Texas Homeowners Insurance Loss Data 1992-2008 from the Texas Department of Insurance

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March 23, 2009

Texas Homeowners Insurance Loss Data 1992-2008

Year	Direct Premiums Earned ($)	Direct Losses Incurred ($)	Incurred Loss¹ Ratio	Combined Loss & Expense Ratio
1992	1,786,929,066	1,926,584,308	107.8	151.1
1993	1,916,266,180	1,266,821,284	66.1	105.4
1994	2,087,305,728	1,530,838,923	73.3	115.2
1995	2,188,807,260	2,025,806,202	92.6	133.3
1996	2,329,765,210	1,382,897,123	59.4	99.0
1997	2,468,086,626	1,118,004,785	45.3	85.7
1998	2,633,703,160	1,194,948,538	45.4	87.7
1999	2,804,336,380	1,421,627,819	50.7	93.3
2000	2,907,168,495	2,431,007,220	83.6	126.7
2001	3,121,726,707	3,648,017,214	116.9	165.6
2002	3,802,852,983	4,142,463,985	108.9	158.5
2003	4,324,626,880	2,526,263,799	58.4	96.4
2004	4,361,635,314	1,213,088,301	27.8	60.6
2005	4,610,859,573	2,609,419,843	56.6	91.7
2006	4,604,385,162	1,566,429,126	34.0	68.1
2007	5,000,782,866	1,820,164,762	36.4	71.0
2008*	5,169,021,636	6,565,744,849	127.0	165.0
03 - 08 TOTAL	28,071,311,431	16,301,110,680	58.1	93.5
92 - 08 TOTAL	56,118,259,226	38,390,128,081	68.4	107.9

¹Loss ratio excludes loss adjustment expense, commissions, taxes and other overhead expenses.

* 2008 loss data is preliminary but represents all major insurers. Expense data includes direct Texas expenses; countrywide expenses attributable to Texas have not yet been reported for 2008 and therefore historic values were used to determine current estimates.

What is a loss ratio? - Loss ratio is basically the percentage of losses, (claims insurers have paid) versus what they have collected in premiums.
Combined loss ratios are a better snapshot of what is happening. The combined loss and expense ratio takes into account a company’s expenses for agent commissions, overhead, and administrative costs.

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Last updated: 03/23/2009