The U.S. property/casualty (P/C) industry recorded a $22.9 billion net underwriting gain in 2024, signifying the segment’s first underwriting profit since 2020, and marking a substantial swing from the $21.3 billion loss recorded in the prior year, according to a new AM Best report.

These preliminary results are detailed in a new Best’s Special Report, titled, “First Look: 2024 US Property/Casualty Financial Results,” and the data is derived from companies’ annual statutory statements received as of March 11, 2025, representing an estimated 97% of the total P/C industry’s net premiums written.

According to the report, the P/C industry’s combined ratio improved significantly by 5.0 percentage points to 96.6 in 2024. Catastrophe losses accounted for an estimated 8.7 points on the 2024 combined ratio, remaining even with 2023. Growth of 9.8% in net earned premiums offset a 2.1% increase in incurred losses and loss adjustment expenses and a 9.8% rise in other underwriting expenses. The turnaround in the personal lines segment was primarily responsible for the improvement in underwriting results.

The underwriting gain, coupled with a 21.3% increase in earned net investment income, drove pre-tax operating income up 123.5%, to $109.3 billion. A combined $22.8 billion change in net realized capital gains at four Berkshire Hathaway Insurance Group companies contributed to the industry’s net income rising 89.8% from the prior year, to $169.3 billion.

Industry surplus rose from the end of 2023 to $1.1 trillion, as a combined $174.1 billion of net income and contributed capital was reduced by a $12.9 billion change in unrealized losses, $3.7 billion of other surplus losses, and $85.9 billion of stockholder dividends.

To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=352225.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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