Verisk Analytics Reports Significant Improvement in U.S. Insurance Industry Performance
On February 6, 2026, Verisk Analytics Inc., a prominent strategic data analytics and technology partner for the global insurance industry, in collaboration with the American Property Casualty Insurance Association (APCIA), unveiled an encouraging report detailing the performance of the U.S. insurance sector through the first three quarters of 2025. The analysis highlights a remarkable shift in the industry's dynamics, characterized by reduced catastrophe losses and sustained premium growth, leading to a substantial underwriting gain of $35.3 billion.
1. Key Highlights of the Report
Underwriting Results Through Third Quarter 2025
The report presents several noteworthy statistics that underscore the improved health of the insurance industry:
- Written Premiums: Net written premiums increased by 5.1% to $740.7 billion, up from $704.8 billion in the same period in 2024. This growth indicates a positive trend towards adequate pricing and stable demand across various commercial and personal lines.
- Earned Premiums: Net earned premiums rose by 6.9% to $711.2 billion, compared to $665.5 billion in the previous year.
- Underwriting Gain: The U.S. insurance sector achieved an estimated net underwriting gain of $35.3 billion, a significant improvement compared to the $4 billion gain recorded during the first nine months of 2024.
- Incurred Losses and Loss Adjustment Expenses: There was a modest increase of just 0.6% in incurred losses and loss adjustment expenses, a notable decline from the 2.7% rise seen in 2024. This shift contributed to an impressive combined ratio improvement to 94%, down from 97.9% a year earlier. This marks the first instance in a decade where the combined ratio has dipped below 95% through the third quarter, signaling stronger underwriting performance.
- Policyholders’ Surplus: Surplus for policyholders saw an increase to $1.20 trillion, up from $1.12 trillion during the same period in 2024.
- Realized Capital Gains: Realized capital gains experienced a decline to $15.6 billion, significantly lower than the $75.5 billion recorded during the same timeframe in 2024. However, adjusting for gains realized by a particular insurer the previous year, overall investment gains remained stable.
2. Mid-Year Adjustments for 2025
Verisk's report also includes mid-year adjustments, providing a clearer picture of the industry's performance. The underwriting gains for the first half of 2025 were revised to $11.6 billion, a considerable increase from the $3.8 billion gain reported in the previous year. The insurers wrote $489 billion in premiums in the first half, reflecting a more modest growth rate of 5.4%. Additionally, earned premiums grew by 7.4% to reach $469 billion, while incurred losses and loss adjustment expenses increased by 5.4%, compared to a 2.4% increase at mid-year 2024. Policyholders' surplus also rose to $1.13 trillion from $1.07 trillion reported mid-year 2024.
3. Verisk’s Role in Driving Industry Progress
Verisk's Underwriting & Rating Solutions are pivotal in helping global insurers, reinsurers, and other stakeholders modernize their operations, reduce costs, and enhance precision in underwriting risks. These solutions cover various lines of business, including personal and commercial property, personal and commercial auto, small commercial, and general liability programming. By streamlining forms, rules, loss costs, and rating-related information, Verisk supports improved performance across the insurance landscape.
4. Conclusion
The February 2026 report from Verisk Analytics and APCIA paints a promising picture of the U.S. insurance industry, showcasing significant underwriting gains and a commitment to improved pricing and risk management. As the sector continues to navigate challenges arising from climate change and economic fluctuations, these advancements indicate a robust trajectory for future growth and stability. With a focus on leveraging data analytics and technology, Verisk remains at the forefront of driving innovation and resilience within the insurance domain.
