New Insurance Industry Report: First Quarter Losses Outpace Historical Averages but Stabilize in Second Quarter, Combined Ratio Improves
Verisk (Nasdaq: VRSK) and APCIA reported that the U.S. insurance industry achieved $11.5 billion in underwriting gains for the first half of 2025, improving from $3.8 billion in the same period of 2024. The industry saw premiums written increase to $472 billion, up from $464 billion year-over-year, while the combined ratio improved to 96.4% from 97.6%.
Despite significant first-quarter losses from the Palisades and Eaton wildfires, second-quarter performance stabilized. Policyholders' surplus remained strong at $1.08 trillion, though realized capital gains declined sharply to $6.8 billion from $58.1 billion in the previous year. The industry faces ongoing challenges from extreme weather events, inflation, and line-specific pressures impacting long-term profitability.
Verisk (Nasdaq: VRSK) e APCIA hanno riferito che il settore assicurativo statunitense ha registrato $11,5 miliardi di utili tecnici nella prima metà del 2025, in netto miglioramento rispetto ai $3,8 miliardi dello stesso periodo del 2024. I premi contabilizzati sono saliti a $472 miliardi, rispetto ai $464 miliardi dell’anno precedente, mentre il combined ratio è migliorato al 96,4% dal 97,6%.
Nonostante le perdite significative nel primo trimestre causate dagli incendi di Palisades ed Eaton, la performance del secondo trimestre si è stabilizzata. Il surplus degli assicurati è rimasto solido a $1,08 trilioni, sebbene le plusvalenze realizzate siano scese drasticamente a $6,8 miliardi dai $58,1 miliardi dell’anno precedente. Il settore continua a confrontarsi con sfide legate agli eventi meteorologici estremi, all’inflazione e a pressioni specifiche per linea che influenzano la redditività a lungo termine.
Verisk (Nasdaq: VRSK) y APCIA informaron que la industria de seguros de EE. UU. logró $11,5 mil millones en ganancias de suscripción en la primera mitad de 2025, mejorando desde $3,8 mil millones en el mismo período de 2024. Las primas suscritas aumentaron a $472 mil millones, frente a $464 mil millones interanuales, mientras que el ratio combinado mejoró al 96,4% desde 97,6%.
A pesar de las pérdidas significativas en el primer trimestre por los incendios de Palisades y Eaton, el desempeño del segundo trimestre se estabilizó. El superávit de asegurados se mantuvo sólido en $1,08 billones, aunque las ganancias de capital realizadas cayeron drásticamente a $6,8 mil millones desde $58,1 mil millones el año anterior. La industria enfrenta desafíos continuos por eventos meteorológicos extremos, inflación y presiones por línea que afectan la rentabilidad a largo plazo.
Verisk (Nasdaq: VRSK)와 APCIA는 미국 보험업계가 2025년 상반기에 115억 달러의 인수이익(언더라이팅 이익)을 기록했다고 보고했습니다. 이는 2024년 같은 기간의 38억 달러에서 개선된 수치입니다. 기술된 보험료는 4,720억 달러로 증가했으며 전년의 4,640억 달러에서 상승했고, 결합비율(컴바인드 레이쇼)은 97.6%에서 96.4%로 개선되었습니다.
팔리세이즈와 이튼 산불로 1분기에 큰 손실이 있었음에도 불구하고 2분기에는 실적이 안정되었습니다. 보험계약자 잉여금은 1.08조 달러로 견조했으나, 실현 자본이익은 전년의 581억 달러에서 68억 달러로 급감했습니다. 업계는 극심한 기상 이변, 인플레이션, 특정 보험종목의 압력 등으로 장기 수익성에 대한 지속적 도전에 직면해 있습니다.
Verisk (Nasdaq: VRSK) et l’APCIA ont indiqué que le secteur de l’assurance aux États-Unis a enregistré 11,5 milliards de dollars de bénéfices techniques au premier semestre 2025, contre 3,8 milliards sur la même période en 2024. Les primes souscrites ont progressé à 472 milliards de dollars, contre 464 milliards un an plus tôt, tandis que le ratio combiné s’est amélioré à 96,4% contre 97,6%.
