2021 A&O Factor Update
March 08, 2021
In 2021, we are currently paying commissions at 59.0%. The lower factor is due to the higher premium primarily on corn and soybeans. The lower factor multiplied by the higher premiums will keep agencies whole if they are in a corn or a soy area but others may be disproportionately affected. NAU will continue to review the factor and adjust accordingly.
2020 A&O Factor Update
March 23, 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 March accounting report reflected industry uncapped A&O of $1,632,022,495 and the statutory cap of $1,283,432,191. The factor is developed from these numbers and is currently at 78.6405% ($1,283,432,191 / $1,632,022,495). 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%.