The US property and casualty (P&C) insurance sector experienced a significant recovery in 2024, according to AM Best, the credit rating agency.
In its latest report, AM Best highlights a $31 billion improvement in the personal auto line of business, which helped push the industry to a $22 billion net underwriting gain—reversing a $23 billion loss from 2023.
These findings are presented in AM Best’s newly released Best’s Special Report, titled “2024 P&C Snapshot: Personal Lines Results Propel Turnaround in Underwriting Performance; Premiums Exceed $1 Trillion.” The analysis is based on aggregated statutory filings from insurers, compiled as of May 15, 2025.
After three years of consecutive underwriting losses, the personal auto market returned to profitability in 2024, significantly influencing the broader industry’s results. While the homeowners and farmowners segment still posted a $2.1 billion underwriting loss, AM Best notes that this marks a substantial improvement from the $16.0 billion loss reported in 2023.
For the first time in industry history, direct premiums written (DPW) exceeded $1 trillion—another milestone AM Best underscores in the report as a reflection of ongoing expansion across both personal and commercial lines.
On the commercial side, AM Best reports that insurers maintained underwriting profitability in 2024. Commercial property insurance, in particular, shifted from a $1.9 billion loss in 2023 to an $8.1 billion gain in 2024, thanks to continued premium increases and more refined risk selection strategies.
Workers’ compensation and other liability (claims-made) lines also posted profits, although AM Best indicates that margins in those areas narrowed compared to previous years.
Overall, AM Best’s comprehensive analysis points to a marked recovery in the P&C industry, led by better underwriting outcomes and premium growth, especially in personal lines.
“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,” commented 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.”
“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,” added 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.”
