2025 Nine-Month Results Reveal Dramatic Surge in P/C Underwriting Gains

In a remarkable turn of events, insurers have reported an underwriting profit of $35.3 billion for the first nine months of 2025. This figure significantly surpasses the $4 billion profit recorded during the same period in 2024, indicating a robust recovery in the industry.

As public insurance companies prepare to announce their fourth-quarter and full-year earnings, Verisk and the American Property Casualty Insurance Association (APCIA) have provided insights into the financial performance of the industry through the first three quarters of the year.

As of September 30, 2025, new premiums written reached an impressive $740.7 billion, reflecting a 5.1% increase compared to the same timeframe in 2024. This growth is attributed to more adequate pricing strategies and stable demand across most personal and commercial lines of business.

However, despite the positive underwriting results, net income for the U.S. property/casualty industry saw a decline of 23.7%, dropping to $98.7 billion from $129.5 billion in 2024. The industry’s combined ratio also improved, finishing at 94 for the first nine months of 2025, compared to 97.9 in the previous year.

Incurred losses and loss adjustment expenses rose to $487.5 billion, up from $484.7 billion in 2024. This increase highlights the ongoing challenges insurers face in managing claims and expenses effectively.

On a positive note, policyholder surplus climbed to approximately $1.2 trillion through the first nine months of 2025, a notable increase from $1.1 trillion at the same point in 2024. This growth in surplus indicates a strengthening financial position for insurers.

Verisk and APCIA also noted that some adjustments were made to half-year results. Underwriting income saw a significant rise to $11.6 billion, up from $3.8 billion at the halfway point of 2024, showcasing improved operational efficiency and profitability.

Topics
Underwriting
Property Casualty
Numbers

In a remarkable turn of events, insurers have reported an underwriting profit of $35.3 billion for the first nine months of 2025. This figure significantly surpasses the $4 billion profit recorded during the same period in 2024, indicating a robust recovery in the industry.

As public insurance companies prepare to announce their fourth-quarter and full-year earnings, Verisk and the American Property Casualty Insurance Association (APCIA) have provided insights into the financial performance of the industry through the first three quarters of the year.

As of September 30, 2025, new premiums written reached an impressive $740.7 billion, reflecting a 5.1% increase compared to the same timeframe in 2024. This growth is attributed to more adequate pricing strategies and stable demand across most personal and commercial lines of business.

However, despite the positive underwriting results, net income for the U.S. property/casualty industry saw a decline of 23.7%, dropping to $98.7 billion from $129.5 billion in 2024. The industry’s combined ratio also improved, finishing at 94 for the first nine months of 2025, compared to 97.9 in the previous year.

Incurred losses and loss adjustment expenses rose to $487.5 billion, up from $484.7 billion in 2024. This increase highlights the ongoing challenges insurers face in managing claims and expenses effectively.

On a positive note, policyholder surplus climbed to approximately $1.2 trillion through the first nine months of 2025, a notable increase from $1.1 trillion at the same point in 2024. This growth in surplus indicates a strengthening financial position for insurers.

Verisk and APCIA also noted that some adjustments were made to half-year results. Underwriting income saw a significant rise to $11.6 billion, up from $3.8 billion at the halfway point of 2024, showcasing improved operational efficiency and profitability.

Topics
Underwriting
Property Casualty
Numbers