Homeowners Insurance Industry Underwriting Expenses, 2022 (1)


Expense Percent of premiums
Losses and related expenses (2)  
Loss and loss adjustment expense (LAE) ratio 77.2%
    Incurred losses 68.1
    Defense and cost containment expenses incurred 1.8
    Adjusting and other expenses incurred 7.3
Operating expenses (3)  
Expense ratio 26.5%
    Net commissions and brokerage expenses incurred 12.1
    Taxes, licenses and fees 2.5
    Other acquisition and field supervision expenses incurred 7.1
    General expenses incurred 4.6
Dividends to policyholders (2) 0.4%
Combined ratio after dividends (4) 104.0%
(1) After reinsurance transactions. (2) As a percent of net premiums earned ($108.8 billion in 2022). (3) As a percent of net premiums written ($114.9 billion in 2022). (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.