Mortgage Loan Industry Experience Factor

TO:

Interested Parties

FROM:

NAIC

DATE:

December 1, 2006

SUBJECT:

Mortgage Loan Industry Experience Factor for the December 31, 2006 Annual Statement

The Average Industry Experience Factor (AvIEF) to be used for the December 31, 2006 annual statement is 0.008 percent.  The AvIEF is defined in the Asset Valuation Reserve section of the NAIC’s Quarterly and Annual Statement Instructions Life, Accident & Health for the year 2006. The IEF is an average of the mortgage data received at the NAIC for eight (8) previous quarters as follows:  

4th Quarter 2004

0.012%

1st Quarter 2005 

0.010%

2nd Quarter 2005

0.011%

3rd Quarter 2005

0.008%

4th Quarter 2005

0.007%

1st Quarter 2006

0.006%

2nd Quarter 2006 

0.005%

3rd Quarter 2006

0.004%

Average IEF

0.008%

 

Individual companies should utilize information from the same quarters in calculating their average Company’s Experience Factor (AvCEF).

 

Contact Dan Swanson of the NAIC by phone at (816) 783 - 8412 or by e-mail at DSwanson@naic.org with any questions concerning this factor.