Net underwriting losses drop in 2024: A.M. Best

The U.S. property/casualty insurance industry’s estimated net underwriting loss narrowed to $2.6 billion in 2024 from a $24.6 billion loss in 2023, A.M. Best & Co. Inc. said in a report Thursday.

Best expects further improvement in underwriting and operating results for 2025.

Commercial lines results benefited from positive rate momentum in most lines, and personal lines results showed notable improvement in 2024, Best said.

Results continued to be impacted by the frequency of severe convective storms and an active 2024 Atlantic hurricane season, Best said.

Net income is estimated to increase 61% to $143.5 billion in 2024, while the industry’s net investment income is estimated to grow by around 18% to $85.4 billion. Interest rate hikes boosted net investment income through higher yields on bonds, Best said.

The industry’s combined ratio is estimated at 98.9 in 2024, an improvement from 101.9 in 2023.

Best estimates that catastrophe losses will contribute 7.7 points to the 2024 combined ratio. For 2025, the rating agency is revising its loss estimate by 8.5 points due to the January California wildfires.

Net premiums written grew an estimated 10% to $946.2 billion in 2024, and Best projects a 7.3% increase in net premiums written in 2025.

The lower projection for 2025 reflects the benefit of the premium increases in 2024, Best said.