Commission Factors

2021 A&O Factor Update

July 20, 2022

As you are probably aware, RMA determines the final industry factor for the 2021 A&O in October 2022. 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 $2,162,244,578 and the statutory cap of $1,283,432,191. The factor is developed from these numbers and is currently at 59.3564% ($1,283,432,191 / $2,162,244,578). The number is changing as more industry wide premiums are processed and/or adjusted for the 2021 year.

In 2021, we are currently paying commissions at 58.5%.

2022 A&O Factor Update

March 04, 2022

In 2022, we are currently paying commissions at 45.0%. 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.

Thank you,
NAU Country