Financial Results
Travelers beats profit estimates on stronger underwriting - Business Insurance
Travelers beat Wall Street estimates for fourth-quarter profit on Wednesday, driven by stronger underwriting performance and higher investment returns.
Insurance spending has stayed resilient despite cutbacks elsewhere, as businesses and individuals continue to seek coverage against financial risks, natural disasters and other potential losses.
Net written premiums – the total value of policies sold after accounting for reinsurance – rose 1% in the fourth quarter to $10.86 billion.
“The business performed exceptionally well across the board, as strong underlying profitability, net favorable prior year reserve development and a lower level of catastrophe losses drove the improvement,” Travelers CEO Alan Schnitzer said in a statement.
The company posted catastrophe losses of $95 million on a pre-tax basis in the reported quarter, primarily due to winter storms in multiple states.
Catastrophe losses remain a major swing factor for U.S. insurers, typically driven by hurricanes, wildfires and other severe weather events, with the timing and severity of these events significantly affecting results.
Travelers is reducing its exposure to large property accounts where catastrophe risk is not matched by pricing, sticking to strict underwriting discipline in an environment where some competitors are still chasing volumes.
Its underlying combined ratio improved 1.8 percentage points to 82.2% in the quarter.
News
AMERICAN PROPERTY CASUALTY INSURANCE ASSOCIATION: "CONSUMER WATCHDOG" RAKED IN $1.4 MILLION+ IN STATE FEES IN 2025
Data released today from the California Department of Insurance (CDI) shows that "Consumer Watchdog," a controversial Santa Monica advocacy organization, received $1,427,280.80 in fees from the state's inventor compensation program in 2025.
The figure represents 96.78 percent of the funds awarded by the department and is more than double the $643,530.15 Consumer Watchdog received in 2024. Only one other organization, the Consumer Federation of California Education Foundation received any other funds ($47,500).
The new data confirms that Consumer Watchdog continues to exploit the intervenor program it wrote into Prop 103. The group charges upwards of $650 per hour to intervene in insurance rate filings.
In the past decade, the group, which has zero members, received more than $11.2 million in fees from the program since 2013. These fees are ultimately paid for by ratepayers.
In September, CDI Commissioner Ricardo Lara proposed modernizing the program to diversify the recipients of intervenor program funds. He said his proposed reforms "represent another critical step toward building a market that protects consumers, holds insurance companies accountable, and bases rates on facts rather than delays."
2026 Outlook/Predictions
US property/casualty premium growth to ease in 2026: Swiss Re
U.S. property/casualty insurance premium growth will likely slow in 2026 as insurers compete more for business, Swiss Re said in a report issued Tuesday.
The reinsurer estimates that U.S. direct written premium for commercial and personal lines business grew 5.5% in 2025.
“We expect nominal premium growth to reach a trough at about 3% in 2026 and normalize to 3.5% in 2027 as the cycle moves toward balance,” the report said.
The deceleration follows average annual growth rates of about 10% between 2021 and 2024, it said.
The decrease follows “an exceptionally strong 2025,” which saw lower catastrophe losses and rising investment income. The industry will likely report a 15% return on equity for 2025, Swiss Re said. It forecasts 12% ROE in 2026 and 10% in 2027.
The reinsurer said it expects underwriting results to deteriorate as increased profitability results in insurers deploying more capital.
Six Forces That Will Reshape Insurance in 2026
The insurance industry is entering one of its most promising periods as market conditions shift.
As carriers continue to invest in modern infrastructure, they will find new markets opening up. Equally, as agencies embrace specialization, they will discover profitable niches.
Technology is set to fast-track growth, partnerships and innovation, which is a cycle that will ultimately build momentum rather than create trade-offs. The following are six trends and significant shifts we can expect to see over the year ahead.
Aviad Pinkovezky is CEO of First Connect. He was formerly head of Product at Hippo Insurance, a smart homeowners InsurTech company.
ValuePenguin, The Zebra make 2026 auto insurance predictions
ValuePenguin states in its latest “State of Auto Insurance” report that it expects car insurance prices to go up this year by an average of less than 1%, while The Zebra predicts 19 states will see an increase in auto insurance premiums.
“That’s the smallest year-over-year increase since 2022, before high inflation caused car insurance rates to skyrocket with increases of 11.57% in 2023, 17.13% in 2024, and 7.56% in 2025,” the ValuePenguin report states.
