- US P&C insurers generated $31.7 bn in net underwriting gains in the first half of 2026, compared with $11.6 bn a year earlier, according to Verisk and APCIA.
- The industry’s combined ratio improved to 92.7%, while net income increased 53% to $77.8 bn and policyholders’ surplus reached $1.3 trillion.
- Net written premium growth slowed to 2.1% as property insurance pricing softened, although casualty claims and catastrophe exposure continued to pressure underwriting results.
The US property and casualty insurance industry recorded an estimated $31.7 bn net underwriting gain in the first half of 2026, up from $11.6 bn in the corresponding period of 2025, according to Verisk and the American Property Casualty Insurance Association (APCIA).
The improvement largely reflected lower insured catastrophe losses compared with the previous year, when the Los Angeles wildfires significantly affected industry results. Higher investment income also supported profitability, although performance varied across insurance lines and individual states.
The industry’s combined ratio improved to 92.7%, from 96.5% a year earlier, marking one of its strongest half-year underwriting performances in recent history.
Net incurred losses and loss adjustment expenses declined 4.8%, compared with a 5.1% increase during the first six months of 2025. Net income after taxes rose 53% to $77.8 bn, from $50.9 bn, while net investment gains increased to $59.6 bn from $49.0 bn.
Policyholders’ surplus reached $1.3 tn, compared with $1.13 tn at midyear 2025, strengthening the industry’s financial capacity to absorb future catastrophe losses.
Premium growth, however, continued to moderate. Net written premiums increased 2.1%, down from 5.2% in the first half of 2025, while net earned premium growth slowed to 3.3% from 7.3%.
Property insurance market conditions softened as rate increases moderated and competition intensified. Casualty lines remained under pressure, despite indications that the hard market was beginning to ease.
“First-half results should not be mistaken as evidence that underlying risk has diminished,” said Saurabh Khemka, president of Verisk Underwriting Solutions.
Broader industry performance highlights the growing value of precision as property market conditions continue to soften. Increased market segmentation means insurers may benefit from a deeper understanding of exposures, claims behavior and portfolio performance to help support profitable growth as pricing becomes more competitive.
Saurabh Khemka, president of Verisk Underwriting Solutions
Verisk estimates that global insured natural catastrophe losses will average approximately $171 bn annually, with the US accounting for around $117 bn, or roughly two-thirds of the total, according to its 2026 Global Modeled Catastrophe Losses Report.
Khemka noted that frequent events, including severe convective storms and wildfires, can generate substantial insured losses and considerable differences in underwriting performance.
The exposure reinforces the need for insurers to assess risks at a more detailed level, particularly as pricing competition increases.
APCIA senior vice president Robert Gordon said slowing premium increases were providing some relief to policyholders.
Net written premium growth has declined from a recent peak of 10.8% in the first half of 2024 to 5.2% in 2025 and 2.1% in 2026.
Gordon attributed much of the improvement in overall profitability to reduced catastrophe losses compared with the first half of 2025, emphasizing that underwriting conditions continued to differ substantially between states.
He also said legal system abuse reforms in Florida, Georgia and Louisiana had contributed to reductions in auto and homeowners’ insurance rates for many policyholders, with the changes expected to deliver hundreds of millions of dollars in premium relief.
Despite stronger industry-wide results, rising construction costs and claims severity continued to affect insurance affordability and property rebuilding expenses.
Casualty insurance presented additional challenges. Bodily injury and commercial liability losses worsened during the first half, with excess liability, umbrella liability and commercial auto insurers facing increasing claims costs.
“While insured natural-catastrophe losses provided a temporary reprieve in the first half of 2026, bodily injury and commercial liability losses continued to worsen,” Gordon said.
The first-half results therefore showed substantially improved underwriting profitability and capital strength, alongside persistent differences in loss experience between property and casualty business lines. Catastrophe exposure and rising liability claims remain material considerations for insurers as premium growth slows.
