{"id":881616,"date":"2025-09-03T13:58:36","date_gmt":"2025-09-03T17:58:36","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/new-insurance-industry-report-first-quarter-losses-outpace-historical-averages-but-stabilize-in-second-quarter-combined-ratio-improves\/"},"modified":"2025-09-03T13:58:36","modified_gmt":"2025-09-03T17:58:36","slug":"new-insurance-industry-report-first-quarter-losses-outpace-historical-averages-but-stabilize-in-second-quarter-combined-ratio-improves","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/new-insurance-industry-report-first-quarter-losses-outpace-historical-averages-but-stabilize-in-second-quarter-combined-ratio-improves\/","title":{"rendered":"New Insurance Industry Report: First Quarter Losses Outpace Historical Averages but Stabilize in Second Quarter, Combined Ratio Improves"},"content":{"rendered":"

\nHeadwinds such as extreme weather, inflation and line-specific pressures continue to challenge long-term underwriting profitability
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JERSEY CITY, N.J., Sept. 03, 2025 (GLOBE NEWSWIRE) — Verisk<\/a>\u00a0(Nasdaq: VRSK), a leading strategic data analytics and technology partner to the global insurance industry, and\u00a0The American Property Casualty Insurance Association<\/a> (APCIA), the primary national trade association for home, auto and business insurers, today reported half-year underwriting gains for the insurance industry, which are estimated to be $11.5 billion. Despite persistent headwinds, the industry maintained underwriting profitability through midyear 2025, driven by more adequate premium rates and investment gains. <\/p>\n

According to key financial indicators for private U.S. property\/casualty insurers, the first half of 2025 experienced losses in line with the escalated levels seen in recent years. First-quarter losses, driven largely by the Palisades and Eaton wildfires, outpaced historical averages but did not carry over at the same magnitude in the second quarter. Surplus levels remained historically high at $1.08 trillion, reinforcing the industry\u2019s strong financial positioning and ability to meet policyholder obligations; however, inflation, climate volatility and line-specific pressures continue to challenge long-term overall profitability.<\/p>\n

\u201cNet written premiums growth slowed to 1.9 percent. The lack of any significant natural catastrophes in the second quarter helped offset the record-breaking catastrophe losses related to the California wildfires and severe convective storms impacting Texas and Georgia earlier in the year,\u201d said Robert Gordon, senior vice president, policy, research and international at APCIA. \u201cHowever, the U.S. is now entering the height of hurricane and wildfire season, so time will tell if the industry is able to maintain underwriting gains through year-end.\u201d<\/p>\n