Homeowners Insurance Industry Losses And Underwriting Expenses, 2018 (1)


Expense Percent of premiums
Losses and related expenses (2)  
Loss and loss adjustment expense (LAE) ratio 73.9%
    Incurred losses 65.1
    Defense and cost containment expenses incurred 1.7
    Adjusting and other expenses incurred 7.1
Operating expenses (3)  
Expense ratio 28.7%
    Net commissions and brokerage expenses incurred 12.6
    Taxes, licenses and fees 2.7
    Other acquisition and field supervision expenses incurred 8.2
    General expenses incurred 5.3
Dividends to policyholders (2) 0.5%
Combined ratio after dividends (4) 103.0%
(1) After reinsurance transactions. (2) As a percent of net premiums earned ($86.3 billion in 2018). (3) As a percent of net premiums written ($88.9 billion in 2018). (4) Sum of loss and LAE, expense and dividends ratios. Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.