Malgré des pertes importantes au premier trimestre liées aux incendies de Palisades et Eaton, les résultats du deuxième trimestre se sont stabilisés. Le surplus des assurés est resté solide à 1,08 billion de dollars, bien que les gains en capital réalisés aient fortement chuté à 6,8 milliards de dollars contre 58,1 milliards l’an précédent. Le secteur fait face à des défis persistants liés aux événements climatiques extrêmes, à l’inflation et à des pressions spécifiques par ligne qui pèsent sur la rentabilité à long terme.
Verisk (Nasdaq: VRSK) und APCIA berichteten, dass die US-Versicherungsbranche in der ersten Hälfte 2025 $11,5 Milliarden an Underwriting-Gewinnen erzielte, nach $3,8 Milliarden im gleichen Zeitraum 2024. Die eingeschriebenen Prämien stiegen auf $472 Milliarden gegenüber $464 Milliarden im Vorjahreszeitraum, während sich die Combined Ratio auf 96,4% von 97,6% verbesserte.
Trotz erheblicher Verluste im ersten Quartal durch die Waldbrände in Palisades und Eaton stabilisierte sich die Performance im zweiten Quartal. Das Versicherungsüberschuss blieb mit $1,08 Billionen stark, obwohl realisierte Kapitalgewinne stark auf $6,8 Milliarden von $58,1 Milliarden im Vorjahr zurückgingen. Die Branche steht weiterhin vor Herausforderungen durch extreme Wetterereignisse, Inflation und spartenbezogene Belastungen, die die langfristige Rentabilität beeinträchtigen.
- Underwriting gains increased significantly to $11.5 billion from $3.8 billion year-over-year
- Combined ratio improved to 96.4% from 97.6%
- Premium growth continued with written premiums reaching $472 billion
- Policyholders' surplus remained strong at $1.08 trillion
- Realized capital gains dropped dramatically to $6.8 billion from $58.1 billion
- Net written premium growth slowed to 1.9%
- Record-breaking catastrophe losses from California wildfires in Q1
- Ongoing challenges from extreme weather events and inflation threaten long-term profitability
Insights
Insurance industry shows resilience with $11.5B underwriting gains despite Q1 catastrophes; combined ratio improves to 96.4% amid ongoing challenges.
The first half of 2025 presents a mixed but generally positive picture for the U.S. property/casualty insurance industry. The $11.5 billion in underwriting gains represents a substantial 202% increase from the $3.8 billion reported in H1 2024, signaling improved underwriting discipline across the sector. The combined ratio improvement to
Premium growth has notably decelerated to just
What's particularly telling is the stability in loss trends, with incurred losses increasing only
The industry's financial foundation remains exceptionally strong with surplus at
The first quarter's elevated catastrophe losses from the California wildfires (Palisades and Eaton) continue a troubling pattern of increasing climate-related losses, even as the second quarter provided a temporary reprieve. The timing of this report is significant – with hurricane and fall wildfire seasons approaching, the positive first-half results could quickly deteriorate if severe catastrophes materialize.
Headwinds such as extreme weather, inflation and line-specific pressures continue to challenge long-term underwriting profitability
JERSEY CITY, N.J., Sept. 03, 2025 (GLOBE NEWSWIRE) -- Verisk (Nasdaq: VRSK), a leading strategic data analytics and technology partner to the global insurance industry, and The American Property Casualty Insurance Association (APCIA), the primary national trade association for home, auto and business insurers, today reported half-year underwriting gains for the insurance industry, which are estimated to be
According to key financial indicators for private U.S. property/casualty insurers, the first half of 2025 experienced losses in line with the escalated levels seen in recent years. First-quarter losses, driven largely by the Palisades and Eaton wildfires, outpaced historical averages but did not carry over at the same magnitude in the second quarter. Surplus levels remained historically high at
“Net written premiums growth slowed to 1.9 percent. The lack of any significant natural catastrophes in the second quarter helped offset the record-breaking catastrophe losses related to the California wildfires and severe convective storms impacting Texas and Georgia earlier in the year,” said Robert Gordon, senior vice president, policy, research and international at APCIA. “However, the U.S. is now entering the height of hurricane and wildfire season, so time will tell if the industry is able to maintain underwriting gains through year-end.”
