U.S. P&C Industry Posts Stronger 2025 Results Despite Wildfire Losses

Industry financial results for 2025 show a significant improvement in underwriting performance, even with early-year wildfire losses in Southern California.

Underwriting Performance

• Net underwriting gain reached $35.3 billion, compared to $4 billion in the same period of 2024.

• The combined ratio improved to 94 percent, down from 97.9 percent, marking the first sub-95 result in roughly a decade.

Premium Growth

• Net written premiums increased 5.1 percent to $740.7 billion.

• Net earned premiums rose 6.9 percent to $711.2 billion.

Capital Position

• Policyholders’ surplus strengthened to $1.20 trillion, up from $1.12 trillion in 2024.

Loss and Investment Trends

• Incurred losses and loss adjustment expenses grew by 0.6 percent, compared to 2.7 percent growth the prior year.

• Realized capital gains declined to $15.6 billion, down from $75.5 billion in 2024. After adjusting for a one-time prior-year event, investment performance remained relatively stable.

Mid-Year Snapshot

• First-half underwriting gain totaled $11.6 billion, compared to $3.8 billion in the first half of 2024.

• Written premiums reached $489 billion, reflecting 5.4 percent growth.

• Earned premiums climbed to $469 billion, up 7.4 percent year over year.

• Mid-year policyholders’ surplus stood at $1.13 trillion, compared to $1.07 trillion the previous year.

Market Context

The improved results reflect moderated catastrophe losses, sustained premium growth, and stronger pricing discipline across most lines of business.

The data is based on statutory filings from private U.S. property and casualty insurers and represents approximately 97.9 percent of the domestic P&C market, excluding certain state and federal programs.