PROPERTY/CASUALTY INSURANCE INDUSTRY UNDERWRITING EXPENSES, 2013 (1)
| Expense |
Percent ofÌý premiums |
| LOSSES AND RELATED EXPENSES (2) |
Ìý |
| Loss and loss adjustment expense (LAE) ratio |
67.4% |
| ÌýÌýÌý Incurred losses |
55.5 |
| ÌýÌýÌý Defense and cost containment expenses incurred |
4.6 |
| ÌýÌýÌý Adjusting and other expenses incurred |
7.3 |
| UNDERWRITING EXPENSES (3) |
Ìý |
| Expense ratio |
28.3% |
| ÌýÌýÌý Net commissions and brokerage expenses incurred |
10.5 |
| ÌýÌýÌý Taxes, licenses and fees |
2.6 |
| ÌýÌýÌý Other acquisition and field supervision expenses incurred |
8.0 |
| ÌýÌýÌý 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) |
Ìý |
| Loss and loss adjustment expense (LAE) ratio |
69.0% |
| ÌýÌýÌýÌý Incurred losses |
57.2 |
| ÌýÌýÌýÌý Defense and cost containment expenses incurred |
4.4 |
| ÌýÌýÌýÌý Adjusting and other expenses incurred |
7.4 |
| UNDERWRITING EXPENSES (3) |
Ìý |
| Expense ratio |
27.7% |
| ÌýÌýÌýÌý Net commissions and brokerage expenses incurred |
10.7 |
| ÌýÌýÌýÌý Taxes, licenses and fees |
2.5 |
| ÌýÌýÌýÌý Other acquisition and field supervision expenses incurred |
7.6 |
| ÌýÌýÌýÌý 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) |
Ìý |
| Loss and loss adjustment expense (LAE) ratio |
69.3% |
| ÌýÌýÌý Incurred losses |
57.4 |
| ÌýÌýÌý Defense and cost containment expenses incurred |
4.5 |
| ÌýÌýÌý Adjusting and other expenses incurred |
7.4 |
| Underwriting Expenses (3) |
Ìý |
| Expense ratio |
27.9% |
| ÌýÌýÌý Net commissions and brokerage expenses incurred |
10.9 |
| ÌýÌýÌý Taxes, licenses and fees |
2.5 |
| ÌýÌýÌý Other acquisition and field supervision expenses incurred |
7.6 |
| ÌýÌýÌý 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) |
Ìý |
| Loss and loss adjustment expense (LAE) ratio |
72.3% |
| ÌýÌýÌý Incurred losses |
60.7 |
| ÌýÌýÌý Defense and cost containment expenses incurred |
4.2 |
| ÌýÌýÌý Adjusting and other expenses incurred |
7.4 |
| Underwriting expenses (3) |
Ìý |
| Expense ratio |
27.8% |
| ÌýÌýÌý Net commissions and brokerage expenses incurred |
10.7 |
| ÌýÌýÌý Taxes, licenses and fees |
2.5 |
| ÌýÌýÌý Other acquisition and field supervision expenses incurred |
7.6 |
| ÌýÌýÌý 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) |
Ìý |
| Loss and loss adjustment expense (LAE) ratio |
75.9% |
| ÌýÌýÌýÌý Incurred losses |
64.2 |
| ÌýÌýÌýÌý Defense and cost containment expenses incurred |
4.3 |
| ÌýÌýÌýÌý Adjusting and other expenses incurred |
7.4 |
| Underwriting expenses (3) |
Ìý |
| Expense ratio |
27.0% |
| ÌýÌýÌýÌý Net commissions and brokerage expenses incurred |
10.5 |
| ÌýÌýÌýÌý Taxes, licenses and fees |
2.4 |
| ÌýÌýÌýÌý Other acquisition and field supervision expenses incurred |
7.1 |
| ÌýÌýÌýÌý 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.