However, that depends on the state, as rates may increase by over 10% or drop by about 6%, according to the report.
ValuePenguin reports that the average cost of full coverage car insurance in the U.S. this year is $208 per month.
Auto insurance is expected to cost an average of $2,496 a year nationwide for a full coverage policy.
Climate/Resilience/Sustainability
Severe Convective Storms Now the Costliest Insured Peril of the 21st Century, Aon Reports
Aon plc (NYSE: AON), a leading global professional services firm, today launched its annual Climate and Catastrophe Insight report, revealing that severe convective storms (SCS) have surpassed tropical cyclones to become the costliest insured peril of the 21st century.
The report shows how increasingly common, high–volume events are reshaping global loss patterns and highlights the critical importance of both physical and financial resilience to help organizations manage volatility and unlock insurability.
Global economic losses from natural disasters reached $260 billion in 2025 — the lowest since 2015 — yet insured losses remained elevated at $127 billion, marking the sixth consecutive year that insurance payouts exceeded the $100 billion threshold. This divergence reflects how concentrated, high–severity frequency peril events — particularly in the United States — continue to drive substantial insured loss even in below–average hazard years. In many regions, especially emerging markets, more than half of economic losses remained uninsured, leaving millions exposed to financial risk.
By quantifying the return on investment of mitigation measures and demonstrating credible loss reduction to insurers and capital providers, organizations can reshape how risk is financed and unlock more affordable, sustainable insurance coverage. This creates opportunities for the industry to deploy capital more effectively and close longstanding protection gaps.
"This year's report highlights the growing need for collaboration among organizations, insurers, governments and communities," said Greg Case, president and CEO of Aon. "The insurance industry is well-positioned to act as a strategic partner to help navigate these challenges, bringing record levels of capital to help clients respond to weather risks and build increasingly diverse alternative risk transfer solutions to strengthen resilience in the face of a changing climate."
2025 insured cat losses total $129bn, with US accounting for 78%, says Gallagher Re - Reinsurance News
Gallagher Re, the reinsurance broking and advisory firm, released its full-year Natural Catastrophe and Climate Report for 2025, reporting that global
Gallagher Re, the reinsurance broking and advisory firm, released its full-year Natural Catastrophe and Climate Report for 2025, reporting that global natural catastrophe losses during 2025 were largely manageable for the re/insurance sector, with total insured losses for the year estimated at USD 129 billion, which is around 5% below the average recorded between 2015 and 2024.
Losses were heavily concentrated in the United States, which accounted for USD 100 billion, or 78% of global insured losses. The most expensive event sequence for insurers occurred early in the year, with the January Los Angeles wildfires generating an estimated USD 41 billion in insured losses.
Severe convective storms were responsible for at least 47% of total insured losses worldwide, equating to USD 60 billion, of which USD 51 billion was recorded in the US.
InsurTech/M&A/Finance💰/Collaboration
InsurTech Ethos Hopes to Raise $211 Million in IPO
Insurance platform Ethos Technologies hopes to raise $211 million from its initial public offering.
The company and some of its shareholders aim to sell 10.5 million shares at a price between $18 and $20 apiece, according to a Tuesday (Jan. 20) securities filing.
The filing was flagged in a report by Bloomberg News, which says that this range would give Ethos a market value of $1.3 billion. The company was last valued at $2.7 billion in a funding round in 2021, the report added.
Ethos announced its plans to go public last year. The company’s platform, per its filing, offers consumers with affordable coverage in minutes, while giving agents an instant selling process and next-day commissions, while providing strong risk management capabilities to carriers.
The company said in its Form S-1 that it began operations in 2018 and that it has since expanded from one product to ten, surpassing 450,000 cumulative policies activated in 2025.
For the 12 months ended June 30 of last year, Ethos earned revenue of $320 million, year-over-year revenue growth of 57% and a gross margin of 98%.
Announcements
Alacrity's Managed Repair Division Rebrands as Altimeter Solutions Group Following Investment from BV Investment Partners
Alacrity Network Solutions, the Managed Repair Division (MRP) of Alacrity Solutions, announced today that it will become an independent company following a strategic investment by BV Investment Partners, a leading private equity firm with deep experience in the insurance services sector. The new company will operate under the name Altimeter Solutions Group, reflecting its mission to elevate the managed repair experience for carriers, contractors, and policyholders.
The transaction positions Altimeter Solutions Group – one of the country's largest and most established managed repair networks with more than 25 years of operational history – to continue to pursue its growth strategy as a standalone organization. As an independent company, Altimeter will maintain its focus on investing in its contractor network, technology, and service capabilities that support carrier partners and policyholders nationwide. Under the new ownership structure, the company will maintain all existing staff, leadership, client relationships, and processes. There will be no disruption to current services, workflows, SLAs, or points of contact. The company emphasized that operational stability and continuity remain the top priority throughout the transition.
"Our leadership team, our people, and our mission will remain unchanged," said Jonathan Miko, who will continue to lead and will serve as CEO of Altimeter Solutions Group. "We are excited about this next chapter and the opportunity to continue building on the strong foundation established over the past 25 years, while remaining fully focused on delivering consistent, high-quality service to our carrier partners, contractors, and policyholders." BV Investment Partners' involvement provides meaningful capital support and strategic guidance, enabling the new entity to further invest in operational improvements, contractor network expansion, and platform modernization.
Progressive Insurance® Introduces Pet Insurance for Cats and Dogs
Progressive Insurance® today announced a new pet insurance offering designed to help people get the care their pets need by making veterinary care more affordable.
The new offering is underwritten directly by Progressive and its affiliated underwriting companies and administered by pet insurance program provider Companion Protect. Customers can expect the same high standard of service and support Progressive prides itself on across all its products, as well as competitive pricing and customizable options that allow customers to select the coverage that best fits their unique needs and budget.
"At Progressive, we share the love and enthusiasm people have for their pets and we're excited to continue to deliver on our commitment to helping people protect what matters most to them with this new offering," said Progressive Pet Insurance Business Leader Drew Purcell. "There's a growing demand for pet insurance and this new product reflects our dedication to meeting that need and building an enduring brand by expanding our portfolio into new markets with competitive prices and high-quality service."
Progressive Pet Insurance policies cost $47 per month on average, with premiums and eligibility that vary depending on age, breed, and other pet characteristics. Coverage options include Accident and Illness plans that cover things like emergency care, surgical procedures, medications and more. Policyholders can also add a Wellness endorsement to help pay for routine and preventive care such as vaccinations, teeth cleaning, and annual exams. Coverage is customizable, allowing customers to choose from multiple options for deductibles, reimbursement amounts and annual limits.
Claims
(2) Transforming Home Claims Through Data-Driven AI: A Strategic Imperative
How Leading Insurers Are Leveraging Remote Assessment Technology and Iterative AI Development to Revolutionize Claims Operations and Customer Experience
Executive Summary
At Reuters Events: Connected Claims USA 2025, Frank Cesario, Senior Director US Claims at LexisNexis Risk Solutions, presented a comprehensive framework for transforming home claims operations through strategic AI implementation and remote assessment technologies. With catastrophic claims comprising 42% of home insurance losses and days-to-first-pay metrics remaining stagnant, insurers must fundamentally reimagine their approach to claims processing. Cesario outlined a data-first methodology that prioritizes early policyholder engagement, iterative AI development, and computer vision-enabled remote assessments to address operational bottlenecks while improving customer satisfaction.
Awards
Property & Casualty Insurers Recognized for Digital Excellence in Corporate Insight's 14th Annual P&C Insurance Monitor Awards
Corporate Insight (CI), the leading provider of competitive intelligence and customer experience research to the financial services, insurance, and healthcare industries, today announced the winners of its 14th annual P&C Insurance Monitor Awards.
This year's program recognizes digital innovation and best practices across seven key categories: Account Information, Mobile App, Account Servicing, Design & Navigation, Profile & Settings, Support, and Prospect Experience.
Corporate Insight's P&C Insurance Awards Report recognizes top digital experiences across the industry.
Now in its fourteenth year, the awards program evaluated 16 leading P&C insurers in the P&C Insurance Monitor coverage group.
"This year's awards spotlight the carriers that are setting new standards for digital insurance experiences," says Jacob Littman, Insurance Research Manager at Corporate Insight. "From intuitive mobile platforms to streamlined self-service capabilities, winning firms demonstrate how thoughtful digital design and robust functionality can meaningfully enhance the policyholder experience across every touchpoint of the customer journey."