US Property and Casualty Insurance Industry Earns $170 Billion in 2024

The US property and casualty insurance industry saw a remarkable net income of $170 billion for 2024, although capital gains from one insurer adjust this figure down to about $100 billion. This represents a significant increase from the previous year's income of $40.9 billion. The underwriting gain for 2024 reached approximately $24.8 billion, reversing the underwriting loss of $21.8 billion from 2023, marking the industry's first full-year gain in four years.

Total premiums written in 2024 reached $926 billion, up from $851 billion, while the earned premiums grew by 9.8% to reach $895 billion. The combined ratio improved to 96.4% in 2024, down from 101.6% in the prior year, indicating better profitability. Despite challenges from natural disasters like Hurricanes Helene and Milton, the industry showed strong growth, with incurred losses increasing to $634.4 billion from $622.4 billion in 2023.

The report highlights an improvement in personal auto insurance, driven by necessary premium adjustments, although the commercial auto segment did not experience the same growth. Additionally, concerns about rising inflation and legal system abuses persist, particularly in California, where homeowners face significant underwriting challenges. Insurers are adapting by enhancing technology for better data-driven decisions in underwriting and risk management.