Property/Casualty Insurance Industry Underwriting Expenses, 2017 (1)


Expense Percent of premiums
Losses and related expenses (2)  
Loss and loss adjustment expense (LAE) ratio 75.9%
     Incurred losses 64.2
     Defense and cost containment expenses incurred 4.3
     Adjusting and other expenses incurred 7.4
Underwriting expenses (3)  
Expense ratio 27.0%
     Net commissions and brokerage expenses incurred 10.5
     Taxes, licenses and fees 2.4
     Other acquisition and field supervision expenses incurred 7.1
     General expenses incurred 7.0
Dividends to policyholders (2) 0.6%
Combined ratio after dividends (4) 103.6%
(1) After reinsurance transactions. (2) As a percent of net premiums earned ($546.0 billion in 2017). (3) As a percent of net premiums written ($558.2 billion in 2017). (4) Sum of loss and LAE, expense and dividends ratios. Note: Totals may not add up due to rounding. Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.