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<\/p>\nThe U.S. property\/casualty industry took another underwriting loss in 2024, but results improved thanks to rate increases and changes in risk selection.<\/p>\n
A report from industry rating agency AM Best<\/a> this week said U.S. P\/C insurers posted an underwriting loss of $2.6 billion in 2024 \u2013 a large improvement over the underwriting loss of $24.6 billion recorded in 2023. The estimated combined ratio for 2024 was 98.9 compared to 101.9 for 2023.<\/p>\n AM Best said it expects the industry in 2025 to \u201cbuild on its solid rebound\u201d with improved underwriting and operating results \u2013 even in the face of more losses from secondary perils and continued adverse litigation trends such as social inflation and third-party litigation funding.<\/p>\n The personal lines segment will be a driver of expected improvement, AM Best said. In 2024, personal lines posted a net underwriting loss of $11.9 billion compared to a loss of $36.7 billion in 2023. Rate increases in auto and home insurance, the combined ratio for auto was 98.7 (from 104.9 in 2023) and homeowners was 105.7 (from 110.9 in 2023).<\/p>\n AM Best said personal lines premium increased 12.9% in 2024, and is projecting to increase 9% this year. \u201cInsurers are focusing on achieving the rate increases necessary to address their calculated rate needs, particularly for the lines of coverage such as private passenger auto and homeowners multiperil,\u201d the agency said, adding that insurers are \u201cprepared to withdraw from a given state entirely if needed increases are not approved.\u201d<\/p>\n The homeowners segment is still expected to record a slight underwriting loss in 2025, according to AM Best, but the achievements in 2024 in personal auto \u2013 after three years of underwriting losses \u2013 should continue as the line has made strides to achieve rate adequacy while effectively using technology and data analysis.<\/p>\n \u201cBecause this line accounts for a third of all the P\/C industry\u2019s annual direct premium and more than a half of personal lines premium, its results \u2013 whether positive or negative \u2013 have a material impact on the P\/C industry\u2019s overall results,\u201d AM Best said, predicting a further reduction in combined ratio in 2025 for private passenger auto to 97.5 from 98.7 in 2024.<\/p>\n Though commercial lines outperformed personal lines with a 2024 combined ratio of 97, it was no thanks to commercial auto, which turned in a combined ratio of 108.5. AM Best said it has a negative outlook for commercial auto, general liability, and D&O.<\/p>\n \u201cAM Best estimates that commercial lines net premiums were up 6.1% in 2024, from 8.1% in 2023, reflecting continued price declines in workers\u2019 compensation as well as certain specialty casualty lines,\u201d the agency reported. For 2025, AM Best said it expects growth to weaken to about 4% but the combined ratio should remain steady at 97.<\/p>\n Topics<\/span> USA<\/a> Profit Loss<\/a> Underwriting<\/a> AM Best<\/a> Market<\/a> Property Casualty<\/a> <\/p>\n<\/p><\/div>\n Was this article valuable?<\/p>\n<\/p><\/div>\n![](\"https:\/\/www.insurancejournal.com\/app\/uploads\/2025\/02\/AM-Best-2024-US-P-C-Financial-Indicators.png\")
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