Homeowners Insurance Industry Underwriting Expenses, 2016 (1)


Expense Percent of premiums
Losses and related expenses (2)  
Loss and loss adjustment expense (LAE) ratio 63.8%
    Incurred losses 54.8
    Defense and cost containment expenses incurred 1.6
    Adjusting and other expenses incurred 7.4
Operating expenses (3)  
Expense ratio 28.9%
    Net commissions and brokerage expenses incurred 12.3
    Taxes, licenses and fees 2.6
    Other acquisition and field supervision expenses incurred 8.8
    General expenses incurred 5.3
Dividends to policyholders (2) 0.4%
Combined ratio after dividends (4) 93.1%
(1) After reinsurance transactions. (2) As a percent of net premiums earned ($81.1 billion in 2016). (3) As a percent of net premiums written ($81.2 billion in 2016). (4) Sum of loss and LAE, expense and dividends ratios. Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.