Current Table

Homeowners Insurance Industry Underwriting Expenses, 2015 (1)
Expense Percent of premiums
Losses and related expenses (2)  
Loss and loss adjustment expense (LAE) ratio 61.6%
    Incurred losses 52.5
    Defense and cost containment expenses incurred 1.5
    Adjusting and other expenses incurred 7.5
Operating expenses (3)  
Expense ratio 29.1%
    Net commissions and brokerage expenses incurred 12.6
    Taxes, licenses and fees 2.6
    Other acquisition and field supervision expenses incurred 8.6
    General expenses incurred 5.3
Dividends to policyholders (2) 0.5%
Combined ratio after dividends (4) 91.3%

(1) After reinsurance transactions.
(2) As a percent of net premiums earned ($78.6 billion in 2015).
(3) As a percent of net premiums written ($79.9 billion in 2015).
(4) Sum of loss and LAE, expense and dividends ratios.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

 
HOMEOWNERS MULTIPLE PERIL INSURANCE UNDERWRITING SNAPSHOT, 2010 (1)
Net premiums earned ($000) $59,721,095
Components of underwriting, as a percent
of net premiums earned
 
     Incurred losses 66.4%
     Loss adjustment expenses 10.1
     Total loss and loss adjustment expenses 76.5
     Commissions and brokerage expenses incurred 13.1
     Other underwriting expenses incurred 17.7
     Total underwriting expenses incurred 30.8
     Dividends to policyholders  0.5
     Investment gains on funds attributable to
     insurance transactions and other income
3.1
Combined ratio after dividends 107.0
Overall operating ratio (2) 103.9

(1) After reinsurance transactions.
(2) Combined ratio after dividends, minus investment gains on funds attributable to insurance transactions and other income. Calculated by the Insurance Information Institute, based on SNL data.

Source: SNL Financial LC.

 
HOMEOWNERS MULTIPLE PERIL INSURANCE UNDERWRITING SNAPSHOT, 2011 (1)
Net premiums earned ($000) $62,575,078
Components of underwriting As a percent of net
premiums earned
     Incurred losses 80.8%
     Loss adjustment expenses 11.2
     Total loss and loss adjustment expenses 92.0%
     Commissions and brokerage expenses incurred 12.7
     Other underwriting expenses incurred 17.7
     Total underwriting expenses incurred 122.4%
     Dividends to policyholders  0.4
     Investment gains on funds attributable to
     insurance transactions and other income
2.9
Combined ratio after dividends  122.3
Overall operating ratio (2) 119.4

(1) After reinsurance transactions.
(2) Combined ratio after dividends, minus investment gains on funds attributable to insurance transactions and other income. Calculated by the Insurance Information Institute, based on SNL Financial data.

Source: SNL Financial LC.

 
HOMEOWNERS INSURANCE INDUSTRY UNDERWRITING EXPENSES, 2012 (1)
Expense Percent of premiums
LOSSES AND RELATED EXPENSES (2)  
Loss and loss adjustment expense (LAE) ratio 72.8%
    Incurred losses 62.6
    Defense and cost containment expenses incurred 1.7
    Adjusting and other expenses incurred 8.5
OPERATING EXPENSES (3)  
Expense ratio 29.7%
    Net commissions and brokerage expenses incurred 12.6
    Taxes, licenses and fees 2.7
    Other acquisition and field supervision expenses incurred 9.1
    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 ($65.7 billion in 2012).
(3) As of percent of net premiums written ($67.8 billion in 2012).
(4) Sum of loss and LAE, expense and dividends ratios.

Source: SNL Financial LC.

 
HOMEOWNERS INSURANCE INDUSTRY UNDERWRITING EXPENSES, 2013 (1)
Expense Percent of premiums
LOSSES AND RELATED EXPENSES (2)  
Loss and loss adjustment expense (LAE) ratio 59.6%
    Incurred losses 50.5
    Defense and cost containment expenses incurred 1.5
    Adjusting and other expenses incurred 7.6
OPERATING EXPENSES (3)  
Expense ratio 29.5%
    Net commissions and brokerage expenses incurred 12.6
    Taxes, licenses and fees 2.7
    Other acquisition and field supervision expenses incurred 9.0
    General expenses incurred 5.2
DIVIDENDS TO POLICYHOLDERS (2) 0.5%
COMBINED RATIO AFTER DIVIDENDS (4) 89.6%

(1) After reinsurance transactions.
(2) As a percent of net premiums earned ($70.3 billion in 2013).
(3) As a percent of net premiums written ($72.8 billion in 2013).
(4) Sum of loss and LAE, expense and dividends ratios.

Source: SNL Financial LC.

 
HOMEOWNERS INSURANCE INDUSTRY UNDERWRITING EXPENSES, 2014 (1)
Expense Percent of premiums
LOSSES AND RELATED EXPENSES (2)  
Loss and loss adjustment expense (LAE) ratio 62.1%
    Incurred losses 53.0
    Defense and cost containment expenses incurred 1.6
    Adjusting and other expenses incurred 7.4
OPERATING EXPENSES (3)  
Expense ratio 29.0%
    Net commissions and brokerage expenses incurred 12.7
    Taxes, licenses and fees 2.6
    Other acquisition and field supervision expenses incurred 8.5
    General expenses incurred 5.2
DIVIDENDS TO POLICYHOLDERS (2) 0.5%
COMBINED RATIO AFTER DIVIDENDS (4) 91.6%

(1) After reinsurance transactions.
(2) As a percent of net premiums earned ($75.3 billion in 2014).
(3) As a percent of net premiums written ($77.9 billion in 2014).
(4) Sum of loss and LAE, expense and dividends ratios.

Source: SNL Financial LC.