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Falling reinsurance prices help US homeowners insurers turn around results
AM Best said the US homeowners segment swung from a more than $1.3 billion net underwriting loss in 2024 to a $16.5 billion net underwriting gain in 2025.
Falling reinsurance prices are helping drive a turnaround in the US homeowners insurance market, AM Best said in a new report. The rating agency said the segment improved sharply in 2025, reversing prior years of severe losses.
AM Best reported that US homeowners results moved from a more than $1.3 billion net underwriting loss in 2024 to a $16.5 billion net underwriting gain in 2025. The report, titled “A Myriad of Factors Lead to Markedly Improved Homeowners Results,” attributed the shift to factors including enhanced pricing sophistication, improved catastrophe risk management, and more consistent use of disciplined underwriting guidelines.
The report also pointed to a softening in the property reinsurance sector, which reduced pressure on primary insurers and gave them room to slow rate hikes. AM Best said that in many cases insurers filed for rate decreases, which it observed in late 2025 and early 2026.
AM Best noted that property catastrophe reinsurance renewal pricing peaked in 2023 and began softening in 2024, a downtrend it said continued through the 2026 reinsurance renewals. The agency said the stabilizing reinsurance market helped support improved homeowners results.