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US insurers face falling property premiums as casualty pricing climbs
Commercial premiums declined 1.2% in Q1 2026, ending a 33-quarter streak of increases, while commercial auto rates continued rising at about 5.8% a year.
Insurance Business reports that the US insurance market is showing a widening split between property and casualty pricing as Q2 2026 earnings largely beat last year’s results but underlying rate trends move in different directions for carriers and brokers.
According to Insurance Business, average commercial premiums fell 1.2% in Q1 2026, the first decline in nearly nine years, while commercial auto rates kept rising through the same period on a 59-quarter streak, climbing at roughly 5.8% a year. The outlet linked that auto rate pressure to large liability payouts, including nuclear verdicts totaling $31.3 billion in 2024.
Insurance Business said property-focused books benefited from the current loss environment, citing examples such as Allstate’s 86.6% combined ratio and Liberty Mutual’s $2.6 billion net income for the quarter, alongside Travelers’ 86.8% combined ratio. Still, the article emphasized that underwriting has not broadly improved, pointing to a light catastrophe season and reduced natural catastrophe losses of about $36 billion in the first half of 2026, down from $40 billion-plus in each of the previous three first halves.
The report also described Florida as a partial exception for specialty property insurers following tort reforms in 2022 to 2023. Insurance Business noted Heritage Insurance Holdings posted record second-quarter net income of $61.7 million, up 28.5%, while American Coastal Insurance reported net income of $21.9 million even as gross written premiums declined roughly 5% amid continuing rate softening.