AM Best — P&C Insurers & 2025
Published March 31, 2026 at 3:26 PM · News Releases and Bulletins
In the last couple of weeks AM Best has released reports on the business of insurance in 2025. Overall, it was a pretty good year. P&C insurers recorded an underwriting gain in 2025 of $61 billion.
It’s almost three-times as much when compared to the $22 billion in 2024.
The statistics from 2025 have even surpassed what AM Best predicted at 2024’s end. The big winner in 2025 was homeowners and private passenger auto. That’s about half of the P&C market and both improved dramatically. The final numbers aren’t in yet, but it’s looking very good but both lines contributed heavily to the $61 billion underwriting gain.
AM Best said the use of predictive analytics and telematics are more and more a part of how the industry sets prices. This is especially true in the small commercial and personal auto lines. Insurers are also investing more in data, analytics and artificial intelligence to be more precise with underwriting and to improve the selection of risk.
The ratings firm’s report also notes technology as being more important in pricing, claims and the detection of fraud.
Investment income is also up significantly. It rose 10% in 2025.
Here is more from the report.
Net premiums written 2025: $940.7 billion
Net premiums written 2024: $898.5 billion
Year over year change: 4.7%
Net premiums earned 2025: $923.3 billion
Net premiums earned 2024: $870 billion
Year over year change: 6.1%
Losses & LAE 2025: $615.7 billion
Losses & LAE 2024: $618.9 billion
Year over year change: -0.5%
Underwriting expenses 2025: $241.2 billion
Underwriting expenses 2024: $225.2 billion
Year over year change: 7.1%
Policyholder dividends 2025: 5.4%
Policyholder dividends 2026: 3.9%
Year over year change: 40.8%
Underwriting income loss 2025: $60.9 billion
Underwriting income loss 2024: $22.1 billion
Year over year change: 176.1%
Net investment income 2025: $91.4 billion
Net investment income 2024: $83.8 billion
Year over year changes: 9.1%
Pretax operating income 2025: $153.1 billion
Pretax operating income 2024: $107 billion
Year over year change: 43.2%
Net income 2025: $150.9 billion
Net income 2024: $166.7 billion
Year over year change: -9.5%
Source link: Carrier Management — https://bit.ly/4tq2au1