Best’s Special Report: US Property/Casualty Segment Posts $16 Billion Underwriting Gain in First-Quarter 2026

JUNE 10, 2026 09:44 AM (EDT)

Best's Special Report: US Property/Casualty Segment Posts $16 Billion Underwriting Gain in First-Quarter 2026

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FOR IMMEDIATE RELEASE

OLDWICK - JUNE 10, 2026 09:44 AM (EDT)
The U.S. property/casualty (P/C) industry recorded a $16.3 billion net underwriting gain in the first quarter of 2026 following a $1 billion loss in the same prior-year period, which had been driven largely by the California wildfires, according to a new AM Best report.

These preliminary results are detailed in a new Best's Special Report, titled, "First Look: Three-Month 2026 US Property/Casualty Financial Results," and the data is derived from companies' annual statutory statements received as of June 1, 2026, representing an estimated 97% of the total P/C industry's net premiums written. According to the report, catastrophe losses were down significantly and accounted for 4.2 points on the three-month 2026 combined ratio, down from an estimated 14.5 percentage points in first-quarter 2025. This led to a combined ratio of 92.0 in the first three months of 2026, a seven-percentage-point improvement over the same prior-year period.

A 10.3% increase in net investment income earned combined with the underwriting gain drove pre-tax operating income up by 97.0% to $39.5 billion. Net realized capital gains more than doubled in first-quarter 2026, which contributed to a 107.7% net income increase over the first quarter of 2025 to $41.8 billion.

To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=365603.