Verisk: P&C industry saw $11.5b underwriting gain through first half of 2025

The U.S. property and casualty insurance industry saw an estimated $11.5 billion underwriting gain in the first half of 2025, according to insights from Verisk and the American Property Casualty Insurance Association (APCIA). Though Q1 losses outpaced historical averages – driven by significant loss from the Palisades and Eaton wildfires – losses stabilized in the second quarter and the industry maintained profitability, which Verisk attributes to adequate premium rates and investment gains. The estimated underwriting gain of mid-year 2025 is an improvement from last year's gain of $3.5 billion. 

"Net written premiums growth slowed to 1.9 percent. The lack of any significant natural catastrophes in the second quarter helped offset the record-breaking catastrophe losses related to the California wildfires and severe convective storms impacting Texas and Georgia earlier in the year," said Robert Gordon, senior vice president of policy, research and international at APCIA in the press release. "However, the U.S. is now entering the height of hurricane and wildfire season, so time will tell if the industry is able to maintain underwriting gains through year-end."

According to Verisk's data, insurers wrote $472 billion in premiums during the first half of 2025 versus $464 billion during the same period in 2024, and premiums grew nearly 4% to $453 billion through this mid-year. Incurred losses and loss adjustment expenses rose by 2.1% this year, and the combined ratio – which Verisk notes is a significant measure of profitability for insurance carriers – improved to over 96 percent.

"Insurers are navigating a new era of risk, where extreme weather events are no longer anomalies and frequency perils are now persistent stressors on underwriting performance, as discussed in Verisk's 2025 Global Modeled Catastrophe Losses report," said Saurabh Khemka, co-president of underwriting solutions at Verisk.

Despite surplus levels remaining high, with a slight increase to $1.08 trillion from $1.07 trillion at mid-year 2024, factors such as inflation and climate-related losses add pressure to longer-term profitability.

"While some lines are showing signs of improvement, the broader industry continues to walk a fine line. Combined ratio has edged down slightly from this time last year, reflecting underwriting discipline, but escalating catastrophe losses— most notably January's unprecedented California wildfires—underscore the volatility ahead," added Khemka. "Predictive analytics, granular data and adaptive pricing strategies can help insurers respond to a rapidly evolving risk landscape."

The results shared from Verisk and the APCIA's data are consolidated estimates based on reports accounting for about 97% of all business written by P&C insurers, which is based on annual statements filed with insurance regulators by private U.S. P&C insurers, reinsurers, excess and surplus insurers and domestic insurers owned by foreign parents. This excludes state funds for workers' compensation and other residual market insurers, the National Flood Insurance Program (NFIP) and foreign insurers.