P&C $11.2B Underwriting Income Amidst Record Property Insurance Costs  September 12th 2025

Best’s Special Report: U.S. Property/Casualty Industry Records $11.2 Billion in Underwriting Income in First-Half 2025

The U.S. property/casualty (P/C) industry recorded $11.2 billion in net underwriting income in the first half of 2025, a significant improvement from the $2.9 billion posted 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: Six-Month 2025 US Property/Casualty Financial Results,” and the data is derived from companies’ six-month 2025 interim period statutory statements that were received as of Aug. 26, accounting for an estimated 96% of total industry net premiums written.

According to the report, the P/C industry’s combined ratio improved to 96.4 in first-half 2025 from 97.8 in the same period of 2024. AM Best estimates that catastrophe losses accounted for 10.9 percentage points on the six-month 2025 combined ratio, up from an estimated 8.8 points in the previous year.

Growth of 7.5% in net earned premiums in the six-month period offset increases in incurred losses and loss adjustment expenses (LAE), is largely attributable to the January 2025 California wildfires, and other underwriting expenses. An increase in net investment income aided the underwriting gain, boosting pre-tax operating income by nearly 25%. However, a substantial reduction in net realized capital gains, driven primarily by a $47.5 billion decline at National Indemnity Company, contributed to the industry’s net income being cut nearly in half from the same prior-year period to $50.3 billion.

US property insurance costs hit their highest ever level | Mortgage Professional

New report shows average annual insurance payment skyrocketed again in the first half of the year, only adding to affordability woes

Property insurance costs for US homeowners with mortgages climbed to a new record in the first half of 2025, according to the latest ICE Mortgage Monitor report. The average annual insurance payment on a mortgaged single-family home jumped 11.3%, or $20 per month, compared to last year, pushing the typical bill to nearly $2,370. That figure now represents 9.6% of average mortgage-related expenses, the highest share on record.

The report found that insurance now accounts for 9.6% of average mortgage-related expenses, the highest share ever recorded. Over the past five and a half years, the average property insurance payment has risen by nearly 70%, more than double the increase for principal, interest, and taxes.

“It’s not just rising home prices, but also the rising cost of insurance coverage impacting homeowners across the US,” the report said. ICE analysts flagged that while interest payments rose 8% year-over-year, property insurance costs outpaced all other components, with principal payments up just 1% and property taxes up 5%.

Regional disparities widen

Florida and Gulf Coast borrowers, long accustomed to high premiums, saw some relief as legislative changes encouraged private insurers to return and reduced the share of homeowners relying on state-backed insurance plans.

In Miami, the share of mortgage holders on state-backed policies dropped from 46% to 27% in 18 months. “Legislation in Florida aimed at reducing frivolous insurance-related lawsuits has contributed to a sharp reduction in the number of Florida homeowners on state-backed insurance plans,” ICE said.

Meanwhile, California homeowners faced the sharpest increases, with Los Angeles premiums up 9% in just six months and nearly 20% year-over-year, largely due to wildfire risk.

Auto loan delinquencies signal bigger trouble, report says

[Ed. Note: This will make it even more difficult to settle the growing number of Total Loss claims which now represent over 30% of late model vehicles, and especially EVs.]

The growing costs to buy and maintain a car – exacerbated by inflation and tariffs – are leading to rising auto loan defaults and repossessions and a potential crisis for American consumers left unprotected by the federal government, according to a new report by a consumer advocacy organization.

The record number of defaults is a canary in the coal mine for large-scale economic problems, the Consumer Federation of America warned.

"Delinquencies, defaults, and repossessions have shot up in recent years and look alarmingly similar to trends that were apparent before the Great Recession," according to a report by the CFA, which gave USA TODAY an exclusive first look.

7 Years of Double-Digit Growth; New Players on Top 25 E&S Insurers List

2024 marked the 7th straight year of double-digit growth for the U.S. excess and surplus lines market, but the top 25 players no longer command 70 percent of the pie, according to a new report.

AM Best’s latest report on the E&S segment, “Market Need for Specialized Expertise Propels U.S. Surplus Lines Market,” part of an annual series commissioned by the Wholesale & Specialty Insurance Association (WSIA) Education Foundation since 1994, found that 30 years later, direct E&S premiums written by the top 25 groups and Lloyd’s accounted for roughly two-thirds of the $129.8 billion total.

For much of the past three decades, the top 25 surplus lines groups, combined with the syndicates comprising the Lloyd’s market, have accounted for more than 70-80 percent of the surplus lines market direct premiums written, AM Best reported.

Excluding $20.8 billion of E&S premium from the Lloyd’s market, the 25 groups accounted for less than half (49.7 percent) of surplus lines premium, down from 51.3 percent in 2023 and 53.5 percent in 2022.

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