U.S. Insurance Sector Growth: Premiums Surge and Underwriting Gains
Verisk and the American Property Casualty Insurance Association have reported significant advancements in the U.S. insurance sector's performance for the first nine months of 2025. The report, released on February 6, 2026, attributes these positive trends to factors such as increased premium growth and a reduced impact from extreme weather events. The analysis reviews data from U.S.-based private property and casualty insurers, including key stakeholders like reinsurers and surplus lines insurers.
Premium Growth and Market Demand
Premium growth was a central driver, with net written premiums rising by 5.1% to $740.7 billion by the end of the third quarter of 2025. This marks an increase from $704.8 billion in 2024, aided by more adequate pricing and stable market demand in the commercial and personal insurance sectors. Net earned premiums also saw a surge of 6.9%, reaching $711.2 billion from $665.5 billion the previous year.
Underwriting Gains and Industry Outlook
Underwriting gains significantly boosted the industry's outlook, registering a net gain of $35.3 billion, compared to $4 billion in 2024. Incurred losses and loss adjustment expenses rose by only 0.6%, a slower pace than the 2.7% increase of the previous year, improving the combined ratio to 94%—its first time below 95% by the third quarter in a decade.
Policyholders' Surplus and Investment Performance
Policyholders' surplus grew from $1.12 trillion in 2024 to $1.20 trillion. Although realized capital gains fell to $15.6 billion from $75.5 billion, investment gains remained steady when adjusted for past irregularities. The report updates mid-year results for 2025, noting underwriting gains of $11.6 billion in the first half, up from $3.8 billion in 2024. Insurers wrote $489 billion in premiums, reflecting a 5.4% growth rate, while earned premiums rose by 7.4% to $469 billion.
Data Sources and Regulatory Insights
These insights stem from regulatory filings by U.S.-domiciled private property and casualty insurers, excluding state workers' compensation funds, residual market insurers, the National Flood Insurance Program, and international insurers. Figures are net of reinsurance and may include minor discrepancies due to rounding.
Insurance professionals seeking detailed insights can explore further at ProgramBusiness.com, a resource for additional industry analyses and opportunities. With improvements in underwriting and regulatory compliance requirements, the industry is poised for continued growth.