Surge in Underwriting Profits: Insurance Industry Sees $35.3 Billion Rise

In the first nine months of 2025, the insurance industry experienced a staggering rise in underwriting profits, reaching $35.3 billion—up from just $4 billion in the same period the previous year. This substantial growth was meticulously compiled by Verisk and the American Property Casualty Insurance Association (APCIA), setting the stage for insurers to disclose their fourth-quarter and full-year financial results.

By September 30, 2025, new premiums written reached $740.7 billion, showcasing a robust 5.1% growth compared to 2024. According to Verisk and APCIA, this uptick stems from enhanced pricing strategies and a stable demand in both personal and commercial insurance markets. These improvements highlight the industry's effective risk management and strategic underwriting practices.

Despite the revenue growth, the U.S. property/casualty sector saw a 23.7% decline in net income, dropping to $98.7 billion from $129.5 billion year-over-year. The combined ratio improved to 94, down from 97.9 the previous year, signifying better efficiency in underwriting. Although incurred losses and loss adjustment expenses rose slightly to $487.5 billion, the policyholder surplus increased to $1.2 trillion, up from $1.1 trillion, reflecting the sector's resilience amidst regulatory compliance challenges.