U.S. property and casualty insurers posted $61.2 billion in underwriting income in 2025, up from $23 billion in 2024, according to AM Best. The industry’s combined ratio improved to 93, marking its strongest underwriting performance in a decade.
Personal lines drove much of the improvement. Private passenger auto and homeowners insurers benefited from prior rate increases, greater use of technology and data analytics, and more responsive ratemaking.
Commercial lines also improved overall, but results remained uneven. Commercial auto liability and other liability lines continued to face rising claim severity, legal costs and reserve pressure. Workers compensation remained a positive contributor.
Independent agents continue to play a central role in the market. The Big “I” 2026 Market Share Report found that independent agencies placed 62% of all U.S. P&C premium, including 87.7% of commercial lines premium. Their share of personal lines also increased to 39.5%.
