The U.S. property and casualty insurance industry reported a notable improvement in underwriting performance during the first nine months of 2025. According to a new AM Best analysis, underwriting gains increased substantially compared with the same period in the prior year, supported by premium growth, stable loss experience, and higher investment income.
Underwriting Gain Shows Significant Increase
AM Best reported that the U.S. property and casualty industry recorded a $35 billion net underwriting gain for the first nine months of 2025. This result represents a significant increase from the nearly $4 billion underwriting gain reported during the same period in 2024.
These preliminary results appear in Best’s Special Report titled First Look: Nine-Month 2025 US Property/Casualty Financial Results. The data reflects statutory financial statements received as of Dec. 1 and represents approximately 98 percent of total industry net premiums written.
Premium Growth and Lower Catastrophe Impact
According to the report, muted catastrophe losses during the third quarter of 2025 played a key role in the improved results. As a result, net premiums written increased by 7 percent compared with the prior year’s nine-month period. At the same time, losses and loss adjustment expenses incurred showed virtually no change year over year.
The industry’s combined ratio improved by four percentage points to 94.0 for the nine-month period. Catastrophe losses accounted for an estimated 8.0 percentage points of the combined ratio, which declined from 8.7 percentage points during the first nine months of 2024.
Investment Income Supports Operating Results
In addition to underwriting performance, higher investment income supported overall operating results. Net investment income increased by 5.9 percent, which contributed to a 52 percent increase in pretax operating income. Pretax operating income reached $102.4 billion for the nine-month period.
However, net income declined despite the increase in operating income. An 80 percent reduction in net realized capital gains led to a 23 percent decrease in net income compared with the prior-year period. Net income totaled $100.9 billion. The decline in realized gains primarily reflected a combined $60.5 billion reduction at three Berkshire Hathaway companies.
Accessing the Full Report
The full Best’s Special Report, First Look: Nine-Month 2025 US Property/Casualty Financial Results, is available through AM Best.
AM Best operates as a global credit rating agency, news publisher, and data analytics provider focused on the insurance industry. The company is headquartered in the United States and maintains regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore, and Mexico City.
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