US Property Casualty Surplus Rises to $1.30 Trillion

Global Insurance Desk: The U.S. property and casualty insurance industry closed the first half of 2026 with policyholders’ surplus at roughly $1.30 trillion, according to figures released this week by Verisk and the American Property Casualty Insurance Association. That level stands notably higher than the $1.13 trillion recorded at the same point a year earlier.

Surplus, the industry’s capital cushion after liabilities are set aside, climbed as underwriting results strengthened and investment gains added further support. Net underwriting profit for the six months reached an estimated $31.7 billion, more than double the prior year’s figure, which had been weighed down by heavy losses from the Los Angeles wildfires. The combined ratio improved to 92.7 from 96.5, while after-tax net income rose 53 percent to $77.8 billion. Investment gains contributed $59.6 billion to the totals.

Premium growth slowed to a more measured pace, with net written premiums up just 2.1 percent. Analysts following the numbers noted that rate increases had moderated after earlier hardening cycles, leaving some property lines more competitive while certain casualty coverages continued to feel pressure from rising claim costs and large verdicts.

Still, the overall capital position expanded, giving carriers a larger buffer against future shocks.

Robert Gordon of the APCIA pointed out that results varied widely by state. In places that have pursued legal reforms, some policyholders have already seen rate relief. Catastrophe exposure remains a constant concern, and Verisk’s latest modeling puts average annual insured natural catastrophe losses worldwide near $171 billion, with the United States accounting for the bulk of that total.

The surplus figure offers a clear snapshot of an industry that has regained ground after a difficult stretch. Whether the capital strength can be maintained will depend on how losses develop in the second half of the year and on the broader economic and weather patterns still ahead.