New Insurance Industry Report: Reduced Catastrophe Losses Drive Continued Industry Improvements

Core Insights - The U.S. property/casualty insurance industry reported a significant improvement in underwriting performance, achieving a net underwriting gain of $35.3 billion through the first nine months of 2025, compared to a gain of $4 billion in the same period of 2024 [1][4]. Premium Growth - Net written premiums increased by 5.1% to $740.7 billion in Q3 2025, up from $704.8 billion in Q3 2024, indicating a shift towards adequate pricing and stable demand across most lines [3][4]. - Net earned premiums rose by 6.9% to $711.2 billion, compared to $665.5 billion in the previous year [3][4]. Losses and Expenses - Incurred losses and loss adjustment expenses saw a minimal increase of 0.6%, contrasting with a 2.7% rise in 2024 [3][4]. - Other underwriting expenses totaled $186.9 billion, up from $175.3 billion in the previous year [3]. Underwriting Performance - The combined ratio improved to 94.0%, down from 97.9% in the same period last year, marking the first time in a decade that it has fallen below 95 [4]. - Policyholders' surplus increased to $1.20 trillion from $1.12 trillion during the same period in 2024 [4]. Investment Income - Net investment income earned was $63.4 billion, compared to $61.5 billion in 2024 [3]. - Realized capital gains decreased to $15.6 billion from $75.5 billion in the previous year, although overall investment gains remained stable [4]. Industry Overview - The data reflects the performance of private property/casualty insurers in the U.S., accounting for approximately 97.9% of all business written [3]. - Verisk and APCIA collaborated to provide insights into these industry trends, highlighting the importance of data analytics in improving underwriting and claims outcomes [1][8].