The United States property and casualty industry posted a net underwriting gain of $35 billion in the first nine months of 2025, according to AM Best’s latest P&C financial results report. This shows a significant increase from the $3.7 billion reported for the same period in 2024.
Q3 2025 benefited from low catastrophe losses, which contributed to a 7% increase in earned net premiums while expenses and losses remained relatively stable year-over-year. Overall, the industry’s combined ratio climbed by four percentage points to 94. Meanwhile, catastrophe losses dropped to 8 percentage points from the 8.7 seen in the same period in 2024.
AM Best’s report shows that policyholder surplus also increased this year, rising 6.8% from the end of 2024 to $1.2 trillion, driven by $131.3 billion in net income and $20.5 billion in other surplus reductions and stockholder dividends.
The first three quarters of 2025 also showed a 5.9% in net investment income and a 52% increase in pretax operating income, which brings that total to $102.4 billion. This period also saw an 80% decrease in net realized capital gains, which AM Best attributes to a $60.5 billion combined decline at three Berkshire Hathaway companies, which resulted in net income falling by 23% to around $100.9 billion.
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