Best’s Special Report: Personal Lines Results Propel Turnaround in US Property/Casualty Industry’s 2024 Underwriting Performance

Underwriting results in the U.S. property/casualty (P/C) industry were led by a $31 billion turnaround in the personal auto line of business, with the entire P/C industry ending the year with a net underwriting gain of $22 billion, compared with a $23 billion loss in 2023, according to a new AM Best report.

The 2024 financial results on each individual line of P/C business, along with corresponding analysis, are detailed in a new Best’s Special Report, titled, “2024 P/C Snapshot: Personal Lines Results Propel Turnaround in Underwriting Performance; Premiums Exceed $1 Trillion,” and the data is derived from the aggregation of companies’ statutory statements that was completed as of May 15, 2025.

The personal auto market segment had produced net underwriting losses for three consecutive years before the positive result in 2024. In addition, even though the homeowners/farmowners line of business saw a $2.1 billion underwriting loss for 2024, the result represented nearly a $14.0 billion turnaround from a $16.0 billion loss in 2023. The overall P/C industry also eclipsed the $1 trillion mark in direct premiums written (DPW) for the first time ever in 2024.

“Persistent efforts to improve rate adequacy, combined with the benefits of the continued leveraging of technology and data analytics to supplement underwriting, claims handling and ratemaking finally bore fruit in 2024,” said David Blades, associate director, Industry Research & Analytics, AM Best. “However, considering the losses from the devastating California wildfires, it's highly questionable whether at least the homeowners’ underwriting performance from 2024 can be sustained in 2025.”

According to the report, commercial lines insurers were again profitable in 2024 as some lines continued to benefit from up-pricing and more effective risk selection. In particular, the commercial property line of business saw an $8.1 billion net underwriting gain compared with a $1.9 billion loss in 2023. Workers’ compensation and other liability (claims made) generated an underwriting profit, though each line experienced a tighter profit margin.

“The one commercial line that swung most decidedly in a negative direction was other liability occurrence, which AM Best believes includes the preponderance of umbrella and excess liability coverage,” said Christopher Graham, senior industry research analyst, Industry Research and Analytics, AM Best. “Insurers of these coverages have pushed to achieve pricing levels more indicative of recent loss trends, with larger commercial auto losses having a negative impact on umbrella and excess lines’ profitability.”

To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=354991.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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