US Property-Casualty Insurers Post $31.7 Billion Underwriting Gain

The US property-casualty insurance industry posted an estimated $31.7 billion net underwriting gain in the first half of 2026, up from $11.6 billion during the same period last year, according to Verisk and the American Property Casualty Insurance Association (APCIA).

The industry's combined ratio improved to 92.7 from 96.5 a year earlier, while incurred losses and loss adjustment expenses declined 4.8 percent. First-half 2025 results had been significantly affected by catastrophe losses from the Los Angeles wildfires.

Despite stronger underwriting results, premium growth slowed amid competitive market conditions. Net written premiums increased 2.1 percent, compared with 5.2 percent during the first half of 2025 and 10.8 percent during the same period in 2024. Net earned premiums increased 3.3 percent, compared with 7.3 percent a year earlier.

Policyholders' surplus increased to $1.30 trillion from $1.13 trillion at midyear 2025. Net investment gains rose to $59.6 billion from $49 billion, while net income after taxes increased 53 percent to $77.8 billion from $50.9 billion.

"First-half results should not be mistaken as evidence that underlying risk has diminished," Saurabh Khemka, president of Verisk Underwriting Solutions, said. "Broader industry performance highlights the growing value of precision as property market conditions continue to soften."

Natural catastrophe exposure remains significant. Verisk's 2026 Global Modeled Catastrophe Losses Report estimates average annual insured catastrophe losses globally at approximately $171 billion, with the US accounting for about $117 billion, or roughly two-thirds of the total. The estimate reflects modeled possibilities under current exposure and climate conditions.

"In good news for policyholders, premium increases continued to moderate in the first half of 2026, falling below general inflation and building materials and labor costs," Robert Gordon, senior vice president of policy, research, and international at APCIA, said.

Mr. Gordon said insurer loss experience and profitability varied widely by state. In Florida, Georgia, and Louisiana, which have enacted legal system abuse reforms, many policyholders have begun seeing reductions in auto and homeowners insurance rates that APCIA expects to provide hundreds of millions of dollars in premium relief.

Casualty lines continued to face pressure despite the industry's overall improvement. Bodily injury and commercial liability losses worsened, while excess liability, umbrella liability, commercial auto, and other casualty lines faced escalating claim severity, nuclear verdicts, and rising medical costs.

"While insured natural-catastrophe losses provided a temporary reprieve in the first half of 2026, bodily injury and commercial liability losses continued to worsen," Mr. Gordon said.