Reduced extreme weather losses and continued premium growth contributed to an estimated net underwriting gain of $35.3 billion for the US insurance industry through the first nine months of 2025, according to Verisk and the American Property Casualty Insurance Association (APCIA).
The results are based on annual statements filed with insurance regulators by private property & casualty insurers domiciled in the US, including reinsurers, excess and surplus insurers, and domestic insurers owned by foreign parents.
The underwriting gain marks a significant increase from the $4 billion gain recorded through the first nine months of 2024.
Net written premiums rose 5.1% to $740.7 billion, up from $704.8 billion during the same period in 2024. Verisk and APCIA said the increase reflects a shift toward adequate pricing and stable demand across most commercial and personal lines.
Net earned premiums grew 6.9% through Q3 2025 to $711.2 billion from $665.5 billion.
Incurred losses and loss adjustment expenses increased just 0.6%, compared with a 2.7% rise in 2024. The combined ratio improved to 94%, down from 97.9%, marking the first Q3 combined ratio below 95 in a decade, signalling stronger underwriting performance.
Policyholders’ surplus increased to $1.20 trillion from $1.12 trillion. Realised capital gains continued to decline, falling to $15.6 billion from $75.5 billion.
Following adjustments to previously reported first-half results, underwriting gains for mid-year 2025 were $11.6 billion, up from a $3.8 billion gain in the prior year.
Insurers wrote $489 billion in premiums during the first half, reflecting a slowdown in growth to 5.4%. Earned premiums grew 7.4% to $469 billion. Incurred losses and loss adjustment expenses increased by 5.4%, compared with a 2.4% increase at mid-year 2024. Policyholders’ surplus rose to $1.13 trillion from $1.07 trillion.
