According to a report by credit rating agency AM Best, the U.S. property and casualty (P&C) industry’s net underwriting income in the first nine months of 2025 was US$35 billion, a significant increase from US$3.7 billion in the same period in 2024.
A special report from AM Best outlines the results, First Look: 9-Month 2025 U.S. Property/Casualty Financial Results, The report draws on nine months of interim statutory statements filed until December 1 and is estimated to cover 98% of the industry’s total net premiums written.
AM Best reported relatively low catastrophe losses in the third quarter of 2025, which led to a 7% increase in net premiums, while incurred losses and loss adjustment expenses remained close to prior year levels.
The industry’s combined ratio improved four percentage points to 94.0, with catastrophe losses estimated at 8.0 percentage points, down from 8.7 percentage points in the first nine months of 2024.
Net investment income increased 5.9%, further strengthening underwriting performance, driving pre-tax operating income to increase 52% to $102.4 billion. AM Best reported that net realized capital gains fell by 80%, mainly due to a combined decrease of $60.5 billion among the three Berkshire Hathaway companies, resulting in a 23% decline in net profit to $100.9 billion.
Policyholder surplus increased 6.8% from the end of 2024 to $1.2 trillion. The increase was driven by net income, unrealized gains and paid-in capital of $131.3 billion, with $20.5 billion of lower other earnings and shareholder dividends reducing net income.
AM Best emphasizes that its first look report Provides an early view of the financial health of the U.S. property and casualty insurance industry. The data included in the report represent an estimated 98% of the industry’s total net written premiums and 98% of policyholder surplus.