The trend: The P&C insurance industry achieved a combined ratio of 96.6 in 2024—its best result since 2013, per Insurance Business. This means insurers paid out less in claims and expenses relative to the premiums collected.
How we got here: Despite increasingly expensive disasters across multiple U.S. regions, the P&C insurance industry improved its profitability. This turnaround occurred even as companies made strategic additions of over $9 billion to reserves for older claims—the largest boost in at least 15 years—reflecting a proactive approach to future liabilities.
The improved performance can be attributed to several key factors: