Best’s Special Report: U.S. Property/Casualty Industry Sees Significantly Improved Underwriting Gain in First Nine Months of 2025

OLDWICK, N.J.--(BUSINESS WIRE)--
The U.S. property/casualty (P/C) industry recorded a $35 billion net underwriting gain in the first nine months of 2025, a significant improvement from the nearly $4 billion gain recorded 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: Nine-Month 2025 US Property/Casualty Financial Results,” and the data is derived from companies whose nine-month interim period statutory statements were received as of Dec. 1, representing an estimated 98% of total industry net premiums written.

According to the report, muted catastrophe losses during third-quarter 2025 led to a 7% increase in net premiums and virtually no change in losses and loss adjustment expenses incurred, as compared with the prior year’s nine-month period. The property/casualty industry’s combined ratio improved by four percentage points to 94.0, with catastrophe losses accounting for an estimated 8.0 percentage points on the nine-month 2025 combined ratio, down from 8.7 points in the first nine months of 2024.

A 5.9% increase in net investment income aided the nine-month 2025 underwriting gain in boosting pretax operating income by 52% to $102.4 billion. However, an 80% reduction in net realized capital gains, driven primarily by a combined $60.5 billion decline at three Berkshire Hathaway companies, contributed to the industry’s net income declining by 23%, as compared with the same prior-year period, to $100.9 billion.

To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=360907.

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.

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Source: AM Best