Strong Underwriting Gains in Q3 2025: Insights from Verisk and APCIA
Verisk, in collaboration with the American Property Casualty Insurance Association (APCIA), has released industry performance data for the first nine months of 2025, reporting a significant underwriting gain of $35.3 billion. This improvement is attributed to steady premium growth and a decrease in losses from extreme weather events, reflecting strategic risk management and regulatory compliance.
Underwriting Performance (Q3 2025)
The net written premiums for the period reached $740.7 billion, marking a 5.1 percent increase from $704.8 billion in the same timeframe in 2024. This growth reflects an alignment with adequate pricing and a stable demand across both personal and commercial insurance lines. Meanwhile, net earned premiums experienced a 6.9 percent rise to $711.2 billion, up from $665.5 billion in the previous year.
Compared to the $4 billion gain observed in 2024, the net underwriting gain leaped to $35.3 billion, driven by efficient underwriting practices. The incurred losses and loss adjustment expenses increased marginally by 0.6 percent, a substantial moderation from the 2.7 percent seen last year. Consequently, the combined ratio improved to 94 percent, a noteworthy advancement from 97.9 percent, highlighting enhanced underwriting conditions not seen below 95 in a decade.
Policyholders' surplus increased from $1.12 trillion to $1.20 trillion year-on-year. However, realized capital gains dipped to $15.6 billion, significantly lower than the previous year's $75.5 billion. Adjusting for extraordinary capital gains realized by a single insurer last year, overall investment returns maintained stability, illustrating effective capital management and regulatory compliance requirements.
Mid-Year Adjustments for 2025
The first half of 2025 concluded with $11.6 billion in underwriting gains, a considerable rise from $3.8 billion during the same period in 2024. Premiums written totaled $489 billion, with a growth rate slowing slightly to 5.4 percent. Earned premiums rose by 7.4 percent, amounting to $469 billion. Incurred losses grew by 5.4 percent, compared to a 2.4 percent increase in the previous mid-year, reflecting adjustments in claims management strategies.
Verisk's offerings in Underwriting & Rating Solutions are designed to aid insurers and reinsurers in optimizing their processes, facilitating efficient cost management while streamlining the underwriting process across various insurance lines. These solutions play an essential role for insurers dealing with both personal and commercial coverages, supporting comprehensive insurance carrier needs.
Company Overviews
Verisk stands as a key provider of data analytics and technology services within the global insurance sector, enhancing underwriting efficiency and claims management while supporting risk assessment initiatives. APCIA serves as the primary trade association for property and casualty insurers, advocating for the industry's competitive vitality and sustainability.
For further details, interested parties can contact Morgan Hurley at Verisk. This report is based on annual financial statements filed with regulatory bodies by U.S. property and casualty insurers, covering approximately 97.9 percent of total business written by these entities. The figures presented are net of reinsurance and may not balance precisely due to rounding.