2025 Insurance Industry Underwriting Profit Soars to $35.3 Billion

During the first nine months of 2025, the insurance industry experienced a significant underwriting profit of $35.3 billion, a dramatic increase from $4 billion recorded for the same period in 2024. Analyzed by Verisk and the American Property Casualty Insurance Association (APCIA), these findings highlight the industry's financial trajectory as companies begin releasing fourth-quarter and full-year earnings results.

New written premiums reached $740.7 billion by September 30, 2025, showing a 5.1% rise from the previous year. According to Verisk and APCIA, this growth is driven by favorable pricing strategies and consistent demand across personal and commercial insurance lines. Despite this premium increase, the U.S. property and casualty sector's net income declined by 23.7% to $98.7 billion from $129.5 billion, reflecting ongoing regulatory compliance challenges and risk management complexities.

Improved Ratios and Financial Balances

The industry's combined ratio improved to 94 in 2025, down from 97.9 in 2024, signaling better efficiency in managing underwriting and claims. Incurred losses and loss adjustment expenses rose slightly to $487.5 billion from $484.7 billion. Meanwhile, policyholder surplus increased to about $1.2 trillion, up from $1.1 trillion in the same period. These revisions indicate a concerted effort in balancing pricing strategies with claims administration, which underscores the urgent priority for meeting regulatory compliance requirements.