The U.S. property/casualty (P/C) industry recorded $31.2 billion in net underwriting income in the first half of 2026, nearly three times the $10.9 billion posted in the same prior-year period, according to a new AM Best report.

These preliminary results are detailed in a new Best’s Special Report, titled, “First Look: Six-Month 2026 US Property/Casualty Financial Results,” and the data is derived from companies’ six-month 2026 interim period statutory statements that were received as of Aug. 24, accounting for an estimated 97% of total industry net premiums written.

According to the report, the P/C industry’s combined ratio improved by four percentage points to 92.5. AM Best estimates that catastrophe losses accounted for 6.2 points on the six-month 2026 combined ratio, down from an estimated 10.8 points in the first half of 2025 when the industry was impacted heavily by the California wildfires. Also driving the net underwriting gain was a 3% increase in net earned premiums and a 5% decline in incurred losses and loss-adjustment expenses, which offset $6.2 billion in dividends to policyholders - predominantly due to $5 billion of dividends to policyholders at State Farm.

A 12% increase in net investment income earned, combined with the underwriting gain, nearly doubled pre-tax operating income to $79.1 billion. A significant increase in net realized capital gains also contributed to the industry’s net income, which increased 55% from the same prior-year period to $77.8 billion.

To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=368393.

AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.

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