| Homeowners Insurance Industry Underwriting Expenses, 2022 (1) |
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|
| 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. |
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