U.S. Insurance Market's Underwriting Surge: $35.3 Billion in Gains

U.S. Insurance Market's Underwriting Surge

According to a recent report by Verisk and the American Property Casualty Insurance Association (APCIA), the U.S. insurance market experienced a remarkable underwriting gain of $35.3 billion during the first nine months of 2025. This impressive figure highlights a significant increase from a $4 billion gain reported in the same timeframe of 2024, signaling robust industry growth.

Premium Increases and Market Trends

This underwriting gain largely stems from decreased losses related to extreme weather events and a sustained rise in premium revenues. Data supporting these findings are drawn from annual regulatory compliance requirements and statements submitted by U.S.-domiciled private property & casualty insurers, including reinsurers, excess and surplus lines insurers, and domestic insurers with international affiliations.

Enhanced Underwriting Efficiency

Net written premiums in the industry saw a 5.1% increase, reaching $740.7 billion, compared to $704.8 billion in 2024. This growth reflects a trend towards more adequate pricing and stable demand across commercial and personal insurance lines. Moreover, net earned premiums rose by 6.9% to $711.2 billion, as opposed to $665.5 billion the previous year.

Improved Financial Ratios and Surplus Gains

Incurred losses and related adjustment expenses exhibited a marginal rise of 0.6%, a stark contrast to the 2.7% increase in 2024. The industry’s combined ratio improved significantly to 94% from 97.9%, marking the first sub-95 Q3 combined ratio in a decade, indicative of better underwriting efficiency.

Insights into Surplus and Capital Gains

Policyholders’ surplus climbed from $1.12 trillion to $1.20 trillion, despite a considerable decline in realized capital gains to $15.6 billion from $75.5 billion. Revised figures also show that first-half 2025 underwriting gains reached $11.6 billion, up from $3.8 billion in the previous year.

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