Property/Casualty Insurance Industry Underwriting Expenses, 2015 (1)
Expense Percent of premiums
Losses And Related Expenses (2)  
Loss and loss adjustment expense (LAE) ratio 69.3%
    Incurred losses 57.4
    Defense and cost containment expenses incurred 4.5
    Adjusting and other expenses incurred 7.4
Underwriting Expenses (3)  
Expense ratio 27.9%
    Net commissions and brokerage expenses incurred 10.9
    Taxes, licenses and fees 2.5
    Other acquisition and field supervision expenses incurred 7.6
    General expenses incurred 6.9
Dividends To Policyholders (2) 0.6%
Combined Ratio After Dividends (4) 97.7%
(1) After reinsurance transactions. (2) As a percent of net premiums earned ($511.5 billion in 2015). (3) As a percent of net premiums written ($519.8 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.