Commission Factors

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

July 21, 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 July accounting report reflected industry uncapped A&O of $1,632,452,121 and the statutory cap of $1,283,432,191. The factor is developed from these numbers and is currently at 78.6198% ($1,283,432,191 / $1,632,452,121). 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