Verisk Sees Industry Underwriting Gain Jump to $63B as Combined Ratio Falls
U.S. P&C insurers posted an estimated $63 billion net underwriting gain in 2025, up from $23 billion in 2024, driven by a 90% drop in hurricane claims and a combined ratio of 92.9%. Net written premiums rose 4.8% to $971 billion while net income fell to $148 billion on lower realized capital gains.
1. Industry Underwriting Performance
U.S. property/casualty insurers achieved a net underwriting gain estimated at $63 billion in 2025, compared to $23 billion in 2024. Net written premiums increased 4.8% to $971 billion and net earned premiums rose 6.3% to $953 billion, while net income after taxes declined to $148 billion.
2. Drivers Behind Results
A near 90% reduction in hurricane losses drove the combined ratio improvement to 92.9% from 96.6% in 2024, masking ongoing rate moderation and elevated legal costs. Personal auto and workers’ compensation showed underwriting discipline gains, but commercial liability and decelerating premium growth weighed on results.
3. Outlook and Risks
Realized capital gains fell to $23 billion from $79 billion in 2024, contributing to the net income drop. Escalating material and labor costs, severe convective storms and legal system pressures highlight persistent risk challenges, underscoring the need for continued underwriting discipline in 2026.