News
Property/casualty sector to see strong premium growth continue
The property and casualty insurance sector will see strong premium growth continuing in 2025, according to Conning.
During a recent webinar, Conning analysts said that inflation, tariffs, interest rates and geopolitical factors are among the issues influencing the P/C market for the remainder of this year and going into next year.
The total P/C industry expects to see a 7% growth in premium in 2025, Conning said. Commercial property and commercial auto will experience higher premium growth rates, at 12% and 11% respectively. Homeowners insurance expects to see a 10% annual premium growth with personal auto insurance coming at about a 7% annual premium growth rate.
Shifting legal environment a concern
Insurers told Conning that the legal system is their greatest near-term and long-term concern. Alan Dobbins, Conning director of insurance research, said the shifting legal environment has created concerns for insurers.
An increasing number of “nuclear” verdicts, increased third-party litigation funding, more complex class-action suits, rising claims severity and a rise in product liability claims are all contributing to insurer concern over the litigation environment, he said.
Sustained fiscal strain also was cited by P/C insurers as a high long-term concern but a low concern in the short term. Elevated inflation, modest growth in gross domestic product, a cooling labor market and near-record federal debt levels all contributed to the concern.
Property re/insurance continues to soften as casualty faces persistent uncertainty: The Baldwin Group
The commercial property insurance market is experiencing continued softening, while casualty lines face broad uncertainty, The Baldwin Group’s recent Q3 2025 Market Pulse report has revealed.
The report points at renewed competition, improving capacity, and more flexible structures for well-differentiated risks as key drivers for property market softening.
At the same time, the uncertainty in casualty lines (General Liability, Commercial Auto, and Umbrella) is being driven by legal system pressures, elevated claim severity, and selective underwriting.
“While property conditions continue to moderate, casualty outcomes remain highly situational after several years of being in a state of flux. We are no longer in a hard market – we’re in a disciplined one. Capital is available but is chasing quality. The winners will be those who treat risk management as a competitive advantage, not as a compliance exercise,” said Leslie Nylund, National Managing Director of Broking and Insurance Company Partnerships at The Baldwin Group.
Don’t Look Now, But Citizens Is No Longer the Largest Property Insurer in Florida
Citizens Property Insurance Corp., the state-created insurer of last resort, is no longer the largest carrier in Florida. The ranking is seen as a significant milestone in the push for a more stable, market-based insurance market.
Citizens’ leadership announced late last week that October takeouts and assumptions by other insurers had trimmed Citizens’ policy count to about 560,000 – a level not seen since spring of 2021, just before a litigation crisis worsened and multiple carrier insolvencies began to balloon Citizens’ exposure.MORE
Hagerty Announces New Partnership with Liberty Mutual
Hagerty, Inc. (NYSE: HGTY), an automotive enthusiast brand and a leading specialty vehicle insurance provider, today announced that the company has signed a new partnership with Liberty Mutual Insurance to offer enhanced collectible car insurance to Liberty Mutual and Safeco customers.
In this partnership, Liberty Mutual, the seventh largest auto insurer in the United States, will offer market-leading collectible car coverage through Hagerty to new and existing policyholders, beginning in 2026.
McKeel Hagerty, Chief Executive Officer and Chairman of Hagerty added, "Carrier partnerships continue to be one of our growth engines, and we're excited to build our relationship with Liberty Mutual and Safeco offering our best-in-class coverage and service for collectible vehicles and their passionate owners. It's another example of how Hagerty works to ensure that driving enthusiasts have access to all the products and services they need to protect, buy, sell and enjoy their special cars."
"In order to be the most trusted brand to independent agents and their customers, we must be providing superior products, claims handling and service to meet their needs," said Luke Bills, Liberty Mutual President, Independent Agent Distribution, US Retail Markets. "This partnership with Hagerty, the premier specialist in the collectible car insurance space, epitomizes our commitment to delivering on that promise."
Telematics, Driving & Insurance
The New Race to Your Wreck: State Farm, Automakers, and Your Next Collision » Live Insurance News
The New Race to Your Wreck: State Farm, Automakers, and Your Next Collision
State Farm is rolling out sophisticated accident detection in its mobile app, a move that promises faster help and smoother claims. But it also signals a new battleground in the auto industry. A race between insurers and automakers to be the first to know you’ve crashed—and the first to tell you where to go. A race that will directly impact drivers and the body shops that repair their cars.
