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Private Passenger Auto Insurance Industry Underwriting Expenses, 2023 (1)

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Expense Percent of premiums
Losses and related expenses (2)  
Loss and loss adjustment expense (LAE) ratio 85.0%
    Incurred losses 75.2
    Defense and cost containment expenses incurred 2.3
    Adjusting and other expenses incurred 7.5
Operating expenses (3)  
Expense ratio 19.6%
    Net commissions and brokerage expenses incurred 7.4
    Taxes, licenses and fees 2.2
    Other acquisition and field supervision expenses incurred 5.5
    General expenses incurred 4.5
Dividends to policyholders (2) 0.3%
Combined ratio after dividends (4) 104.9%
(1) After reinsurance transactions. (2) As a percent of net premiums earned ($294.0 billion in 2023). (3) As a percent of net premiums written ($306.6 billion in 2023). (4) Sum of loss and LAE, expense and dividends ratios. Calculated from unrounded data. Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.