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

By Chad Hemenway

In a significant shift, insurers reported an impressive underwriting profit of $35.3 billion during the first nine months of 2025. This figure stands in stark contrast to the $4 billion recorded at the same time last year, highlighting a remarkable improvement in the industry’s financial health.

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 2025.

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

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 in 2025 from $129.5 billion in 2024. The industry’s combined ratio improved to 94 for the first nine months of 2025, down from 97.9 in the previous year, indicating better operational efficiency.

Incurred losses and loss adjustment expenses also saw a slight increase, rising to $487.5 billion compared to $484.7 billion in 2024. However, the policyholder surplus grew to approximately $1.2 trillion, up from $1.1 trillion after the same period in 2024, showcasing the industry’s resilience.

Verisk and APCIA noted that some adjustments were made to half-year results, with underwriting income reported at $11.6 billion—an increase from $3.8 billion at the halfway point in 2024. This upward trend in underwriting income reflects the industry’s ability to adapt to changing market conditions and enhance profitability.

Topics
Underwriting
Property Casualty
Numbers

By Chad Hemenway

In a significant shift, insurers reported an impressive underwriting profit of $35.3 billion during the first nine months of 2025. This figure stands in stark contrast to the $4 billion recorded at the same time last year, highlighting a remarkable improvement in the industry’s financial health.

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 2025.

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

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 in 2025 from $129.5 billion in 2024. The industry’s combined ratio improved to 94 for the first nine months of 2025, down from 97.9 in the previous year, indicating better operational efficiency.

Incurred losses and loss adjustment expenses also saw a slight increase, rising to $487.5 billion compared to $484.7 billion in 2024. However, the policyholder surplus grew to approximately $1.2 trillion, up from $1.1 trillion after the same period in 2024, showcasing the industry’s resilience.

Verisk and APCIA noted that some adjustments were made to half-year results, with underwriting income reported at $11.6 billion—an increase from $3.8 billion at the halfway point in 2024. This upward trend in underwriting income reflects the industry’s ability to adapt to changing market conditions and enhance profitability.

Topics
Underwriting
Property Casualty
Numbers