U.S. P&C Insurers Post $11.5 Billion Underwriting Profit in the First Half of 2025
Despite a slowdown in premium growth and a loss-heavy first quarter, the U.S. property and casualty insurance industry posted an underwriting profit of $11.5 billion in the first half of 2025, according to data from Verisk and the American Property Casualty Insurance Association (APCIA). The $11.5 billion profit surpassed the $3.8 billion underwriting profit in the first half of 2024.
Investment gains and rate adequacy propelled the P&C market to the underwriting gains in H1 2025, the report indicated. The industry reported a 96.4% combined ratio compared to 97.6% in the prior-year period.
P&C insurers wrote $472 billion in premiums for the first half of the year, up from $464 billion in the first half of 2024.
“Net written premiums growth slowed to 1.9%. The lack of any significant natural catastrophes in the second quarter helped offset the record-breaking catastrophe losses related to the California wildfires and severe convective storms impacting Texas and Georgia earlier in the year,” said Robert Gordon, senior vice president, policy, research and international at APCIA. “However, the U.S. is now entering the height of hurricane and wildfire season, so time will tell if the industry is able to maintain underwriting gains through year-end.”
The industry headed into the second half of the year in a strong position, with surplus levels at the historic high of $1.08 trillion. However, Verisk and APCIA warned of the headwinds of inflation, climate risks and challenges for specific lines.
“While some lines are showing signs of improvement, the broader industry continues to walk a fine line,” said Saurabh Khemka, co-president of underwriting solutions at Verisk. “Combined ratio has edged down slightly from this time last year, reflecting underwriting discipline, but escalating catastrophe losses—most notably January’s unprecedented California wildfires—underscore the volatility ahead. Predictive analytics, granular data and adaptive pricing strategies can help insurers respond to a rapidly evolving risk landscape.”
Article Published By: Zywave, Inc.
