INSURANEWS Logo
Top Stories
Life
Health
Medicare
Property & Casualty
Annuity
Industry

U.S. Property/Casualty Industry Boosts Underwriting Gains in Early 2025

Share:

The U.S. property/casualty (P/C) insurance industry experienced a marked improvement in underwriting profits during the first nine months of 2025, with a net underwriting gain of $35 billion compared to approximately $4 billion in the prior-year period. This strong performance is documented in AM Best's recent Best’s Special Report titled “First Look: Nine-Month 2025 US Property/Casualty Financial Results,” based on statutory financial statements covering an estimated 98% of industry premiums. One key factor contributing to the improved results was the reduced impact of catastrophe losses in the third quarter of 2025, which helped sustain a 7% increase in net premiums earned. Losses and loss adjustment expenses remained largely stable year-over-year, resulting in a combined ratio improvement of four percentage points to 94.0. Notably, catastrophe losses contributed 8.0 points to the combined ratio, down from 8.7 points the previous year. Net investment income also played a supportive role, rising by 5.9% and boosting pretax operating income by 52% to $102.4 billion. However, the industry’s overall net income fell by 23% to $100.9 billion, primarily due to an 80% reduction in net realized capital gains influenced by significant declines at Berkshire Hathaway-affiliated companies. These results indicate a stable underwriting environment with moderate premium growth and controlled loss experience, supported by solid investment income despite volatile capital gains. The improvement in core underwriting profitability aligns with industry efforts to maintain disciplined pricing and risk selection amid fluctuating market conditions. AM Best, a global credit rating agency and insurance industry analytics provider, offers these preliminary financial insights to inform stakeholders about the current health and trends of the U.S. P/C insurance sector as of late 2025. The full report is available through AM Best's platform for detailed analysis and broader industry context.