HOMEOWNERS INSURANCE INDUSTRY UNDERWRITING EXPENSES, 2014 (1)
Expense Percent of premiums
LOSSES AND RELATED EXPENSES (2)  
Loss and loss adjustment expense (LAE) ratio 62.1%
    Incurred losses 53.0
    Defense and cost containment expenses incurred 1.6
    Adjusting and other expenses incurred 7.4
OPERATING EXPENSES (3)  
Expense ratio 29.0%
    Net commissions and brokerage expenses incurred 12.7
    Taxes, licenses and fees 2.6
    Other acquisition and field supervision expenses incurred 8.5
    General expenses incurred 5.2
DIVIDENDS TO POLICYHOLDERS (2) 0.5%
COMBINED RATIO AFTER DIVIDENDS (4) 91.6%
(1) After reinsurance transactions. (2) As a percent of net premiums earned ($75.3 billion in 2014). (3) As a percent of net premiums written ($77.9 billion in 2014). (4) Sum of loss and LAE, expense and dividends ratios. Source: SNL Financial LC.