US P/C Industry Records $16 Billion Underwriting Income in Q1

The U.S. property/casualty industry reversed a $1 billion underwriting loss in the first quarter 2025 to post a $16.3 billion gain for the same period this year.

According to a report from industry rating firm AM Best, net income doubled to $41.8 billion compared with $20.1 billion for Q1 2025.

The industry’s combined ratio improved to 92 versus 99 a year ago for Q1.

Excluding about $10.9 billion of favorable reserve development during the quarter, the combined ratio was 96.6 for Q1 2026.

P/C industry catastrophe losses were down significantly to about $10 billion for the first three months of 2026 compared with $33.3 billion a year ago, mostly driven by losses from the California wildfires.

Net premiums written increased 2.9% to nearly $251 billion.

Compared with the end of 2025, industry surplus has increased 2.2% to $1.3 trillion, reported AM Best.