U.S. P&C insurance underwriting gains reach $31.7 billion in H1 2026

The U.S. property and casualty (P&C) insurance industry reported an estimated net underwriting gain of $31.7 billion for the first half of 2026, a significant increase from the $11.6 billion recorded during the same period in 2025. This growth was supported by higher investment income and limited catastrophe losses compared to the previous year, which was impacted by wildfires in Los Angeles.

Despite the gains, market conditions show varied performance. Net written premium growth slowed to 2.1 percent due to competitive pressures and moderating rate increases. While policyholders’ surplus rose to $1.3 trillion, enhancing stability, catastrophe exposure remains a long-term risk. Property lines have softened, while casualty lines face ongoing pressure.

In the reinsurance sector, buyers anticipate further declines in property rates heading into 2027, driven by abundant capacity and fewer severe catastrophes. While U.S. insurers expect casualty price increases due to litigation and settlement costs, non-U.S. insurers anticipate price declines. There is also growing interest in alternative capital, specifically catastrophe bonds and collateralized reinsurance, to diversify capacity.