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Property/Casualty 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 76.3%
    Incurred losses 66.5
    Defense and cost containment expenses incurred 3.9
    Adjusting and other expenses incurred 6.0
Operating expenses (3)  
Expense ratio 24.9%
    Net commissions and brokerage expenses incurred 10.8
    Taxes, licenses and fees 2.3
    Other acquisition and field supervision expenses incurred 5.5
    General expenses incurred 6.4
Dividends to policyholders (2) 0.4%
Combined ratio after dividends (4) 101.7%
(1) After reinsurance transactions. (2) As a percent of net premiums earned ($821.3 billion in 2023). (3) As a percent of net premiums written ($857.3 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.