US P&C Underwriting Income Surges to $60.9 Billion in 2025
March 24, 2026
The US property-casualty (P&C) insurance industry posted a $60.9 billion net underwriting gain in 2025, nearly tripling the $22.1 billion recorded a year earlier, according to AM Best's latest financial review.
The results, based on statutory filings representing about 96 percent of industry net premiums written, reflect improved underwriting performance driven by premium growth and lower catastrophe losses. Net premiums written rose 4.7 percent to $940.7 billion, while net premiums earned increased 6.1 percent to $923.3 billion.
The industry's combined ratio improved 3.7 points to 92.9. Catastrophe losses accounted for 7.6 points on the combined ratio, down from 8.8 points in 2024, as muted insured catastrophe activity—particularly in the second half of the year—supported underwriting results.
Losses and loss adjustment expenses declined slightly to $615.7 billion, while underwriting expenses rose 7.1 percent to $241.2 billion. Favorable reserve development of $18.1 billion also contributed to results; excluding this benefit, the accident-year combined ratio was 94.9.
Net investment income increased 9.1 percent to $91.4 billion, helping drive a 43.2 percent rise in pre-tax operating income to $153.1 billion. However, a 71.6 percent drop in net realized capital gains—driven largely by a $60.0 billion decline at three Berkshire Hathaway companies—led to a 9.5 percent decrease in net income to $150.9 billion.
Policyholder surplus grew 11.4 percent to $1.19 trillion at year-end 2025, supported by net income, unrealized capital gains, and contributed capital, partially offset by dividends and other losses. The increase marked a $122.9 billion gain from the prior year-end level.
AM Best said the report provides an early view of the industry's financial position, highlighting the impact of disciplined underwriting, premium growth, and reduced catastrophe losses on overall performance.
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March 24, 2026
