Insurers through the first nine months of 2025 recorded an underwriting profit of $35.3 billion—far above a $4 billion result at the same point the year prior.
As public insurance companies announce fourth quarter and full-year earnings, Verisk and the American Property Casualty Insurance Association (APCIA) took a look at the industry’s financial results through the first nine months.
New premiums written as of Sept. 30, 2025 were $740.7 billion, up 5.1% compared with results during the same time in 2024. Verisk and APCIA said the increase reflected more adequate prices and stable demand in most personal and commercial lines of business.
However, net income for the U.S. property/casualty industry was down 23.7% to $98.7 billion as the nine-month mark in 2025 versus $129.5 billion in 2024. The industry’s combined ratio finished at 94 through nine months 2025 compared with 97.9 in 2024.
Incurred losses and loss adjustment expenses increased to $487.5 billion compared with $484.7 billion the year prior.
Policyholder surplus through nine months 2025 was up to about $1.2 trillion compared with $1.1 trillion after nine months 2024.
Verisk and APCIA said some adjustments were made to half-year results. Underwriting income was $11.6 billion, up from $3.8 billion at the halfway point 2024.
At the same time, stock portfolios are bulging with richly valued AI-related stocks. (The so-called Magnificent 7 group of the biggest tech stocks, which also includes Alphabet, Apple, Nvidia and Tesla, now accounts for about a third of the S&P 500’s value.) Diversification is getting more challenging. “Portfolio managers are going to have to decide what level of AI exposure they’re willing to stomach in their portfolios,” says JPMorgan Chase & Co. credit strategist Tarek Hamid. “Your bond portfolio, which historically traded much more correlated with rates and banks’ performance, is now going to be correlated with technology companies’ performance.”
Still, for credit investors and other lenders, AI is hard to resist—even if it comes with a sense of unease. The more conservative estimates from Morgan Stanley and Moody’s Ratings peg the capital expenditures at $3 trillion or more in the coming years, whereas JPMorgan projects more than $5 trillion of spending for the data center and AI boom, including related power supplies.
