Property/Casualty Insurance Industry Losses And Underwriting Expenses, 2018 (1)


Expense Percent of premiums
Losses and related expenses (2)  
Loss and loss adjustment expense (LAE) ratio 71.3%
    Incurred losses 60.6
    Defense and cost containment expenses incurred 4.1
    Adjusting and other expenses incurred 6.6
Underwriting expenses (3)  
Expense ratio 27.1%
    Net commissions and brokerage expenses incurred 11.5
    Taxes, licenses and fees 2.4
    Other acquisition and field supervision expenses incurred 6.7
    General expenses incurred 6.5
Dividends to policyholders (2) 0.6%
Combined ratio after dividends (4) 99.0%
(1) After reinsurance transactions. (2) As a percent of net premiums earned ($598.6 billion in 2018). (3) As a percent of net premiums written ($617.0 billion in 2018). (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.