A new report from S&P Global Market Intelligence is filled with information about record
line-of-business loss ratios achieved in 2025—with some property/casualty lines coming in at record lows, and others reaching record high levels.
Not surprisingly, the highs occurred for commercial liability insurance lines. The lows were in personal lines, including the wildfire-impacted home
owners line, which benefited from the absence of landfalling U.S. hurricanes last year.
Ultimately, the lows outweighed the highs, according to the firm’s report on P/C insurance statutory financial results, “Spectacular P&C statutory profitability
may prove fleeting.” But the real story of last year’s record results wasn’t personal vs. commercial lin
es but rather property vs. casualty, S&P GMI researchers pointed out in the report.
“We can say with conviction that the industry will not replicate these results in 2026, or, quite possibly, at any point in the foreseeable future,” wrote S
&P GMI’s Jason Woleben, Tim Zawacki and Husain Rupawala in the report published on Mond
ay. They noted that the 2025 underwriting results overall—the strongest in 19 years—were driven by a beneficial combination of “cyclical tailwinds, reduced c
atastrophe losses, and profit improvement plans.” Lagging premium growth and rising competition dim the prospects of a near-term replay, the report suggests.
In dollars, the P/C industry’s net underwriting gain reached $67.9 billion in 2025, surpassing the inflation-adjusted profit of $54.2 billion in 2006.
See more beautiful photo albums Here >>>
The combined ratio was just under 93.0, only surpassed by a 92.4 ratio recorded 19 years earlier in 2006.
As for the line-of-business lows and highs, S&P GMI shared these research findings about 2025 net loss ratios:
The homeowners line net loss ratio was 53.7, 11.1 points better than 2024 and marking the l
owest level since 2015.
The net loss ratio for private passenger auto, coming in at 61.1 for 2025, was 4.7 points better than 2024 and the lowest net loss ratio for the line since 2020. In
particular, the personal auto physical damage net loss ratio was 52.2, the lowest in at least 30 years.
The net loss ratio for an S
&P GMI aggregation of casualty lines increased to 66.7 in 2025. Among the lines, the loss ratio for other liability coverage reached a 21-year high of 68.0, and medical professional liability also topped out a 21-year high (57.9).
