Property/Casualty Insurance Industry Underwriting Expenses, 2019 (1)


Expense Percent of premiums
Losses and related expenses (2)  
Loss and loss adjustment expense (LAE) ratio 70.2%
    Incurred losses 59.2
    Defense and cost containment expenses incurred 4.4
    Adjusting and other expenses incurred 6.6
Underwriting expenses (3)  
Expense ratio 27.8%
    Net commissions and brokerage expenses incurred 11.3
    Taxes, licenses and fees 2.4
    Other acquisition and field supervision expenses incurred 7.0
    General expenses incurred 7.1
Dividends to policyholders (2) 0.9%
Combined ratio after dividends (4) 98.9%
(1) After reinsurance transactions. (2) As a percent of net premiums earned ($574.3 billion in 2019). (3) As a percent of net premiums written ($585.0 billion in 2019). (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.