U.S. Property and Casualty Insurance Sector Sees Q1 2026 Gains

The U.S. property and casualty insurance sector achieved a remarkable turnaround with an estimated net underwriting gain of $15.8 billion in Q1 2026, a significant improvement from the $864 million underwriting loss in the same period the previous year. This change reflects reduced catastrophe activity, as major disasters in 2025, such as California's Palisades and Eaton wildfires, heavily impacted financial results, according to a Verisk report.

In the first quarter of 2026, growth in net written premiums slowed to 2.9%, down from 6.8% a year earlier, while the combined ratio improved to 92.4% from 99.2%. Net income after taxes soared by 110.7%, reaching $40.9 billion compared to the $19.4 billion recorded in Q1 2025. The sector also benefited from increased investment income, rising to $22.4 million from $19.8 million the previous year, alongside a policyholders’ surplus that grew to $1.24 trillion.

Robert Gordon, senior VP for policy and research at the American Property Casualty Insurance Association, attributed the enhanced profitability to tempered inflation rates and reduced natural disaster occurrences. These financial results, submitted to regulators by U.S.-based private property/casualty insurers, underscore the industry's resilience. For more on risk management and insurance sector updates, Business Insurance remains a leading source of professional insights.