Record Underwriting Gains in Property and Casualty Insurance Amid Rising Premiums

A recent report offers critical insights into the performance of property and casualty insurers in 2025, highlighting substantial underwriting gains despite rising premiums. According to Public Citizen’s analysis, U.S. insurers achieved their most successful underwriting results in over two decades, with profits reaching $68.7 billion after covering claims and operational expenses.

Data from the National Association of Insurance Commissioners revealed that insurers garnered $111.6 billion in investment returns and reported a policyholder surplus of a historic $1.27 trillion at year-end. The industry's combined ratio stood at 92.9%, signifying a $7 underwriting profit for every $100 of premiums received. The absence of major hurricanes contributed to fewer claims, excepting events like the Palisades and Eaton fires.

Amidst rising premiums, insurers have justified increases as necessary to maintain financial stability amid climate-related risks. Public Citizen’s findings, however, argue that industry profits were not solely driven by cost efficiency. Underwriting expenses grew to $252.2 billion, suggesting profit increases were largely due to higher premium rates rather than operational improvements.

The report also highlighted rising executive compensation, with Chubb CEO Evan Greenberg's earnings reaching $33 million in 2025, a $3 million increase from the previous year. Allstate CEO Tom Wilson's compensation exceeded $45 million, while former State Farm CEO Michael Tipsord led personal lines executive pay with $24.4 million in 2022.

Public Citizen criticized this trend, viewing it as a transfer of funds from policyholders to executives and shareholders. Despite the industry's robust financial positioning, substantial policyholder surpluses are often used to rationalize premium increases deemed necessary for financial stability. The report underscored a pattern of elevated executive pay amidst premium hikes, raising questions about industry practices.