-

Best’s Special Report: U.S. Property/Casualty Industry Records $11.2 Billion in Underwriting Income in First-Half 2025

OLDWICK, N.J.--(BUSINESS WIRE)--The U.S. property/casualty (P/C) industry recorded $11.2 billion in net underwriting income in the first half of 2025, a significant improvement from the $2.9 billion posted in the same prior-year period, according to a new AM Best report.

These preliminary results are detailed in a new Best’s Special Report, titled, “First Look: Six-Month 2025 US Property/Casualty Financial Results,” and the data is derived from companies’ six-month 2025 interim period statutory statements that were received as of Aug. 26, accounting for an estimated 96% of total industry net premiums written.

According to the report, the P/C industry’s combined ratio improved to 96.4 in first-half 2025 from 97.8 in the same period of 2024. AM Best estimates that catastrophe losses accounted for 10.9 percentage points on the six-month 2025 combined ratio, up from an estimated 8.8 points in the previous year.

Growth of 7.5% in net earned premiums in the six-month period offset increases in incurred losses and loss adjustment expenses (LAE), is largely attributable to the January 2025 California wildfires, and other underwriting expenses. An increase in net investment income aided the underwriting gain, boosting pre-tax operating income by nearly 25%. However, a substantial reduction in net realized capital gains, driven primarily by a $47.5 billion decline at National Indemnity Company, contributed to the industry’s net income being cut nearly in half from the same prior-year period to $50.3 billion.

To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=357789.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

Copyright © 2025 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.

Contacts

Matthew Coppola
Director, Data Management
+1 908 882 1707
matthew.coppola@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com

AM Best


Release Versions
Hashtags

Contacts

Matthew Coppola
Director, Data Management
+1 908 882 1707
matthew.coppola@ambest.com

Christopher Sharkey
Associate Director, Public Relations
+1 908 882 2310
christopher.sharkey@ambest.com

Al Slavin
Senior Public Relations Specialist
+1 908 882 2318
al.slavin@ambest.com

Social Media Profiles
More News From AM Best

AM Best Affirms Credit Ratings of Seguros Inbursa, S.A. Grupo Financiero Inbursa

MEXICO CITY--(BUSINESS WIRE)--AM Best has affirmed the Financial Strength Rating of A (Excellent), the Long-Term Issuer Credit Rating of “a+” (Excellent) and the Mexico National Scale Rating of “aaa.MX” (Exceptional) of Seguros Inbursa, S.A. Grupo Financiero Inbursa (Seguros Inbursa) (Mexico). The outlook of these Credit Ratings (ratings) is stable. The ratings reflect Seguros Inbursa’s balance sheet strength, which AM Best assesses as strongest, as well as its strong operating performance, neu...

AM Best Revises Outlooks to Positive for Ategrity Specialty Insurance Company Holdings and Its Subsidiaries

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has revised the outlooks to positive from stable and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a-” (Excellent) of Ategrity Specialty Insurance Company (ASIC) and its affiliate, Ategrity Specialty Insurance Limited (ASIL). Concurrently, AM Best has revised the outlook to positive from stable and affirmed the Long-Term ICR of “bbb-” (Good) of the holding company, Ategrity Specialty I...

AM Best Revises Outlooks to Negative for Kansas City Life Insurance Company; Downgrades Credit Ratings of Grange Life Insurance Company; Revises Issuer Credit Rating Outlook to Negative for Old American Insurance Company

OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has revised the outlooks to negative from stable and affirmed the Financial Strength Rating (FSR) of A- (Excellent) and the Long-Term Issuer Credit Rating (Long-Term ICR) of “a-” (Excellent) of Kansas City Life Insurance Company (Kansas City Life) [OTCQX: KCLI]. At the same time, AM Best downgraded the FSR to B+ (Good) from B++ (Good) and the Long-Term ICR to “bbb-” (Good) from “bbb” (Good) of Grange Life Insurance Company (Grange Life) (Columbus, OH). Th...
Back to Newsroom