Strong 2025 Underwriting Income Masks Persistent Property/Casualty Insurance Pressures

Rhea-AI Summary

Verisk (Nasdaq: VRSK) and APCIA reported that U.S. property/casualty insurers posted an estimated $63 billion net underwriting gain for 2025, driven largely by unusually low catastrophe losses.

Key metrics: net written premiums $971 billion (+4.8%), combined ratio 92.9%, policyholders’ surplus $1.2 trillion, and net income $148 billion.

Positive

• Underwriting gain $63B for 2025
• Combined ratio 92.9%, improved from 96.6%
• Net written premiums $971B, up 4.8%

Negative

• Net income down $21B (12.6%) to $148B
• Realized capital gains fell to $23B from $79B
• Commercial liability and legal system abuse remain material headwinds

Key Figures

2025 net underwriting gain: $63 billion 2024 underwriting gain: $23 billion 2023 underwriting loss: $22 billion +5 more

8 metrics

2025 net underwriting gain $63 billion Estimated net underwriting gain for U.S. private P&C insurers in 2025

2024 underwriting gain $23 billion Net underwriting gain for U.S. private P&C insurers in 2024

2023 underwriting loss $22 billion Net underwriting loss for U.S. private P&C insurers in 2023

Net written premiums 2025 $971 billion Net written premiums grew 4.8% from $927 billion in 2024

Net earned premiums 2025 $953 billion Net earned premiums rose 6.3% from $896 billion in 2024

Combined ratio 2025 92.9 percent Improved from 96.6 percent in 2024, near-record low level

Policyholders’ surplus 2025 $1.2 trillion Increased from $1.1 trillion in 2024

Net income 2025 $148 billion Declined from $169 billion in 2024 (down $21 billion, 12.6%)

Market Reality Check

Price: $194.73 Vol: Volume 1,433,549 is below...

normal vol

$194.73 Last Close

Volume Volume 1,433,549 is below the 20‑day average of 1,963,131, suggesting muted participation. normal

Technical Price $194.73 is trading below the 200‑day MA of $242.09, and 39.7% below the 52‑week high.

Peers on Argus

VRSK fell 2.56% while key peers were mixed: EFX -4.18%, HURN -2.20%, CPRT -0.76%...

VRSK fell 2.56% while key peers were mixed: EFX -4.18%, HURN -2.20%, CPRT -0.76%, BAH -0.75%, FCN +0.22%. Scanner data shows no broad sector momentum.

Historical Context

5 past events · Latest: Mar 23 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Mar 23	Industry conference	Neutral	-0.9%	Verisk hosts insurance conference focused on risk, data and responsible AI.
Mar 17	Research release	Neutral	-0.5%	Verisk publishes study on rising AI‑driven insurance fraud trends.
Mar 05	Investor Day targets	Positive	-2.0%	Company reiterates multi‑year growth, margin and capital return targets.
Feb 23	Debt offering	Neutral	+5.3%	Pricing of $1.0B senior notes to refinance borrowings and support corporate uses.
Feb 23	Share repurchase	Positive	-0.5%	Company enters $1.5B accelerated share repurchase agreements with two banks.

Pattern Detected

Recent news often saw muted or negative price reactions, even to seemingly positive strategic updates and capital return actions, with one strong upside move on a debt offering.

Recent Company History

Over the past month, VRSK highlighted strategic positioning and capital structure moves. An Investor Day on Mar 5 reiterated medium‑term growth and margin targets, yet shares fell. A $1.5 billion accelerated share repurchase and related debt financing around Feb 23 drew mixed reactions, including a 5.27% gain following senior note pricing. Subsequent AI‑focused conference and fraud research headlines in March prompted only small negative moves. Against this backdrop, today’s industry‑level underwriting update fits into a pattern of the stock not consistently rallying on ostensibly constructive news.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2026-03-24

An effective S-3ASR shelf registration dated 2026-03-24 allows Verisk or selling stockholders to offer common stock, preferred stock, debt, rights, warrants and units from time to time through various distribution methods, with specific terms to be set in future prospectus supplements.

Market Pulse Summary

This announcement underscores that 2025 produced one of the strongest underwriting outcomes in years...

Analysis

This announcement underscores that 2025 produced one of the strongest underwriting outcomes in years for U.S. P&C insurers, with an estimated $63 billion net underwriting gain and a 92.9% combined ratio, driven largely by unusually low catastrophe losses. At the same time, net income declined to $148 billion, premium growth slowed, and legal system abuse, inflation and severe convective storms remained key threats. For Verisk, which supplies data and analytics to this sector, investors may watch catastrophe activity, loss trends and regulatory shifts affecting insurer demand for its services.

