Homeowners Insurance Industry Underwriting Expenses, 2015 (1)
Expense Percent of premiums
Losses and related expenses (2)  
Loss and loss adjustment expense (LAE) ratio 61.6%
    Incurred losses 52.5
    Defense and cost containment expenses incurred 1.5
    Adjusting and other expenses incurred 7.5
Operating expenses (3)  
Expense ratio 29.1%
    Net commissions and brokerage expenses incurred 12.6
    Taxes, licenses and fees 2.6
    Other acquisition and field supervision expenses incurred 8.6
    General expenses incurred 5.3
Dividends to policyholders (2) 0.5%
Combined ratio after dividends (4) 91.3%
(1) After reinsurance transactions. (2) As a percent of net premiums earned ($78.6 billion in 2015). (3) As a percent of net premiums written ($79.9 billion in 2015). (4) Sum of loss and LAE, expense and dividends ratios. Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.