final line.
For example, Coastal Commercial reports premium in California, Texas, and Arizona, and the state totals tie to the Underwriting and Investment Exhibit.
An edge case is premium written in a state where you are surplus lines only; that has its own column and treatment. A common mistake is reporting premium in a state where you are not licensed, which can prompt a market-conduct inquiry. Filers often forget that the Schedule T total must match the direct premium elsewhere in the blank, and a mismatch fails an edit.
Schedule Y – Holding Company Structure
Schedule Y asks how the company fits into its larger group. It maps parents, subsidiaries, and affiliates.
To answer it, complete Part 1 with an organizational chart of the group and Part 2 with the detail of transactions and ownership percentages among affiliates.
For example, Anchor U.S. Branch shows its alien parent at the top and lists each affiliated service agreement in Part 2.
An edge case is a company owned by individuals rather than a holding company; you still report the controlling persons. A common mistake is leaving an affiliate off the chart, which conflicts with the holding company act filings and draws scrutiny. Filers often think Schedule Y is just a picture, but regulators use it to find hidden affiliate risk and improper related-party deals.
Three Filled-Out Examples Using Real Scenarios
Below are three common filer types walked through the major sections. Each shows what the named company enters so you can picture your own filing.
Scenario 1: Sunrise Mutual, a Small Single-State Personal Auto Insurer
| Form Section | What Sunrise Mutual Enters |
|---|---|
| Jurat – NAIC code | 10123 |
| Jurat – signing officer | President Maria Lopez, notarized |
| Assets – total admitted (Line 28) | $60,000,000 |
| Liabilities – loss reserves (Line 1) | $22,000,000 |
| Liabilities – surplus (Line 37) | $18,000,000 |
| Statement of Income – premiums earned (Line 1) | $40,000,000 |
| Underwriting Exhibit – Part 1B, Line 35, Col 1 | $42,000,000 |
| Schedule T – states reported | California only |
Scenario 2: Coastal Commercial Insurance, a Multi-State Carrier with Reinsurance
| Form Section | What Coastal Commercial Enters |
|---|---|
| Jurat – group code | 0455 |
| Assets – bonds (Line 1) | $120,000,000 |
| Liabilities – loss adjustment reserves (Line 3) | $15,000,000 |
| Schedule F – reinsurer | Global Re, recoverable $5,000,000 |
| Schedule P – key line | Workers’ compensation, 10 accident years |
| Schedule T – states | California, Texas, Arizona |
| Underwriting Exhibit – net premium (Col 3) | $95,000,000 |
| Statement of Income – net income | $6,200,000 |
Scenario 3: Anchor U.S. Branch, a U.S. Branch of an Alien Insurer
| Form Section | What Anchor U.S. Branch Enters |
|---|---|
| Jurat – company type | U.S. Branch of alien insurer |
| Assets – trusteed assets reported | $80,000,000 |
| Liabilities – surplus (Line 37) | $25,000,000 |
| Schedule F – assumed business | From non-affiliated cedents |
| Schedule Y – Part 1 | Alien parent at top of chart |
| Statement of Income – U.S. business only | $30,000,000 premiums earned |
| Schedule T – states | Multi-state, licensed |
| Actuarial Opinion attached | Yes, signed by appointed actuary |
How to File the Completed Form
Property and casualty insurers file the Annual Statement electronically. After your software produces the blank and passes the validation edits, you submit the electronic data to the NAIC, which shares it with your states. Use the NAIC Account Manager portal to confirm the filing and to pay your fee.
The annual statement database filing fee is due March 1, 2026, and the combined Property and Casualty statement fee is due May 1, 2026. For an individual filing, the fee uses a formula of your premium base level times 0.000030, with a minimum fee of $240, an individual cap of $108,817, and a group cap of $544,085. The combined Property and Casualty filing fee is a flat $690 and does not use a premium base, per the NAIC filing fee schedule.
You can pay several ways. You can pay online through Account Manager, by ACH or wire to UMB (routing #101000695, account #9870877295, referencing your company code), or by check made payable to the NAIC and mailed to NAIC, Attn: Database Filing Fees, P.O. Box 87-9135, Kansas City, MO 64187-9135. Check payments must be postmarked by the deadline. Keep your filing confirmation, your remittance advice, and proof of payment as your proof of filing.
Many states want extra pages beyond the national form. New York, for example, requires a state supplement that you can find on the New York property insurer instructions page, and you submit it through the DFS Portal if the NAIC filing alone does not cover it. Always check each domiciliary and licensing state’s checklist for added forms, fees, and addresses.
What Happens After You File
Once your statement is submitted, the NAIC runs its database edits and your states begin their review. Regulators use the data to calculate your Risk-Based Capital ratio and to run financial ratio tests that flag companies for closer review. A clean filing usually moves through without contact.
If your numbers raise a question, an analyst from your domiciliary state may send a follow-up letter asking for explanation or correction. Weak surplus, adverse Schedule P development, or large reinsurance recoverables are common triggers. In serious cases the state can order a financial examination, require a corrective plan, or take regulatory action against the company.
Your filing also feeds public and industry databases, so rating agencies, reinsurers, and analysts may review your results. A late filing is recorded and can damage your standing with regulators in every state where you are licensed. For these reasons, filers treat the period right after submission as a time to be ready to answer questions quickly and clearly.
Mistakes to Avoid When Filling Out the Form
Each line on this blank is a chance to make an error, and many mistakes stop the filing cold. Watch for these.
