Verisk and the APCIA have reported that U.S. property and casualty (P&C) insurers posted some of their strongest underwriting results in years in 2025, although the performance was largely driven by unusually low catastrophe losses rather than any structural improvement in underlying risk.
According to key financial indicators for private U.S. P&C insurers, the industry posted an estimated net underwriting gain of approximately $63 billion.
Verisk and the APCIA said that this represents a significant improvement over the $23 billion underwriting gain in 2024 and the $22 billion underwriting loss recorded in 2023.
U.S. P&C insurers’ written premiums also grew 4.8% to $971 billion, up from $927 billion in 2024, while net earned premiums rose 6.3% to $953 billion, compared with $896 billion the previous year.
Meanwhile, the combined ratio improved to 92.9%, down from 96.6 percent in 2024, reflecting a stronger underwriting performance.
Saurabh Khemka, president of Verisk Underwriting Solutions, commented, “The industry delivered one of its strongest underwriting results in years in 2025, supported by a near-record low combined ratio, but that outcome was driven more by unusually low catastrophe losses rather than a fundamental shift in industry risk.
“A near 90% decline in hurricane-related claims in 2025 materially reduced catastrophe losses, an improvement that reflects limited U.S. landfall rather than a change in underlying exposure.”
Khemka added, “Still, some lines, including personal auto, showed core improvements following strong rate action and tighter underwriting discipline, while workers’ compensation continued to deliver consistently favourable results.
“At the same time, overall premium growth decelerated and commercial liability continued to weigh on overall performance. Taken together, these dynamics make 2025 a reset after several years of volatility, not a new normal.
“Ongoing catastrophe variability, moderating rate momentum and elevated legal system costs mean underwriting discipline remains critical heading into 2026 and beyond. That reality is already playing out this year, as recent tornado and hail events serve as an early reminder of the volatility that continues to define catastrophe risk.”
Robert Gordon, senior vice president, policy, research and international at APCIA, said, “Industry results continued to stabilise in 2025. Incurred losses were largely flat, reflecting the unusual lack of hurricanes making landfall in the United States. Consumers benefited from the slowdown in insurance cost-drivers, as net written premium growth slowed from 8.8% in 2024 to 4.8%.
“Personal and commercial insurance spending declined in 2025 relative to total consumer spending and gross industrial output, respectively. Insurers’ net income declined by 12.6%, partly reflecting reduced realised capital gains.
“Market performance varied significantly by state and line of business. For example, homeowners and auto insurance losses and rates in Florida in 2025 declined significantly following legal system abuse reform, while loss ratios nationwide for contractor’s liability remained elevated.
“Legal system abuse continues to challenge commercial liability lines, with significant adverse reserve additions for recent years continuing in commercial auto liability and other liability.
“While industry premium growth significantly slowed in 2025, particularly in personal lines, losses will continue to face long-term pressures from continuing inflation, demographic shifts, natural disaster severity and legal system abuse.”
