US Property-Casualty Industry Posts $22.9 Billion Underwriting Profit

The US property-casualty insurance industry recorded a $22.9 billion net underwriting gain in 2024, marking its first underwriting profit since 2020 and a sharp reversal from the $21.3 billion loss in 2023, according to a new report from AM Best.

The findings are detailed in a Best's Special Report, titled "First Look: 2024 US Property/Casualty Financial Results." The analysis is based on statutory statements from insurers representing approximately 97 percent of the industry's total net premiums written, as of March 11, 2025.

The report shows the industry's combined ratio improved by 5 percentage points to 96.6 in 2024. Catastrophe losses accounted for an estimated 8.7 points on the combined ratio, consistent with the prior year. A 9.8 percent rise in net earned premiums helped counterbalance a 2.1 percent increase in incurred losses and loss adjustment expenses, as well as a 9.8 percent uptick in other underwriting expenses. The improvement in personal lines underwriting performance was a key driver of the overall positive results.

In addition to the underwriting gain, earned net investment income rose by 21.3 percent, boosting pretax operating income by 123.5 percent to $109.3 billion. Net income climbed 89.8 percent year over year to $169.3 billion, aided by a combined $22.8 billion increase in net realized capital gains from 4 Berkshire Hathaway Insurance Group companies.

The industry's surplus reached $1.1 trillion at year-end 2024. This increase was fueled by $174.1 billion in net income and contributed capital, though partially offset by a $12.9 billion change in unrealized losses, $3.7 billion in other surplus losses, and $85.9 billion in stockholder dividends.

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