Property and Casualty Insurance Sees Best Underwriting Year Since 2013

In 2024, the U.S. property and casualty (P&C) insurance industry recorded its strongest underwriting performance in more than a decade, with a net combined ratio of 96.5%, according to S&P Global Market Intelligence. This marks a notable turnaround from 2023’s 101.6% and is the industry’s best result since 2013. A robust recovery in personal lines, particularly homeowners insurance, was the main catalyst behind the overall improvement. Despite persistent natural catastrophe losses, insurers benefited from rate increases and reinsurance support.

Personal lines delivered a dramatic rebound, improving nearly 10 percentage points year-over-year to a combined ratio of 96.7%. Homeowners insurance returned to profitability for the first time since 2019, while auto and farmowners lines also showed gains. These improvements came even as insurers faced losses from convective storms and hurricanes, with reinsurers absorbing much of the catastrophe burden.

Commercial lines, while still profitable overall, experienced mixed results across different segments. Property lines, such as fire and commercial multi-peril non-liability, posted substantial underwriting gains. However, liability lines deteriorated sharply, with general liability, product liability, and commercial multi-peril liability all posting combined ratios well above 100%. Medical professional liability saw slight improvement, and commercial auto remained challenged but showed modest progress.

Workers’ compensation remained a consistent bright spot, maintaining its profitable trajectory with a combined ratio of 88.8%. Overall, 2024’s results suggest that the P&C sector is adapting effectively to recent challenges, although volatility in certain lines—particularly liability—remains a concern for adjusters and underwriters moving forward.