Property/Casualty Insurance Industry Underwriting Expenses, 2021 (1)


Expense Percent of premiums
Losses and related expenses (2)  
Loss and loss adjustment expense (LAE) ratio 87.1%
    Incurred losses 75.0
    Defense and cost containment expenses incurred 4.8
    Adjusting and other expenses incurred 7.4
Underwriting expenses (3)  
Expense ratio 32.1%
    Net commissions and brokerage expenses incurred 13.8
    Taxes, licenses and fees 2.8
    Other acquisition and field supervision expenses incurred 7.8
    General expenses incurred 7.8
Dividends to policyholders (2) 0.7%
Combined ratio after dividends (4) 119.9%
(1) After reinsurance transactions. (2) As a percent of net premiums earned ($687.5 billion in 2021). (3) As a percent of net premiums written ($713.9 billion in 2021) (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.