2016 A&O Factor Update

January 20, 2017

As you are probably aware, RMA determines the final industry factor for the 2016 A&O in October 2017. 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 $1,608,705,597 and the statutory cap of $1,283,432,191. The factor is developed from these numbers and is currently at 79.7804% ($1,283,432,191 / $1,608,705,597). The number is changing as more industry wide premiums are processed and/or adjusted for the 2016 year.

In 2016, we are currently paying commissions at 77.0.

Thank you,