The new feature, launching first in Illinois and Florida, uses a smartphone’s sensors to detect a collision. It checks if the driver is responsive. If not, it can automatically call for emergency services. If the driver requests a tow truck through the app, it kicks off the claims process instantly. A big step forward. Faster first notice of loss (FNOL). Shorter claim cycles. For everyone involved, from customer to insurer, that sounds like a win.
But another powerful player is watching. And competing.
OEM stands for Original Equipment Manufacturer. Think Ford, Toyota, General Motors—the company that built your car. For customers, OEMs are more than just a brand. They set the factory specifications for how your car should perform and be repaired. They manufacture original parts and are increasingly responsible for the complex safety systems, like cameras and sensors, that require precise calibration after a collision.
Following OEM repair procedures can be crucial for maintaining your vehicle’s safety and warranty. This is where the tension begins. When you crash, who do you trust to guide your repair? The company that insures your car, or the company that built it?
The Race to First Notice of Loss
Both insurers and OEMs want to be the first to know about an accident. This “first notice of loss” is the starting pistol for the entire claims and repair process. State Farm’s app uses your phone’s accelerometer and GPS. A smart, accessible solution.
Financial Results
GEICO ends Q3 with $1.7 billion profit
GEICO ended the third quarter of 2025 with a $1.7 billion underwriting profit, a ~13% decrease ($260M) compared to the same period last year.
Premiums written increased $563 million (5%) in the third quarter and $1.8 billion (5.6%) in the first nine months of 2025 compared to 2024, reflecting an increase in policies-in-force.
Losses and loss adjustment expenses increased $413 million (5.4%) in the third quarter and $613 million (2.7%) in the first nine months of 2025 compared to 2024.
GEICO’s loss ratio (losses and loss adjustment expenses to premiums earned) was 71.5% in the third quarter and 70.8% in the first nine months of 2025, an increase of 0.1 percentage points and a decrease of 1.8 percentage points, respectively, compared to the corresponding periods in 2024.
The loss ratio decline in the first nine months reflected higher average earned premiums per policy, lower claims frequencies, lower catastrophe losses and more favorable development of prior accident years’ claims estimates, partially offset by increases in average claims severities. Losses and loss adjustment expenses from Hurricane Helene were approximately $260 million in the third quarter and first nine months of 2024.
CNA FINANCIAL ANNOUNCES THIRD QUARTER 2025 NET INCOME OF $1.48 PER SHARE AND RECORD CORE INCOME OF $1.50 PER SHARE
-Net income of $403 million versus $283 million in the prior year quarter; core income up 40% to a record $409 million versus $293 million in the prior year quarter. - Year to date core income up 5% to a record $1,025 million.
P&C core income of $456 million versus $346 million, reflects lower catastrophe losses, improved underlying underwriting results and higher net investment income.
P&C combined ratio of 92.8%, compared with 97.2% in the prior year quarter, including 1.5 points of catastrophe loss impact compared with 5.8 points in the prior year quarter.
P&C underlying combined ratio was 91.3%, compared with 91.6% in the prior year quarter. P&C underlying loss ratio was 61.9% and the expense ratio was 29.1%.
P&C segments, excluding third party captives, generated gross written premium growth of 2% and net written premium growth of 3%. P&C renewal premium change of +4%, with written rate of +3% and exposure change of +1%.
CNA Financial Corporation (NYSE: CNA) today announced third quarter 2025 net income of $403 million, or $1.48 per share, versus $283 million, or $1.04 per share, in the prior year quarter. Net investment losses for the quarter were $6 million compared to $7 million in the prior year quarter. Core income for the quarter was a record $409 million, or $1.50 per share, versus $293 million, or $1.08 per share, in the prior year quarter.
Our Property & Casualty segments produced core income of $456 million for the third quarter of 2025, an increase of $110 million compared to the prior year quarter reflecting lower catastrophe losses, improved underlying underwriting results and higher net investment income. P&C segments, excluding third party captives, generated gross written premium growth of 2% and net written premium growth of 3%, due to renewal premium change of +4%.
Hagerty Reports Third Quarter 2025 Results; Increases 2025 Outlook
- The Company raised its full year 2025 outlook for Total Revenue growth to 14-15%, Net Income growth to 58-65%, and Adjusted EBITDA growth to 37-41%
- Third quarter 2025 Total Revenue increased 18% year-over-year to $380.0 million, and year-to-date 2025 Total Revenue increased 18% to $1,068.3 million
- Third quarter 2025 Written Premium increased 16% year-over-year to $334.0 million, and year-to-date 2025 Written Premium increased 13% to $934.4 million Q3 DETAILS
Hagerty, Inc. (NYSE: HGTY), an automotive enthusiast brand and leading specialty vehicle insurance provider, announced today financial results for the three and nine months ended September 30, 2025.
