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US homeowners insurers post underwriting profit for 2025
AM Best said the combined ratio improved to 84.5 in 2025 from 90.7 in 2024, marking a shift from prior underwriting losses.
U.S. homeowners multiperil insurers swung to underwriting profitability in 2025, reversing a $1.3 billion underwriting loss in 2024, according to AM Best as reported by Insurance Journal. The rating firm said insurers booked an underwriting profit of $16.5 billion in 2025, the line’s first underwriting gain since 2019.
Insurance Journal reported that AM Best attributed the turnaround to insurers improving how premiums match risk, with a relatively calm 2025 hurricane season also cited as supportive. AM Best said filings for rate increases slowed in the second half of 2025, a trend it said continued into 2026.
AM Best also pointed to benefits from price softening in the reinsurance market and the segment’s increased use of data, analytics, and modeling. It added that insurers have invested in underwriting, claim handling, loss control, and overall efficiency to improve bottom-line results, Insurance Journal said.
In its assessment, AM Best said the group’s combined ratio improved to 84.5 in 2025 from 90.7 in 2024, and 99.5 in 2017.