Investing.com -- The U.S. property/casualty (P/C) industry posted a net underwriting gain of $22.9 billion in 2024, marking its first underwriting profit since 2020. This represents a significant shift from the $21.3 billion loss recorded in 2023, according to a new report by AM Best.
The report, titled "First Look: 2024 US Property/Casualty Financial Results," is based on data from companies’ annual statutory statements received by March 11, 2025. The data accounts for an estimated 97% of the total P/C industry’s net premiums written.
The P/C industry’s combined ratio improved notably by 5.0 percentage points to 96.6 in 2024. Catastrophe losses, which remained consistent with 2023, accounted for an estimated 8.7 points on the 2024 combined ratio. A 9.8% growth in net earned premiums compensated for a 2.1% rise in incurred losses and loss adjustment expenses and a 9.8% increase in other underwriting expenses. The positive shift in the personal lines segment was mainly responsible for the improvement in underwriting results.
The underwriting gain, along with a 21.3% increase in earned net investment income, led to a 123.5% rise in pre-tax operating income, reaching $109.3 billion. A combined $22.8 billion change in net realized capital gains at four Berkshire Hathaway (NYSE:BRKa) Insurance Group companies contributed to the industry’s net income, which soared 89.8% from the previous year, totaling $169.3 billion.
The industry surplus grew from the end of 2023 to $1.1 trillion. This was due to a combined $174.1 billion of net income and contributed capital, which was partially offset by a $12.9 billion change in unrealized losses, $3.7 billion of other surplus losses, and $85.9 billion of stockholder dividends.
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