According to the Best’s Rankings, U.S. property/casualty net premiums written saw a significant increase of 7.7% to reach $245.97 billion in the first quarter of 2025. However, the combined ratio after dividends worsened by 4.7 points to 98.9 during the same period. This indicates that while premium income grew, the industry’s profitability was slightly impacted, possibly due to higher claims or operating expenses.
In the commercial multiperil insurance segment, direct premiums written rose by 7.6% to $67.13 billion in 2024. The top three insurers maintained their leading positions, with Travelers Group topping the rankings with an increase in direct premiums written. This growth reflects a positive trend in the commercial insurance market, driven by increased business activities and risk awareness among companies.
On the other hand, the U.S. life/health insurance industry experienced a slight decline in admitted assets, dropping by 0.2% to $9.21 trillion in the first three months of 2025. Despite the decrease, Prudential of America Group remained a key player in the market. The dip in admitted assets could be attributed to various factors such as market volatility, changes in investment strategies, or regulatory challenges impacting the industry.
Experts suggest that the insurance sector’s performance in the first quarter of 2025 reflects a mix of opportunities and challenges. While premium growth indicates a robust demand for insurance products, the profitability metrics highlight the need for insurers to carefully manage their underwriting and claims processes to maintain sustainable growth.
The release of Best’s Rankings provides valuable insights for investors, industry stakeholders, and policymakers to understand the dynamics of the U.S. insurance market. As the sector continues to navigate through evolving risks and opportunities, monitoring key performance indicators will be crucial for making informed decisions and driving sustainable growth in the insurance industry.
Overall, the reports underscore the resilience of the U.S. insurance sector amidst changing economic conditions and regulatory landscapes, highlighting the importance of agility and strategic planning for insurers to thrive in a dynamic market environment.
References:
1. Best’s Rankings: US Property/Casualty Three-Month 2025 NPW Rise 7.7% – AM Best
2. Best’s Rankings: US Commercial Multiperil 2024 DPW Rose 7.6% – AM Best
3. Best’s Rankings: US Life/Health Three-Month Admitted Assets Drop Slightly – AM Best
