The U.S. property/casualty (P/C) industry recorded a $60.9 billion net underwriting gain in 2025, almost tripling the $22.1 billion posted in the previous year, according to a new AM Best report.

These preliminary results are detailed in a new Best’s Special Report, titled, “First Look: 2025 US Property/Casualty Financial Results,” and the data is derived from companies’ annual statutory statements received as of March 9, representing an estimated 96% of the P/C industry’s net premiums written.

According to the report, the P/C industry’s combined ratio improved significantly by 3.7 percentage points to 92.2 in 2025. Catastrophe losses accounted for an estimated 7.6 points on the 2025 combined ratio, down from an estimated 8.8 points in 2024. The improved underwriting results reflected a 6% increase in net earned premiums while incurred losses and loss adjustment expenses declined, due in part to muted catastrophe losses during the year.

The P/C industry also saw a 9% increase in net investment income in 2025, which along with the underwriting gain, boosted pre-tax operating income by 43%, to $153.1 billion. A 72% reduction in net realized capital gains (driven primarily by a combined $60.0 billion decline at three Berkshire Hathaway companies) in 2025 contributed to the industry’s net income declining nearly 10% from the prior year to $150.9 billion.

To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=363413.

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.

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