"We delivered high rates of growth through the third quarter of 2025 with year-to-date revenue gains of 18%. Margins continued to expand as we scale up our business while maintaining tight cost discipline, resulting in year-to-date net income growth of 73%, and Adjusted EBITDA gains of 46%," said McKeel Hagerty, Chief Executive Officer and Chairman of Hagerty.
"Our strong business momentum allowed us to increase our 2025 outlook for the second straight quarter as we help car enthusiasts protect, buy and sell, and enjoy their special vehicles. We now expect to deliver total revenue growth of 14-15% and net income growth of 58-65% in 2025. We believe 2026 is shaping up to be another great year of sustained growth and margin expansion, and we continue to develop our growth pipeline through 2030, including new partnerships," added Mr. Hagerty.
Climate/Resilience/Sustainability
Hurricane Melissa caused up to $52 billion in damage
Hurricane Melissa caused an estimated $48 billion to $52 billion in damage when it hit parts of the Caribbean in late October, according to a new report from AccuWeather.
The estimate includes insured losses as well as tourism losses, disruptions to commerce, damage to infrastructure, medical costs, evacuation expenses, crop losses and government expenses for clean-up operations.
Melissa is the costliest storm to hit the Atlantic basin so far this year.
“The devastation is heartbreaking,” said Jonathan Porter, AccuWeather’s chief meteorologist, in a statement. “Hours of extreme winds and powerful storm surge, combined with days of torrential rainfall, destroyed thousands of homes and businesses. Lives have been turned upside down by this storm. Many farmers and fishers across the islands were still recovering from the damage caused by Hurricane Beryl last year, when Melissa hit. Many businesses may be shut down for weeks, months or even years. Some may never be able to recover.”
Research
Reinventing insurance: PwC
For decades, insurers benefited from a stable business environment with relatively straightforward risk and capital management considerations. However, business as usual has turned into business as unusual. Social, technological, economic, environmental and political risks have become increasingly volatile. As a result, covering more frequent and severe loss events while operating a capital-intensive business is much more challenging. 93%
Of insurance executives say: The key risks facing financial services are interconnected and amplify each other. The pace of change in the industry has accelerated beyond what traditional strategic planning can effectively address.
Because of these challenges, we regularly tell carriers—traditionally a cautious lot— there's an urgent need for change. But we also tell them that there is great potential for reinventing their businesses and operations, redefining the very nature of insurance. Considering the obstacles the industry faces, why are we optimistic?
For starters, technology is enabling business and operational improvements that until recently could only be dreamed of. Satellites, drones and sensors are increasingly connected and provide more and better data that help carriers and their stakeholders manage property, health and longevity risks in real time, not just retroactively. In fact, we’re nearing the point where insurers, armed with deep insights into what causes loss and how, can move from just compensating stakeholders after claims events to helping them avoid loss in the first place—a truly profound reinvention of the meaning of insurance. CONTINUES
Fraud
Allstate alleges nine DME firms ran $679k fraud scheme
Allstate has accused nine medical equipment companies of running a $679,000 fraud ring that exploited New York's no-fault auto insurance system.
In a lawsuit filed October 28 in federal court, the insurer alleges the companies operated what appeared to be separate businesses but shared a single phone number and coordinated to bill for unnecessary medical devices following car accidents.
The case invokes federal racketeering statutes and targets a network of durable medical equipment suppliers that allegedly dispensed pneumatic compression devices, electrical stimulation units, and bone growth stimulators to patients who didn't need them.
At the heart of the alleged scheme was a simple deception: nine companies - BSD OS, Luminex BK, TM OS, Vital Craft OS, Harmony OS, Pinnacle OS, Wellspring Solutions, Nexgen Line, and Platinum Line - presented themselves as independent operators while using the same telephone number, (914) 308-1671, on delivery receipts submitted to Allstate.
The insurer claims the companies falsified their business addresses on licensing applications, listing virtual office spaces, shipping stores, and coworking facilities as their headquarters. BSD OS, for instance, listed an address at "Offices at Penn Place" where Allstate says it had no actual presence. Nexgen Line's listed location was a PostNet shipping center. Platinum Line claimed to operate from a facility called NexDoor that offers room rentals and mail services.
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