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U.S. property-casualty insurers post decade best combined ratio in 2025
Premium growth and stronger personal lines drove the combined ratio to 93 in 2025, down 3.6 points from 2024, while underwriting income rose to $61.2 billion.
U.S. property and casualty insurers generated their best underwriting performance in a decade in 2025, with AM Best data showing the industry’s combined ratio finishing at 93. The 2025 result marked an improvement of 3.6 points from 2024, following an industrywide build-up in underwriting profits after years of losses, Insurance Journal reported.
Premiums held up as total direct premiums written grew 5% to about $1.11 trillion in 2025. Insurance Journal said underwriting income totaled about $61.2 billion in 2025, after increasing to $23 billion in 2024 from earlier downturns, supported largely by personal lines.
AM Best attributed the improvement in part to personal auto and homeowners momentum entering 2024, along with technology and data analytics that have helped insurers with underwriting, claims handling, and ratemaking. Insurance Journal added that homeowners multiperil and private passenger auto recorded net underwriting income of about $16.8 billion and $28.9 billion in 2025, respectively, after homeowners insurers had booked an underwriting loss of about $1.5 billion in 2024.
Regulatory conditions also played a role, with Insurance Journal noting that regulators allowed carriers to accelerate the frequency and degree of rate filings while remaining diligent in review. The rating agency said rate filing backlogs fell and decision wait times shortened, while underwriting income also rose for commercial insurers to $19.2 billion in 2025, even as some lines such as commercial auto still showed losses.