U.S. Property and Casualty Insurance Industry Projections for 2025

Verisk and the American Property Casualty Insurance Association (APCIA) have unveiled the preliminary underwriting results for the U.S. property and casualty (P&C) insurance sector for 2025. The industry reports an estimated net underwriting gain of approximately $63 billion. This marks a significant improvement from a $22 billion loss in 2023 and a $23 billion gain in 2024, showcasing a robust recovery.

Saurabh Khemka, president of Verisk Underwriting Solutions, highlights the industry's strong performance attributed to lower catastrophe losses, particularly a notable 90% reduction in hurricane-related claims. This reduction is credited to fewer U.S. landfalls rather than changes in risk exposure. Personal auto lines benefitted from rate adjustments and stricter underwriting practices, while workers' compensation sustained favorable outcomes. Despite these gains, premium growth decelerated, and commercial liability remains a challenge. Khemka underscores the 2025 results as a corrective phase, stressing the need for disciplined underwriting amidst ongoing catastrophe risks and legal expenses.

Robert Gordon, senior vice president at APCIA, observes that 2025 experienced a stabilization in losses, aided by the decreased frequency of hurricanes. Net written premium growth slowed to 4.8%, down from 8.8% in 2024. State and line-specific market performance varied; Florida homeowners and auto insurance saw loss and rate reductions following legal reforms. However, contractor liability loss ratios remain elevated, with legal challenges affecting commercial liability lines, urging significant reserve adjustments in commercial auto and other liability sectors.

The insurance industry continues to grapple with rising material and labor costs, escalating repair and replacement expenses, especially impacting roofing. The shift of frequent, intense storms into new regions adds further risk. Though recent profitability is significant, the focus on evolving risks is crucial as the industry advances into 2026 and beyond.

These figures derive from data in annual statements filed by U.S. property/casualty insurers, encompassing roughly 97.8% of all business activities. The report excludes state funds, the National Flood Insurance Program, and foreign insurers, unless specified. The findings reflect net figures post-reinsurance and may exhibit slight discrepancies due to rounding.