- Premiums written: Insurers wrote
$472 billion in premiums during the first half of this year, compared to$464 billion during the same period in 2024. Similarly, earned premiums grew 3.9 percent to$453 billion in the first half of 2025.
- Underwriting gain: The estimated U.S. insurance industry net underwriting gain of
$11.5 billion is an improvement over the$3.8 billion net underwriting gain through mid-year 2024. - Incurred losses and loss adjustment expenses: Mid-year 2025, incurred losses and loss adjustment expenses increased by 2.1 percent, compared to the 2.4 percent increase at mid-year 2024. The combined ratio, a crucial measure of profitability for insurers, improved to 96.4 percent in the first half of 2025 versus 97.6 percent for the same period in 2024.
- Surplus: In the first half of 2025, the policyholders’ surplus increased slightly to
$1.08 trillion from$1.07 trillion at mid-year 2024. - Realized Capital Gains: Realized capital gains declined sharply to
$6.8 billion in the first half of 2025, compared to$58.1 billion during the same period in 2024. Adjusting for the capital gains realized by one insurer in 2024, overall investment gains were stable during this period.
“Insurers are navigating a new era of risk, where extreme weather events are no longer anomalies and frequency perils are now persistent stressors on underwriting performance, as discussed in Verisk’s 2025 Global Modeled Catastrophe Losses report,” said Saurabh Khemka, co-president of Underwriting Solutions at Verisk.
About the first half of the year results, Khemka added: “While some lines are showing signs of improvement, the broader industry continues to walk a fine line. Combined ratio has edged down slightly from this time last year, reflecting underwriting discipline, but escalating catastrophe losses— most notably January’s unprecedented California wildfires—underscore the volatility ahead. Predictive analytics, granular data and adaptive pricing strategies can help insurers respond to a rapidly evolving risk landscape.”
Note: The results above are based on annual statements filed with insurance regulators by private property/casualty insurers domiciled in the United States, including reinsurers, excess and surplus insurers, and domestic insurers owned by foreign parents, and excluding state funds for workers' compensation and other residual market insurers, the National Flood Insurance Program, and foreign insurers. The figures are consolidated estimates based on reports accounting for about 97 percent of all business written by U.S. property/casualty insurers. All figures are net of reinsurance unless otherwise noted and occasionally may not balance due to rounding.
Verisk’s Underwriting & Rating Solutions helps global insurers, reinsurers and other stakeholders modernize their processes, reduce operating costs and underwrite risks quickly and precisely. These solutions support (re)insurers across multiple lines of business, including personal & commercial property, personal & commercial auto, small commercial and general liability programming to streamline forms, rules, loss costs and rating-related information.
About Verisk
Verisk (Nasdaq: VRSK) is a leading strategic data analytics and technology partner to the global insurance industry. It empowers clients to strengthen operating efficiency, improve underwriting and claims outcomes, combat fraud and make informed decisions about global risks, including climate change, extreme events, sustainability and political issues. Through advanced data analytics, software, scientific research and deep industry knowledge, Verisk helps build global resilience for individuals, communities and businesses. With teams across more than 20 countries, Verisk consistently earns certification by Great Place to Work and fosters an inclusive culture where all team members feel they belong. For more, visit Verisk.com and the Verisk Newsroom.
About APCIA
The American Property Casualty Insurance Association (APCIA) is the primary national trade association for home, auto, and business insurers. APCIA promotes and protects the viability of private competition for the benefit of consumers and insurers, with a legacy dating back 150 years. APCIA members represent all sizes, structures, and regions-protecting families, communities, and businesses in the U.S. and across the globe.
Morgan Hurley Verisk 551-655-7858 morgan.hurley@verisk.com
FAQ
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