Verisk Analytics reported that U.S. property‑and‑casualty insurers posted a net underwriting gain of $63 billion for the full year 2025, a sharp turnaround from the $23 billion gain in 2024 and the $22 billion loss in 2023. The gain was largely attributable to a near‑90 percent drop in hurricane‑related claims, reflecting limited U.S. landfall activity that year.
Premium growth for the year slowed to 4.8 percent, essentially flat compared with the 4.8 percent growth reported for 2024. The modest pace was offset by core improvements in personal auto and workers’ compensation lines, which benefited from rate actions and tighter underwriting discipline, according to Verisk’s commentary.
Verisk’s own financial performance mirrored the broader industry trend. Underwriting revenues for the year rose 7.7 percent (7.0 percent on an operating‑cost‑controlled basis), while claims revenues increased 4.1 percent (5.7 percent on an operating‑cost‑controlled basis). These gains support the company’s subscription‑based revenue model and its focus on AI‑enabled solutions such as XactGen.
Saurabh Khemka, president of Verisk Underwriting Solutions, noted that the industry delivered one of its strongest underwriting results in years in 2025, supported by a near‑record low combined ratio. He emphasized that the outcome was driven more by unusually low catastrophe losses than by a fundamental shift in industry risk, and highlighted the near‑90 percent decline in hurricane‑related claims as a key factor.
The combined ratio improved to 92.9 percent from 96.6 percent in 2024, indicating stronger underwriting performance. However, the company and the industry continue to face headwinds such as rising legal system costs, inflationary pressures, and ongoing catastrophe variability, suggesting that 2025 may represent a reset rather than a new normal.
Verisk’s analytics platform remains a critical tool for insurers, providing data and insights that help manage risk exposure and pricing. The firm’s investment in AI and its shift toward subscription‑based revenue models position it to support insurers as they navigate a volatile market and seek operational efficiencies.
Overall, the 2025 results underscore the resilience of U.S. property‑and‑casualty insurers in a benign catastrophe year, while highlighting the importance of disciplined underwriting and data‑driven risk management in sustaining profitability.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.