Verisk and the American Property Casualty Insurance Association reported improved U.S. insurance industry performance through the first nine months of 2025, driven by continued premium growth and lower extreme weather losses. The findings, released Feb. 6, show a net underwriting gain of $35.3 billion and a notable improvement in the combined ratio.
According to the report, these results reflect data filed by U.S.-domiciled private property and casualty insurers, including reinsurers and excess and surplus insurers, and account for nearly all industry activity during the period.
Premium Growth Continues Across Lines
Net written premiums increased 5.1% year over year, rising to $740.7 billion through the third quarter of 2025. During the same period in 2024, insurers reported $704.8 billion in net written premiums. The report attributes this growth to a shift toward more adequate pricing and stable demand across most commercial and personal insurance lines.
Net earned premiums also rose, increasing 6.9% to $711.2 billion, compared with $665.5 billion reported in 2024.
Underwriting Results Show Significant Improvement
The industry posted an estimated net underwriting gain of $35.3 billion through the first nine months of 2025. By comparison, insurers reported a $4 billion underwriting gain during the same period in the prior year.
Incurred losses and loss adjustment expenses increased by 0.6%, a slower pace than the 2.7% increase reported in 2024. As a result, the combined ratio improved to 94%, down from 97.9% one year earlier. The report notes that this marks the first time in a decade that the combined ratio fell below 95% through the third quarter.
Policyholders’ surplus increased to $1.20 trillion, up from $1.12 trillion during the same period in 2024.
Investment Results and Capital Gains
Realized capital gains declined significantly during the period, totaling $15.6 billion compared with $75.5 billion in 2024. However, after adjusting for capital gains realized by one insurer in the prior year, overall investment gains remained stable, according to the report.
Mid-Year Results Finalized Following Adjustments
The report also finalized previously adjusted mid-year results for 2025. Underwriting gains for the first six months of the year totaled $11.6 billion, compared with a $3.8 billion gain during the first half of 2024.
Insurers wrote $489 billion in premiums during the first half of 2025, reflecting a slower growth rate of 5.4%. Earned premiums grew 7.4% to $469 billion. During the same period, incurred losses and loss adjustment expenses increased by 5.4%, compared with a 2.4% increase at mid-year 2024. Policyholders’ surplus rose to $1.13 trillion, up from $1.07 trillion reported at mid-year 2024.
About the Data and Reporting Scope
The figures are based on annual statements filed with insurance regulators by private property and casualty insurers domiciled in the United States. The data exclude state workers’ compensation funds, residual market insurers, the National Flood Insurance Program, and foreign insurers. All figures are net of reinsurance unless otherwise noted and may not balance due to rounding.
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