- Filing an out-of-balance statement, which means total assets do not equal liabilities plus surplus and the edit blocks submission.
- Using the wrong year’s instruction book, which puts data in the wrong line and fails cross-checks.
- Entering the wrong NAIC company code, which attaches your data to another company’s record.
- Skipping notarization on the Jurat page, which makes the sworn statement invalid.
- Reporting nonadmitted assets at full value, which overstates surplus and triggers an edit.
- Mixing written and earned premium, which distorts loss ratios regulators rely on.
- Omitting collateral for unauthorized reinsurers in Schedule F, which inflates the reinsurance penalty.
- Grouping losses in the wrong line in Schedule P, which breaks the development history.
- Reporting premium in Schedule T for a state where you are not licensed, which invites a market-conduct inquiry.
- Leaving an affiliate off Schedule Y, which conflicts with your holding company filings.
- Missing the March 1 deadline, which can bring daily fines and license action.
- Failing to attach the Actuarial Opinion, which leaves your reserves unsupported and incomplete.
Do’s and Don’ts
These quick rules keep your filing clean and on time.
- Do reconcile your trial balance before you start, because every figure flows from it and errors compound.
- Do download the current year’s instructions, because lines and disclosures change each year.
- Do run the validation edits and clear every error, because an unresolved edit blocks submission.
- Do keep your filing confirmation and payment proof, because they are your only evidence of timely filing.
- Do check each state’s checklist, because many want extra supplements beyond the national form.
- Do have your appointed actuary sign the opinion early, because a missing opinion delays the whole package.
- Don’t guess at codes or premium figures, because wrong inputs misroute data and misstate your fee.
- Don’t report assets your state treats as nonadmitted, because it overstates surplus.
- Don’t wait until late February, because last-minute edit errors are hard to fix under deadline pressure.
- Don’t ignore prior-year columns, because year-over-year edits compare them.
- Don’t net reinsurance carelessly, because Schedule F mistakes lower surplus through penalties.
- Don’t assume the NAIC filing covers every state, because state supplements are often separate.
Pros and Cons of Filing on Your Own vs. With Help
Many smaller carriers debate whether to prepare the statement in-house or hire an outside accounting firm. Here is how the two approaches compare.
Pros of filing in-house
- You keep full control of your data and timing, so nothing waits on an outside firm.
- You save the professional fees an outside preparer charges.
- Your staff learns the blank deeply, which helps with audits and exams.
- You can fix small errors right away without waiting for a vendor.
- You build year-round familiarity that makes each future filing faster.
Cons of filing in-house
- You carry full responsibility for complex schedules like P and F, where errors are costly.
- You must keep up with yearly instruction changes on your own.
- A small staff can be overwhelmed near the March deadline.
- Missing a state-specific supplement is easy without outside guidance.
- Wrong actuarial or reinsurance treatment can draw regulatory action you might have avoided with expert help.
FAQs
Do all property and casualty insurers have to file this statement?
Yes. Every insurer licensed to write property and casualty business in a state must file the NAIC Annual Statement for the prior calendar year, including U.S. branches of alien insurers.
Is the Annual Statement due March 1?
Yes. The Property and Casualty Annual Statement and its database filing fee are due March 1, while the combined statement fee is due May 1.
Do I file this on paper?
No. Property and casualty insurers prepare and submit the statement electronically through NAIC-approved vendor software and the NAIC filing system, not on a blank paper form.
Is the combined Property and Casualty filing fee based on premium?
No. The combined Property and Casualty filing fee is a flat $690 and is not calculated from a premium base, unlike the individual filing fee.
Do I enter premiums written on Part 1B, Line 35?
Yes. Part 1B, Line 35, Column 1 or Column 3 reports total premiums written and sets the premium base the NAIC uses to calculate your individual filing fee.
Do I put the group code on the Jurat page if I have no group?
No. A company with no group affiliation does not invent a group code; follow the instructions, which generally call for entering the default value rather than guessing.
Do loss reserves go on Line 1 of the Liabilities page?
Yes. Losses go on Line 1 and loss adjustment expense reserves go on Line 3 of the Liabilities, Surplus and Other Funds page.
Do I report nonadmitted assets on the Assets page?
Yes. You report the gross amount in Column 1, the nonadmitted amount in Column 2, and the net admitted asset in Column 3, so only the admitted portion counts toward surplus.
Do I need to show collateral for an unauthorized reinsurer in Schedule F?
Yes. You must report collateral held against unauthorized reinsurers, because the provision for reinsurance penalty depends on it and missing collateral raises the penalty.
Does Schedule P go back ten years?
Yes. Schedule P reports paid and incurred losses by line of business across ten accident years to show how reserve estimates developed over time.
Do I need an Actuarial Opinion with the filing?
Yes. A signed Statement of Actuarial Opinion from your appointed actuary supports your reserves and is a required part of the annual filing package.
Does the NAIC filing satisfy every state’s requirement?
No. Many states, such as New York, require an added state supplement or extra forms filed through their own portal in addition to the national NAIC filing.
Do total assets have to equal liabilities plus surplus?
Yes. The statement must balance, and an out-of-balance condition produces a validation edit that prevents the filing from being accepted.
Do I use the prior year’s instruction book to save time?
No. You must use the current year’s instructions, because the Blanks Working Group changes lines and disclosures each year and old references misplace your data.
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