Homeowners Insurance Industry Underwriting Expenses, 2021 (1)


Expense Percent of premiums
Losses and related expenses (2)  
Loss and loss adjustment expense (LAE) ratio 76.0%
    Incurred losses 67.0
    Defense and cost containment expenses incurred 1.9
    Adjusting and other expenses incurred 7.0
Operating expenses (3)  
Expense ratio 27.9%
    Net commissions and brokerage expenses incurred 12.1
    Taxes, licenses and fees 2.6
    Other acquisition and field supervision expenses incurred 7.8
    General expenses incurred 5.4
Dividends to policyholders (2) 0.4%
Combined ratio after dividends (4) 104.3%
(1) After reinsurance transactions. (2) As a percent of net premiums earned ($99.5 billion in 2021). (3) As a percent of net premiums written ($104.2 billion in 2021). (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.