Reductions in extreme weather losses and continued growth in premiums are expected to result in net underwriting earnings for the U.S. insurance industry reaching $35.3 billion in the first nine months of 2025, according to Verisk and the American Property Casualty Insurance Association (APCIA).
The results are based on annual statements filed with insurance regulators by U.S.-registered private property and casualty insurers, including reinsurers, excess and surplus insurers and domestic insurers owned by foreign parent companies.
Underwriting earnings increased significantly from earnings of $4 billion in the first nine months of 2024.
Net written premiums increased 5.1% to $740.7 billion, up from $704.8 billion in the same period in 2024. Verisk and APCIA said the growth reflects a shift toward appropriate pricing and stable demand across most commercial and personal lines.
By the third quarter of 2025, net premiums earned increased 6.9% from $665.5 billion to $711.2 billion.
Incurred losses and loss adjustment expenses increased only 0.6% compared with 2.7% in 2024. The combined ratio improved to 94% from 97.9%, marking the first time in a decade that the third-quarter ratio fell below 95, indicating stronger underwriting performance.
Policyholder surplus increased from $1.12 trillion to $1.20 trillion. Realized capital gains continued to decline, falling from $75.5 billion to $15.6 billion.
Adjusting for previously reported first-half results, underwriting earnings for the interim period were $11.6 billion, up from $3.8 billion the previous year.
Insurance companies’ premium income in the first half of the year was US$489 billion, with growth slowing to 5.4%. Premiums earned increased 7.4% to $469 billion. Incurred losses and loss adjustment expenses increased 5.4%, compared with a 2.4% increase in mid-2024. Policyholder surplus increased from $1.07 trillion to $1.13 trillion.
