Homeowners Insurance Industry Losses And Underwriting Expenses, 2019 (1)


Expense Percent of premiums
Losses and related expenses (2)  
Loss and loss adjustment expense (LAE) ratio 68.7%
    Incurred losses 59.8
    Defense and cost containment expenses incurred 1.7
    Adjusting and other expenses incurred 7.1
Operating expenses (3)  
Expense ratio 28.6%
    Net commissions and brokerage expenses incurred 12.3
    Taxes, licenses and fees 2.6
    Other acquisition and field supervision expenses incurred 8.2
    General expenses incurred 5.5
Dividends to policyholders (2) 0.6%
Combined ratio after dividends (4) 97.9%
(1) After reinsurance transactions. (2) As a percent of net premiums earned ($90.5 billion in 2019). (3) As a percent of net premiums written ($93.0 billion in 2019). (4) Sum of loss and LAE, expense and dividends ratios. Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.