According to recent analysis from global credit rating agency AM Best, the US property and casualty (P&C) industry recorded a $22.9 billion net underwriting gain in 2024, the first underwriting profit since 2020.
This marks a significant improvement from the $21.3 billion underwriting loss reported by the sector in the previous year.
The findings are based on companies’ annual statutory statements submitted by 11 March 2025, covering approximately 97% of the total net premiums written within the P&C industry.
AM Best’s report highlights that the P&C industry’s combined ratio improved by 5.0 percentage points, reaching 96.6% in 2024.
Catastrophe losses accounted for an estimated 8.7 points of the combined ratio, which remained consistent with 2023.
Growth in net earned premiums, up 9.8%, helped offset a 2.1% increase in incurred losses and loss adjustment expenses, and a 9.8% rise in other underwriting expenses. The recovery in the personal lines segment played a key role in this improvement, notes AM Best.
The underwriting gain, combined with a 21.3% increase in earned net investment income, contributed to a 123.5% rise in pre-tax operating income, which reached $109.3 billion for the year.
A $22.8 billion change in net realised capital gains at four Berkshire Hathaway Insurance Group companies also played a part in boosting the industry’s net income, which surged by 89.8%, reaching $169.3 billion.
AM Best further reports that the industry surplus increased to $1.1 trillion by the end of 2024, driven by a combined $174.1 billion in net income and contributed capital, despite being partially offset by $12.9 billion in unrealised losses, $3.7 billion in other surplus losses, and $85.9 billion in stockholder dividends.
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