Key Terms

net underwriting gain, combined ratio, loss adjustment expenses, policyholders’ surplus, +4 more

8 terms

net underwriting gain financial

"the industry posted an estimated net underwriting gain of approximately $63 billion"

Net underwriting gain is the profit an insurance underwriter keeps from its core insurance activities after collecting premiums and paying claims, reinsurance costs, and the expenses tied directly to writing policies, but before investment income. It matters to investors because it shows whether the business is pricing and managing risk profitably on its insurance operations—like a shopkeeper seeing if product sales cover the costs of goods and store expenses before counting interest earned on savings.

combined ratio financial

"supported by a near-record low combined ratio, but that outcome was driven"

The combined ratio is a way insurance companies measure how well they are doing by adding up all their costs and claims and comparing them to the money they earn from premiums. If the ratio is below 100%, it means the company is making a profit; if it's above 100%, they are losing money. It helps see if an insurance company is financially healthy or not.

loss adjustment expenses financial

"Incurred losses and loss adjustment expenses decreased 0.4 percent"

Costs an insurance company incurs to investigate, process, defend and settle claims — for example, fees for claims adjusters, legal defense, and settlement negotiations. These expenses act like the labor and admin needed to handle a warranty repair: they don’t pay the claim itself but add to the total cost of claims, so rising loss adjustment expenses reduce insurers’ profits and signal how efficiently future claims are likely to be handled.

policyholders’ surplus financial

"Surplus: Policyholders’ surplus increased to $1.2 trillion from $1.1 trillion"

Policyholders’ surplus is an insurance company’s financial buffer — essentially its assets minus its liabilities — that represents the money available to pay unexpected claims and absorb losses. Investors watch this number because a larger surplus means the insurer is better able to cover claim shocks, write new policies and meet regulatory tests; it’s like a rainy-day fund that shows how safely the business can operate and grow.

realized capital gains financial

"Realized capital gains continued to decline to $23 billion, compared to $79 billion"

Realized capital gains are the profits an investor actually locks in when they sell an asset for more than they paid, as opposed to gains that only exist on paper while the asset is still owned. They matter because they change an investor’s cash position and tax bill—like cashing in a collectible that raises your pocket money and may trigger a tax payment—and they directly affect reported investment returns and available funds for reinvestment or dividends.

net written premiums financial

"Written premiums: Net written premiums grew 4.8 percent to $971 billion"

Net written premiums are the total value of insurance policies an insurer issues during a period, after subtracting the portion it passes on to reinsurers. It shows how much premium income the company is keeping to cover claims and run the business, so investors use it like a revenue-base gauge: rising net written premiums suggest growth or higher risk retention, while declines may signal more reinsurance or shrinking new sales.

net earned premiums financial

"Earned premiums: Net earned premiums rose 6.3 percent to $953 billion"

Net earned premiums are the portion of insurance premium income that an insurer recognizes as revenue for the period after subtracting amounts passed to other insurers (reinsurance) and adjusting for premiums that cover future periods. For investors it shows the actual insurance revenue available to cover claims and expenses—think of it like the money a subscription business can count on this month after refunds and partner fees—so it helps assess growth and underwriting health.

post-tax financial

"Net investment results displayed are post-tax."

An amount described as post-tax is the money left after all applicable taxes have been taken out. For investors, post-tax figures show the real economic benefit — like the take-home pay after taxes — and are what actually affects cash flow, returns, dividends and the amount available for reinvestment. Comparing pre-tax and post-tax numbers helps assess the true value of an investment after tax obligations.

AI-generated analysis. Not financial advice.

Limited catastrophe impacts supported P&C underwriting profitability

JERSEY CITY, N.J., March 25, 2026 (GLOBE NEWSWIRE) -- Today, preliminary U.S. property and casualty (P&C) insurance underwriting results for full year 2025 were released by 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.  

According to key financial indicators for private U.S. P&C insurers, the industry posted an estimated net underwriting gain of approximately $63 billion. This represents a significant improvement over the $23 billion underwriting gain in 2024, and the $22 billion underwriting loss recorded in 2023. 

“The industry delivered one of its strongest underwriting results in years in 2025, supported by a near-record low combined ratio, but that outcome was driven more by unusually low catastrophe losses rather than a fundamental shift in industry risk,” said Saurabh Khemka, president of Verisk Underwriting Solutions. “A near 90 percent decline in hurricane-related claims in 2025 materially reduced catastrophe losses, an improvement that reflects limited U.S. landfall rather than a change in underlying exposure.”  

Khemka added: “Still, some lines, including personal auto, showed core improvements following strong rate action and tighter underwriting discipline, while workers’ compensation continued to deliver consistently favorable results. At the same time, overall premium growth decelerated and commercial liability continued to weigh on overall performance. Taken together, these dynamics make 2025 a reset after several years of volatility, not a new normal. Ongoing catastrophe variability, moderating rate momentum and elevated legal system costs mean underwriting discipline remains critical heading into 2026 and beyond. That reality is already playing out this year, as recent tornado and hail events serve as an early reminder of the volatility that continues to define catastrophe risk.” 

2025 Full-Year Underwriting Results

• Written premiums: Net written premiums grew 4.8 percent to $971 billion, compared to $927 billion in 2024.  
• Earned premiums: Net earned premiums rose 6.3 percent to $953 billion, compared to $896 billion in 2024.  
• Underwriting gain: The U.S. insurance industry posted an estimated net underwriting gain of $63 billion, an improvement over the $23 billion gain in 2024. 
• Incurred losses and loss adjustment expenses: Incurred losses and loss adjustment expenses decreased 0.4 percent, compared to a 2.3 percent rise in 2024.  
• Combined ratio: The combined ratio improved to 92.9 percent, down from 96.6 percent in 2024.  
• Surplus: Policyholders’ surplus increased to $1.2 trillion from $1.1 trillion in 2024.  
• Realized capital gains: Realized capital gains continued to decline to $23 billion, compared to $79 billion in 2024. Adjusting for the capital gains realized by one insurer in recent years, overall investment gains were in line with historical averages, although up from 2022 and 2023. 
• Net income: Net income after taxes declined to $148 billion from $169 billion in 2024, a $21 billion decline.  

“Industry results continued to stabilize in 2025. Incurred losses were largely flat, reflecting the unusual lack of hurricanes making landfall in the United States,” said Robert Gordon, senior vice president, policy, research and international at APCIA. “Consumers benefited from the slow-down in insurance cost-drivers, as net written premium growth slowed from 8.8 percent in 2024 to 4.8 percent. Personal and commercial insurance spending declined in 2025 relative to total consumer spending and gross industrial output, respectively. Insurers’ net income declined by 12.6 percent, partly reflecting reduced realized capital gains. Market performance varied significantly by state and line of business. For example, homeowners and auto insurance losses and rates in Florida in 2025 declined significantly following legal system abuse reform, while loss ratios nationwide for contractor’s liability remained elevated. Legal system abuse continues to challenge commercial liability lines, with significant adverse reserve additions for recent years continuing in commercial auto liability and other liability. While industry premium growth significantly slowed in 2025, particularly in personal lines, losses will continue to face long-term pressures from continuing inflation, demographic shifts, natural disaster severity and legal system abuse.”  

Continued pressures on the horizon  

Escalating material and labor costs continue to drive higher repair and replacement expenses, particularly for roofs, while underinsurance and rising claim severity complicate loss outcomes, coverage gaps and add pressure to loss costs. At the same time, frequent and intense hail and severe convective storms are expanding exposure beyond traditional geographies. As a result, recent profitability should be viewed against a backdrop of persistent and evolving risk as the industry moves through 2026 and beyond. 

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 97.8 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. Net investment results displayed are post-tax.   

### 

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, catastrophic 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. 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

What did Verisk (VRSK) report about U.S. P&C underwriting results for 2025?

Verisk reports the U.S. P&C industry posted an estimated $63 billion underwriting gain in 2025. According to Verisk, that improvement reflected a near-record low combined ratio and unusually low catastrophe losses rather than a systemic risk reduction.

How did premiums and combined ratio change for 2025 according to Verisk (VRSK)?

Net written premiums rose to $971 billion, up 4.8% year-over-year, and the combined ratio improved to 92.9%. According to Verisk, earned premiums also increased and helped underwriting profitability amid low catastrophe losses.

Why did net income for the P&C industry decline despite underwriting gains in 2025?

Net income fell to $148 billion, a $21 billion decline, partly due to much lower realized capital gains. According to Verisk, realized gains dropped to $23 billion from $79 billion, reducing overall investment income.

What risks did Verisk (VRSK) highlight for insurers heading into 2026?

Verisk warned that catastrophe variability, moderating rate momentum, and elevated legal costs pose ongoing risks for 2026. According to Verisk, recent tornado and hail events already remind the market of persistent volatility in catastrophe exposure.

How did state and line performance vary in 2025 per Verisk (VRSK) and APCIA?

Performance varied materially by state and line; for example, Florida saw lower homeowners and auto losses and rates after legal reform. According to APCIA, contractor liability and commercial auto liability remained areas of elevated loss and reserve strain.