| Private Passenger Auto Insurance Industry Underwriting Expenses, 2016 (1) |
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|
| Expense |
Percent of
premiums |
| Losses and related expenses (2) |
|
| Loss and loss adjustment expense (LAE) ratio |
82.4% |
| Incurred losses |
70.3 |
| Defense and cost containment expenses incurred |
2.6 |
| Adjusting and other expenses incurred |
9.5 |
| Operating expenses (3) |
|
| Expense ratio |
23.4% |
| Net commissions and brokerage expenses incurred |
8.7 |
| Taxes, licenses and fees |
2.1 |
| Other acquisition and field supervision expenses incurred |
7.5 |
| General expenses incurred |
5.1 |
| Dividends to policyholders (2) |
0.4% |
| Combined ratio after dividends (4) |
106.3% |
(1) After reinsurance transactions.
(2) As a percent of net premiums earned ($204.8 billion in 2016).
(3) As a percent of net premiums written ($207.4 billion in 2016).
(4) Sum of loss and LAE, expense and dividends ratios.
Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute. |
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