Homeowners Insurance Industry Underwriting Expenses, 2017 (1)


Expense Percent of premiums
Losses and related expenses (2)  
Loss and loss adjustment expense (LAE) ratio 78.8%
    Incurred losses 69.0
    Defense and cost containment expenses incurred 1.7
    Adjusting and other expenses incurred 8.1
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 8.5
    General expenses incurred 5.5
Dividends to policyholders (2) 0.4%
Combined ratio after dividends (4) 108.1%
(1) After reinsurance transactions. (2) As a percent of net premiums earned ($81.8 billion in 2017). (3) As a percent of net premiums written ($82.8 billion in 2017). (4) Sum of loss and LAE, expense and dividends ratios. Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute