U.S. P/C Industry Delivers Best Results in 20 Years  April 16th 2026

U.S. P/C Industry Delivers Best Results in 20 Years

The U.S. property/casualty insurance industry delivered its strongest underwriting performance in 20 years in 2025, according to a new Fitch Ratings report. Results reflected continued improvement in personal lines, generally stable commercial line performance, favorable reserve development and the lack of hurricane landfall in the U.S.

While the industry faced slowing premium growth, earnings improved and capital remained at very strong levels.

Looking ahead, Fitch expects industry performance to moderate in 2026 but remain strong. Softer pricing, a more typical catastrophe environment and ongoing pressure in longer-tail casualty lines are likely to weigh on margins. Broader macroeconomic and geopolitical uncertainty could also create additional headwinds for underwriting and investment performance.

Progressive's Q1 Earnings Beat Estimates on Higher Premiums

Behind the Headlines

• Net premiums written were $23.6 billion in the quarter, up 6.5% from $22.2 billion a year ago.
• Net premiums earned grew 8% to $20.9 billion. The reported figure beat the Zacks Consensus Estimate by 1.5%.
• Operating revenues grew 8.2% year over year to $22.3 billion, driven by 8% higher net premiums earned, a 12.7% increase in net investment income, a 3.5% rise in fees and other revenues, and 13.5% higher service revenue. .

Total expenses rose 8.4% to $18.6 billion, attributable to 8% higher losses and loss adjustment expenses, a 5.6% increase in policy acquisition costs, a 12.1% rise in other underwriting expenses, and a 12% increase in service expenses.

Combined ratio — the percentage of premiums paid out as claims and expenses — deteriorated 40 basis points (bps) from the prior-year quarter’s level to 86.4.

Nationwide Returns to Growth With Tech-Driven Risk Prevention Strategy

Nationwide credits a focus on customers who embrace technology-driven risk prevention tools for recent growth and profitability in its property and casualty business, according to Mark Berven, president and COO of Nationwide Property & Casualty, as reported by BestWire.

The big picture: The strategy shift reversed a multi-year decline and restored underwriting profitability, positioning the 100-year-old mutual insurer to outpace competitors in 2026. The company is betting that policyholders willing to use predictive technology will generate fewer claims and accept more competitive pricing based on their lower risk profiles.

By the numbers:

• First quarter 2026 new business jumped 140% in personal lines, 75% in commercial lines, and 30% in agribusiness.
• Combined ratio post-dividends improved to 96.1 in 2025 from 103.5 a year earlier.
• Net operating income increased 37% to $4.3 billion in 2025.
• Weather loss volatility cut in half to about 5.5%.
• Technology investment: $1.5 billion through 2028, including $100 million annually on AI.

How it works: Nationwide targets policyholders who actively use predict and prevent resources — from water leak sensors and thermal imaging devices to telematics and gamification for drivers.

“For expected losses from frequency and severity moving forward, those efforts on predict and prevent, working with customers that resonate around that, has lowered our trend by about two-thirds," Berven said. “So that equates into how we build rates moving forward and provides more competitive capabilities.”

Marsh posts solid Q1 2026 growth despite litigation hit

Global broker Marsh has reported a strong start to 2026, delivering steady revenue and earnings growth despite a significant litigation-related charge weighing on reported profits.

The firm announced first-quarter revenue of $7.6 billion, up 8% year-on-year, with underlying revenue growth of 4%. Adjusted operating income rose 8% to $2.4 billion, while adjusted earnings per share (EPS) increased 8% to $3.29.

However, GAAP operating income declined 12% to $1.8 billion, largely due to a $425 million charge linked to the ongoing Greensill litigation.

The charge stems from a wave of legal claims brought after Greensill Capital, a supply chain finance firm, entered insolvency in 2021. Greensill’s failure triggered significant losses for investors and clients globally, leading to multiple lawsuits against financial institutions, insurers, and advisers connected to its operations.