Quiet hurricane year helped U.S. insurers post a $63 billion gain

U.S. property/casualty insurers achieved an estimated $63 billion net underwriting gain in 2025, a significant improvement from previous years, largely due to unusually low catastrophe losses, particularly a near 90% decline in hurricane-related claims. Despite this gain, net income after taxes declined by $21 billion to $148 billion, primarily due to reduced realized capital gains, and persistent challenges like commercial liability and legal system abuse continue to temper the industry’s overall performance. Verisk and APCIA emphasize that this strong performance was a “reset” rather than a “new normal,” with continuous inflation, demographic shifts, and natural disaster severity posing ongoing pressures for 2026 and beyond.