US Property/Casualty Insurers Post a $15.8-$16.3 Billion Underwriting Gain in Q1 2026 as Combined Ratio Falls to About 92% and Premium Growth Slows

US property and casualty insurers started 2026 with their best underwriting result in years, but premium growth has slowed sharply. Verisk and the American Property Casualty Insurance Association (APCIA) reported on June 23, 2026, that the industry posted an underwriting gain of about $15.8 billion in the first quarter, compared with a loss of $864 million a year earlier. AM Best reports a gain of $16.3 billion. The two figures differ because the organisations use different data sets and methods, and this article gives each with its source. Claims that the result is the best in a decade could not be verified in the sources reviewed, so this article does not make them. The comparison below is with the first quarter of 2025, which was weighed down by the January 2025 California wildfires.

What do the Verisk and APCIA figures show? The combined ratio, which measures claims and expenses relative to premiums, was 92.4%, down from 99.2% a year earlier. A ratio below 100% means an underwriting profit. Net written premiums rose 2.9%, down from 6.8% in the first quarter of 2025, and net earned premiums rose 3.8%, down from 7.8%. The report says premium growth slowed sharply. Robert Gordon of APCIA is quoted as saying that net written premium growth slowed sharply to 2.9% in the first quarter of 2026. Incurred losses and loss adjustment expenses fell 9.6%, after rising 15.5% in the first quarter of 2025. Carriers returned $6.2 billion to policyholders in the form of dividends. Net income after taxes was $40.9 billion, up from $19.4 billion, and realised capital gains were $8.8 billion, up from $3.7 billion. Policyholders' surplus, the industry's capital cushion, was $1.24 trillion, up from $1.09 trillion. The figures are net of reinsurance, cover about 98% of US P&C business, and exclude state workers' compensation funds, residual markets, the National Flood Insurance Program and foreign insurers.

What does AM Best report? AM Best, using its own data, reports a net underwriting gain of $16.3 billion, against a $1 billion loss a year earlier. The combined ratio was 92%, a seven-point improvement. Excluding $10.9 billion of favourable reserve development, which is the release of money previously set aside for claims that turned out lower than expected, the accident-year combined ratio was 96.6%. Catastrophe losses fell to 4.2 points of the combined ratio, from an estimated 14.5 points a year earlier. Net earned premiums rose 3.9%, and incurred losses and loss adjustment expenses fell 9.3%. Policyholder dividends rose by $5 billion. Net investment income rose 10.3% and net realised capital gains rose 141.5%. Pre-tax operating income rose 97% to $39.5 billion, and net income rose 107.7% to $41.8 billion. Industry surplus grew 2.2% since year-end 2025 to $1.3 trillion.

What explains the improvement? Both sources point to the contrast with the first quarter of 2025. The Verisk report says that catastrophe activity was more stable than in the first quarter of 2025, when the Palisades and Eaton wildfires weighed on results. Verisk says personal auto drove much of the improvement, and that some carriers returned auto premiums to customers through dividends. Casualty lines remained under pressure. Neither report gives line-by-line dollar figures in the versions we reviewed. AM Best's adjusted measure is a useful reminder: without reserve releases, the underlying result was a combined ratio of 96.6%, still profitable but less impressive.

Why does slower premium growth matter? For several years, rate increases boosted premiums. Growth of 2.9% suggests that price increases are fading and, in some lines, turning into decreases. This matches other sources covered on this site: WTW's survey reports specialty rates falling back to 2020 levels, and Artex says US property buyers are enjoying their best market in years. In personal auto, the Verisk report suggests that insurers are returning premiums to policyholders.

What are the risks? One quarter is not a trend. First-quarter results can be affected by weather, reserve releases and investment gains, and the rest of the year includes the hurricane season. The fact that net income ($40.9 billion or $41.8 billion) was far above the underwriting gain shows how much came from investments and capital gains, which can fall as well as rise. Casualty insurers continue to face social inflation, a theme in the Artex and WTW reports.

What does it mean for customers? Strong profitability and capital can support lower prices and better terms through competition, but prices depend on the line, state and insurer. Customers should compare quotes at renewal and review coverage, not assume savings. It is also worth explaining why two organisations report different numbers. Verisk and APCIA use statutory data from Verisk's database for about 98% of the market, while AM Best uses its own compilation of industry statements. Differences in coverage, timing and treatment of certain items are common and do not mean that either is wrong. Readers comparing the two should look at the direction and size of the change, which is consistent: a swing from a small loss to a large gain, and a combined ratio of about 92%.

This article summarises industry reports and is not investment advice.