Property/Casualty Insurance Industry Underwriting Expenses, 2016 (1)
Expense Percent of premiums
Losses and related expenses (2)  
Loss and loss adjustment expense (LAE) ratio 72.3%
    Incurred losses 60.7
    Defense and cost containment expenses incurred 4.2
    Adjusting and other expenses incurred 7.4
Underwriting expenses (3)  
Expense ratio 27.8%
    Net commissions and brokerage expenses incurred 10.7
    Taxes, licenses and fees 2.5
    Other acquisition and field supervision expenses incurred 7.6
    General expenses incurred 7.0
Dividends to policyholders (2) 0.6%
Combined ratio after dividends (4) 100.6%
(1) After reinsurance transactions. (2) As a percent of net premiums earned ($528.6 billion in 2016). (3) As a percent of net premiums written ($533.5 billion in 2016). (4) Sum of loss and LAE, expense and dividends ratios. Note: Totals may not add due to rounding. Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.