Property-Casualty Insurers See Improved First-Half Underwriting Income

US property-casualty insurers reported $11.2 billion in net underwriting income during the first half of 2025, according to a new report from AM Best.

This year's first-half income is a significant improvement from the $2.9 billion in underwriting income US property-casualty insurers posted during the same period in 2024, AM Best said.

The preliminary results set out in a new Best's Special Report, "First Look: Six-Month 2025 US Property/Casualty Financial Results," are based on data from the insurers' 6-month 2025 interim period statutory statements received as of August 26, AM Best said. The data account for an estimated 96 percent of total industry net premiums written, according to the rating agency.

AM Best said the US property-casualty industry's combined ratio improved to 96.4 percent in the first half of this year from 97.8 percent during the same period in 2024. The rating agency estimated that catastrophe losses accounted for 10.9 percentage points of the 6-month 2025 combined ratio, up from an estimated 8.8 points during the same period last year.

Net earned premium growth of 7.5 percent during this year's first half offset an increase in incurred losses and loss adjustment expenses that were largely attributable to the January 2025 California wildfires and other underwriting expenses, AM Best said.

In addition to the insurers' underwriting income gain, an increase in net investment income helped boost US property-casualty insurers' pre-tax operating income by nearly 25 percent during this year's first 6 months, the rating agency said.

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