AM Best on the First 6 Months of 2025

AM Best took a look at the first six months of 2025 and found insurers brought in $11.2 billion in underwriting income. That compares to $2.9 billion in underwriting income in the first six months of 2024.

The combined ratio also improved to 96.4 from 97.8 in 2024’s first six months.

Net earned premiums also went up by 7.5% to offset a jump in losses and loss adjustment expenses (LAE). They rose mostly because of the wildfire losses in California in January.

There was also a drop in net realized capital gains. It was a result of Berkshire Hathaway’s National Indemnity Company having its income just about cut in half.

Here are more details from the report:

Net premiums written:

2025: $475.8 billion

2024: $448.8 billion

Percent of change: 6%

Net premiums earned:

2025: $454.7 billion

2024: $422.9 billion

Percent of change: 7.5%

Losses & LAE

2025: $323.5 billion

2024: $307.3 billion

Percent of change: 5.3%

Underwriting expenses:

2025: $118.6 billion

2024: $111.2 billion

Percent of change: 6.7%

Underwriting income:

2025: $11.2 billion

2024: $2.9 billion

Percent of change: 284%

Net income:

2025: $50.3 billion

2024: $94.0 billion

Percent of change: -46.4%

Source link: Insurance Journal — https://bit.ly/42rWDI8