Personal Lines Underwriting Sees Gains, Narrowing the Gap with Commercial Lines

The U.S. property and casualty insurance industry saw improved underwriting results in the first half of 2024, particularly in personal lines, according to a report by Triple-I and Milliman. The industry’s net combined ratio improved to 99.4, with commercial lines still outperforming personal lines but the gap between them shrinking. Personal lines, driven by significant rate increases and premium growth in auto and homeowners insurance, contributed to the overall improvement, despite risks from natural catastrophes like Hurricanes Helene and Milton.

Commercial lines remained mostly stable, with a 97.1 net combined ratio. However, continued underperformance in commercial auto and general liability is expected to persist through 2026. Meanwhile, personal auto’s net combined ratio improved to 100, its best in years, and homeowners insurance is projected to reach profitability by 2026. Rising property and casualty replacement costs could challenge insurers, as they are expected to outpace overall inflation by 2025.