Homeowners Insurance Industry Underwriting Expenses, 2020 (1)


Expense Percent of premiums
Losses and related expenses (2)  
Loss and loss adjustment expense (LAE) ratio 77.0%
    Incurred losses 67.5
    Defense and cost containment expenses incurred 1.8
    Adjusting and other expenses incurred 7.7
Operating expenses (3)  
Expense ratio 28.3%
    Net commissions and brokerage expenses incurred 12.3
    Taxes, licenses and fees 2.5
    Other acquisition and field supervision expenses incurred 7.9
    General expenses incurred 5.6
Dividends to policyholders (2) 0.5%
Combined ratio after dividends (4) 105.9%
(1) After reinsurance transactions. (2) As a percent of net premiums earned ($94.6 billion in 2020). (3) As a percent of net premiums written ($97.0 billion in 2020). (4) Sum of loss and LAE, expense and dividends ratios. Calculated from unrounded numbers. Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.