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 increas
e 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 inclu
des 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 s
tomach in their portfolios,” says JPMorgan Chase & Co. credit strategist Tarek Hamid. “Your bond portfolio, which historically traded much more correlated with r
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ates 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.