Commission Factors

2021 A&O Factor Update

January 12, 2021

In 2021, we will be begin paying commissions at 70.0%. The lower factor is due to the anticipated higher premium primarily on corn and soybeans. NAU will review the factor again at the end of February and adjust accordingly at that time.

2020 A&O Factor Update

January 20, 2021

As you are probably aware, RMA determines the final industry factor for the 2020 A&O in October 2021. We utilize this information to determine agent commissions. The factor changes monthly until that date. The January accounting report reflected industry uncapped A&O of $1,631,870,295 and the statutory cap of $1,283,432,191. The factor is developed from these numbers and is currently at 78.6479% ($1,283,432,191 / $1,631,870,295). The number is changing as more industry wide premiums are processed and/or adjusted for the 2020 year.

In 2020, we are currently paying commissions at 77.5%.

Thank you,
NAU Country