U.S. property and casualty (P&C) insurers posted their strongest underwriting results in years in 2025, although the results were driven primarily by unusually low catastrophe losses rather than structural improvements in underlying risks, Verisk and APCIA reported.
According to key financial indicators for U.S. private property insurance companies, the industry expects net underwriting earnings to be approximately $63 billion.
Verisk and APCIA said this is a significant improvement from the $23 billion in underwriting gains recorded in 2024 and the $22 billion in underwriting losses recorded in 2023.
U.S. property and casualty insurers’ written premiums also increased 4.8%, from $927 billion in 2024 to $971 billion, while net premiums increased 6.3%, from $896 billion the previous year to $953 billion.
At the same time, the combined ratio improved to 92.9% from 96.6% in 2024, reflecting stronger underwriting performance.
Saurabh Khemka, President of Verisk Underwriting Solutions, commented: “The industry delivered one of its strongest underwriting results in years in 2025, supported by near-record low combined ratios, but this result was driven more by unusually low catastrophe losses than a fundamental shift in industry risk.
“Hurricane-related claims fell nearly 90% in 2025, sharply reducing catastrophe losses, an improvement that reflects limited U.S. landfalls rather than changes in underlying risk.”
Khemka added, “Nonetheless, several product lines, including personal automobiles, showed core improvement following strong rate action and tighter underwriting discipline, while workers’ compensation continued to deliver consistently favorable results.
“At the same time, overall premium growth has slowed and commercial liabilities continue to weigh on overall performance. Taken together, these dynamics make 2025 a reset after several years of volatility, rather than a new normal.
“Continued catastrophe variability, slowing interest rate momentum and rising costs in the legal system mean underwriting discipline will remain critical in 2026 and beyond. This reality has played out this year as recent tornado and hail events served as an early reminder of the continued volatility of catastrophe risk.”
Robert Gordon, senior vice president of policy, research and international at APCIA, said: “Industry performance continues to be solid in 2025. Losses incurred are essentially flat, reflecting the few hurricanes making landfall in the United States. Consumers benefited from moderating insurance cost drivers, with net written premium growth slowing to 4.8% from 8.8% in 2024.”
“Relative to total consumer spending and total industrial production, personal and commercial insurance spending fell respectively in 2025. Insurers’ net profits fell 12.6%, partly reflecting lower realized capital gains.
“Market performance varies by state and industry. For example, homeowners and auto insurance losses and rates declined significantly in Florida in 2025 following legal system abuse reforms, while loss rates for contractor liability remained high nationwide.
“Abuse of the legal system continues to challenge commercial liability lines, and adverse reserves for commercial auto liability and other liabilities have continued to increase significantly in recent years.
“While industry premium growth will slow significantly in 2025, particularly in personal lines, losses will continue to face long-term pressures from continued inflation, demographic changes, the severity of natural disasters and abuse of the legal system.”
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