Current Table

Property/Casualty Insurance Industry Losses And Underwriting Expenses, 2018 (1)

 

Expense Percent of premiums
Losses and related expenses (2)  
Loss and loss adjustment expense (LAE) ratio 71.3%
    Incurred losses 60.6
    Defense and cost containment expenses incurred 4.1
    Adjusting and other expenses incurred 6.6
Underwriting expenses (3)  
Expense ratio 27.1%
    Net commissions and brokerage expenses incurred 11.5
    Taxes, licenses and fees 2.4
    Other acquisition and field supervision expenses incurred 6.7
    General expenses incurred 6.5
Dividends to policyholders (2) 0.6%
Combined ratio after dividends (4) 99.0%

(1) After reinsurance transactions.
(2) As a percent of net premiums earned ($598.6 billion in 2018).
(3) As a percent of net premiums written ($617.0 billion in 2018).
(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.

 
PROPERTY/CASUALTY INSURANCE INDUSTRY UNDERWRITING EXPENSES, 2013 (1)
Expense Percent of  premiums
LOSSES AND RELATED EXPENSES (2)  
Loss and loss adjustment expense (LAE) ratio 67.4%
    Incurred losses 55.5
    Defense and cost containment expenses incurred 4.6
    Adjusting and other expenses incurred 7.3
UNDERWRITING EXPENSES (3)  
Expense ratio 28.3%
    Net commissions and brokerage expenses incurred 10.5
    Taxes, licenses and fees 2.6
    Other acquisition and field supervision expenses incurred 8.0
    General expenses incurred 7.2
DIVIDENDS TO POLICYHOLDERS (2) 0.6%
COMBINED RATIO AFTER DIVIDENDS (4) 96.3%

(1) After reinsurance transactions.
(2) As a percent of net premiums earned ($471.6 billion in 2013).
(3) As of percent of net premiums written ($481.2 billion in 2013).
(4) Sum of loss and LAE, expense and dividends ratios.

Source: SNL Financial LC.

 
PROPERTY/CASUALTY INSURANCE INDUSTRY UNDERWRITING EXPENSES, 2014 (1)
Expense Percent of premiums
LOSSES AND RELATED EXPENSES (2)  
Loss and loss adjustment expense (LAE) ratio 69.0%
     Incurred losses 57.2
     Defense and cost containment expenses incurred 4.4
     Adjusting and other expenses incurred 7.4
UNDERWRITING EXPENSES (3)  
Expense ratio 27.7%
     Net commissions and brokerage expenses incurred 10.7
     Taxes, licenses and fees 2.5
     Other acquisition and field supervision expenses incurred 7.6
     General expenses incurred 6.9
DIVIDENDS TO POLICYHOLDERS (2) 0.6%
COMBINED RATIO AFTER DIVIDENDS (4) 97.2%

(1) After reinsurance transactions.
(2) As a percent of net premiums earned ($493.3 billion in 2014).
(3) As a percent of net premium written ($502.6 billion in 2014).
(4) Sum of loss and LAE, expense and dividends ratios.

Source: SNL Financial LC.

 
Property/Casualty Insurance Industry Underwriting Expenses, 2015 (1)
Expense Percent of premiums
Losses And Related Expenses (2)  
Loss and loss adjustment expense (LAE) ratio 69.3%
    Incurred losses 57.4
    Defense and cost containment expenses incurred 4.5
    Adjusting and other expenses incurred 7.4
Underwriting Expenses (3)  
Expense ratio 27.9%
    Net commissions and brokerage expenses incurred 10.9
    Taxes, licenses and fees 2.5
    Other acquisition and field supervision expenses incurred 7.6
    General expenses incurred 6.9
Dividends To Policyholders (2) 0.6%
Combined Ratio After Dividends (4) 97.7%

(1) After reinsurance transactions.
(2) As a percent of net premiums earned ($511.5 billion in 2015).
(3) As a percent of net premiums written ($519.8 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.

 
Property/Casualty Insurance Industry Underwriting Expenses, 2016 (1)
Expense Percent of premiums
Losses and related expenses (2)  
Loss and loss adjustment expense (LAE) ratio 72.3%
    Incurred losses 60.7
    Defense and cost containment expenses incurred 4.2
    Adjusting and other expenses incurred 7.4
Underwriting expenses (3)  
Expense ratio 27.8%
    Net commissions and brokerage expenses incurred 10.7
    Taxes, licenses and fees 2.5
    Other acquisition and field supervision expenses incurred 7.6
    General expenses incurred 7.0
Dividends to policyholders (2) 0.6%
Combined ratio after dividends (4) 100.6%

(1) After reinsurance transactions.
(2) As a percent of net premiums earned ($528.6 billion in 2016).
(3) As a percent of net premiums written ($533.5 billion in 2016).
(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.

 
Property/Casualty Insurance Industry Underwriting Expenses, 2017 (1)

 

Expense Percent of premiums
Losses and related expenses (2)  
Loss and loss adjustment expense (LAE) ratio 75.9%
     Incurred losses 64.2
     Defense and cost containment expenses incurred 4.3
     Adjusting and other expenses incurred 7.4
Underwriting expenses (3)  
Expense ratio 27.0%
     Net commissions and brokerage expenses incurred 10.5
     Taxes, licenses and fees 2.4
     Other acquisition and field supervision expenses incurred 7.1
     General expenses incurred 7.0
Dividends to policyholders (2) 0.6%
Combined ratio after dividends (4) 103.6%

(1) After reinsurance transactions.
(2) As a percent of net premiums earned ($546.0 billion in 2017).
(3) As a percent of net premiums written ($558.2 billion in 2017).
(4) Sum of loss and LAE, expense and dividends ratios.

Note: Totals may not add up due to rounding.

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