Insurance
Home›Insurance›Industry & Deals›A.M. Best says U.S. property-casualty mutual insurers…
A.M. Best says U.S. property-casualty mutual insurers net income rose in 2025
Underwriting income swung to about $14.8 billion in 2025 from a loss of $7.2 billion in 2024, helped by lower loss expenses and higher underwriting expense growth.
Insurance Journal reports that A.M. Best estimates total net income for U.S. property and casualty mutual insurers more than doubled in 2025 versus 2024 to about $42.6 billion.
The rating agency said underwriting income improved to about $14.8 billion after a loss of $7.2 billion in 2024, while loss and loss adjustment expenses declined about 2% year over year. It also noted underwriting expenses rose 5.8% in 2025 compared with 2024.
A.M. Best attributed part of the turnaround to mutual insurers filing for significant rate increases, restructuring discounts, and raising deductibles in years leading up to 2025, with those underwriting actions boosting revenue. The report also pointed to improved data analytics, enhanced technology, and risk modeling, alongside mutual carriers’ ability to price risks.
The segment includes reciprocal exchanges and insurance cooperatives, A.M. Best said, adding that mutuals sought more rate to address higher frequency and severity of secondary perils such as convective storms, wildfires, and flooding. It cited 23 events in 2025 with economic losses of at least $1 billion.