US Property-Casualty Turnaround Highlights Strong Commercial Lines Gains

The US property-casualty industry recorded a net underwriting gain of $22 billion in 2024, reversing a $23 billion loss from the prior year, according to a new report from AM Best. The industry's overall improvement was driven largely by a $31 billion turnaround in personal auto underwriting results. However, commercial lines also delivered solid profitability in 2024, supported by continued rate strengthening and improved risk selection. 

The report, based on statutory data aggregated as of May 15, 2025, noted that the commercial property line posted an $8.1 billion underwriting gain in 2024. This marked a significant recovery from a $1.9 billion loss in 2023. Workers compensation and other liability (claims made) remained profitable, though both lines experienced narrower margins compared with prior years. 

The commercial sector's positive performance helped the property-casualty industry surpass $1 trillion in direct premiums written for the first time. David Blades, associate director of industry research and analytics at AM Best, said, "Persistent efforts to improve rate adequacy, combined with the benefits of the continued leveraging of technology and data analytics to supplement underwriting, claims handling, and ratemaking finally bore fruit in 2024." Mr. Blades also cautioned that the impact of major catastrophe losses, such as the California wildfires, raises questions about the sustainability of homeowners underwriting gains in the coming year. 

Among commercial lines, other liability occurrence, which AM Best said includes much of the umbrella and excess liability business, was a notable weak spot. "Insurers of these coverages have pushed to achieve pricing levels more indicative of recent loss trends, with larger commercial auto losses having a negative impact on umbrella and excess lines' profitability," said Christopher Graham, senior industry research analyst at AM Best. 

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.