Verisk and the American Property Casualty Insurance Association released preliminary 2025 underwriting results for the property/casualty industry, with a $40 billion increase over the prior year.
For private U.S. P/C insurers, the underwriting gain for 2025 was $63 million compared with $23 billion for 2024 and an underwriting loss of $22 billion posted in 2023.
“The industry delivered one of its strongest underwriting results in years in 2025, supported by a near-record low combined ratio, but that outcome was driven more by unusually low catastrophe losses rather than a fundamental shift in industry risk,” said Saurabh Khemka, president of Verisk Underwriting Solutions, in a statement. “A near 90% decline in hurricane-related claims in 2025 materially reduced catastrophe losses, an improvement that reflects limited U.S. landfall rather than a change in underlying exposure.”
The combined ratio finished at 92.9, down from 96.6 in 2024, said Verisk and APCIA. Net written premiums grew 4.8% to $971 billion, compared with 2024.
Khemka said personal auto and some other lines showed improvement due to “string rate action and tighter underwriting discipline” while commercial liability continued to drag on the industry’s performance overall. 2025 was a “reset after several years of volatility” and not a signal of a new normal, Khemka added. The industry still faces headwinds such as rising construction material and labor costs as well as the increasing frequency of severe convective storms.
Net income declined to $148 billion from $169 billion in 2024. APCIA’s Robert Gordon, senior vice president, policy, research and international, said the drop was in part due to reduced realized capital gains.
“Market performance varied significantly by state and line of business. For example, homeowners and auto insurance losses and rates in Florida in 2025 declined significantly following legal system abuse reform, while loss ratios nationwide for contractor’s liability remained elevated,” Gordon added. “Legal system abuse continues to challenge commercial liability lines, with significant adverse reserve additions for recent years continuing in commercial auto liability and other liability. While industry premium growth significantly slowed in 2025, particularly in personal lines, losses will continue to face long-term pressures from continuing inflation, demographic shifts, natural disaster severity and legal system abuse.”
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