HOMEOWNERS INSURANCE INDUSTRY UNDERWRITING EXPENSES, 2013 (1)
Expense Percent of premiums
LOSSES AND RELATED EXPENSES (2)  
Loss and loss adjustment expense (LAE) ratio 59.6%
    Incurred losses 50.5
    Defense and cost containment expenses incurred 1.5
    Adjusting and other expenses incurred 7.6
OPERATING EXPENSES (3)  
Expense ratio 29.5%
    Net commissions and brokerage expenses incurred 12.6
    Taxes, licenses and fees 2.7
    Other acquisition and field supervision expenses incurred 9.0
    General expenses incurred 5.2
DIVIDENDS TO POLICYHOLDERS (2) 0.5%
COMBINED RATIO AFTER DIVIDENDS (4) 89.6%
(1) After reinsurance transactions. (2) As a percent of net premiums earned ($70.3 billion in 2013). (3) As a percent of net premiums written ($72.8 billion in 2013). (4) Sum of loss and LAE, expense and dividends ratios. Source: SNL Financial LC.