Reduced Cat Losses Drive Huge Underwriting Gains

The insurance industry posted an estimated net underwriting gain of $35.3 billion, up sharply from the $4 billion gain through the first nine months of 2024, according to a report from Verisk and the American Property Casualty Insurance Association. 

Premium growth and fewer Cat losses helped drive results through the third quarter of 2025.

Net written premiums grew 5.1% to $740.7 billion, compared to $704.8 billion during the same period in 2024. The increase reflected a shift toward adequate pricing and stable demand across the majority of commercial and personal lines, according to the report.

The combined ratio improved from 97.9% to 94%. It marked the first time in a decade that the combined ratio fell below 95% through the third quarter, signaling stronger underwriting performance.