Property/Casualty Insurance Industry Losses And Underwriting Expenses, 2018 (1)
| Expense |
Percent of premiums |
| Losses and related expenses (2) |
Ìý |
| Loss and loss adjustment expense (LAE) ratio |
71.3% |
| ÌýÌýÌý Incurred losses |
60.6 |
| ÌýÌýÌý Defense and cost containment expenses incurred |
4.1 |
| ÌýÌýÌý Adjusting and other expenses incurred |
6.6 |
| Underwriting expenses (3) |
Ìý |
| Expense ratio |
27.1% |
| ÌýÌýÌý Net commissions and brokerage expenses incurred |
11.5 |
| ÌýÌýÌý Taxes, licenses and fees |
2.4 |
| ÌýÌýÌý Other acquisition and field supervision expenses incurred |
6.7 |
| ÌýÌýÌý 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, 2019 (1)
| Expense |
Percent of premiums |
| Losses and related expenses (2) |
Ìý |
| Loss and loss adjustment expense (LAE) ratio |
70.2% |
| ÌýÌýÌý Incurred losses |
59.2 |
| ÌýÌýÌý Defense and cost containment expenses incurred |
4.4 |
| ÌýÌýÌý Adjusting and other expenses incurred |
6.6 |
| Underwriting expenses (3) |
Ìý |
| Expense ratio |
27.8% |
| ÌýÌýÌý Net commissions and brokerage expenses incurred |
11.3 |
| ÌýÌýÌý Taxes, licenses and fees |
2.4 |
| ÌýÌýÌý Other acquisition and field supervision expenses incurred |
7.0 |
| ÌýÌýÌý General expenses incurred |
7.1 |
| Dividends to policyholders (2) |
0.9% |
| Combined ratio after dividends (4) |
98.9% |
|
(1) After reinsurance transactions.
(2) As a percent of net premiums earned ($574.3 billion in 2019).
(3) As a percent of net premiums written ($585.0 billion in 2019).
(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, 2020 (1)
| Expense |
Percent of premiums |
| Losses and related expenses (2) |
Ìý |
| Loss and loss adjustment expense (LAE) ratio |
70.2% |
| ÌýÌýÌý Incurred losses |
59.4 |
| ÌýÌýÌý Defense and cost containment expenses incurred |
4.2 |
| ÌýÌýÌý Adjusting and other expenses incurred |
6.6 |
| Underwriting expenses (3) |
Ìý |
| Expense ratio |
27.4% |
| ÌýÌýÌý Net commissions and brokerage expenses incurred |
11.5 |
| ÌýÌýÌý Taxes, licenses and fees |
2.3 |
| ÌýÌýÌý Other acquisition and field supervision expenses incurred |
6.6 |
| ÌýÌýÌý General expenses incurred |
7.0 |
| Dividends to policyholders (2) |
1.2% |
| Combined ratio after dividends (4) |
98.7% |
|
(1) After reinsurance transactions.
(2) As a percent of net premiums earned ($642.5 billion in 2020).
(3) As a percent of net premiums written ($655.5 billion in 2020).
(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, 2021 (1)
| Expense |
Percent of premiums |
| Losses and related expenses (2) |
Ìý |
| Loss and loss adjustment expense (LAE) ratio |
87.1% |
| ÌýÌýÌý Incurred losses |
75.0 |
| ÌýÌýÌý Defense and cost containment expenses incurred |
4.8 |
| ÌýÌýÌý Adjusting and other expenses incurred |
7.4 |
| Underwriting expenses (3) |
Ìý |
| Expense ratio |
32.1% |
| ÌýÌýÌý Net commissions and brokerage expenses incurred |
13.8 |
| ÌýÌýÌý Taxes, licenses and fees |
2.8 |
| ÌýÌýÌý Other acquisition and field supervision expenses incurred |
7.8 |
| ÌýÌýÌý General expenses incurred |
7.8 |
| Dividends to policyholders (2) |
0.7% |
| Combined ratio after dividends (4) |
119.9% |
|
(1) After reinsurance transactions.
(2) As a percent of net premiums earned ($687.5 billion in 2021).
(3) As a percent of net premiums written ($713.9 billion in 2021)
(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, 2022 (1)
| Expense |
Percent of premiums |
| Losses and related expenses (2) |
Ìý |
| Loss and loss adjustment expense (LAE) ratio |
92.4% |
| ÌýÌýÌý Incurred losses |
80.5 |
| ÌýÌýÌý Defense and cost containment expenses incurred |
4.6 |
| ÌýÌýÌý Adjusting and other expenses incurred |
7.3 |
| Underwriting expenses (3) |
Ìý |
| Expense ratio |
31.6% |
| ÌýÌýÌý Net commissions and brokerage expenses incurred |
14.1 |
| ÌýÌýÌý Taxes, licenses and fees |
2.8 |
| ÌýÌýÌý Other acquisition and field supervision expenses incurred |
7.4 |
| ÌýÌýÌý General expenses incurred |
7.3 |
| Dividends to policyholders (2) |
0.5% |
| Combined ratio after dividends (4) |
124.4% |
|
(1) After reinsurance transactions.
(2) As a percent of net premiums earned ($697 billion in 2022).
(3) As a percent of net premiums written ($724.6 billion in 2022)
(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.