The U.S. property/casualty (P/C) industry recorded a $16.3 billion net underwriting gain in the first quarter of 2026 following a $1 billion loss in the same prior-year period, which had been driven largely by the California wildfires, according to a new AM Best report.

These preliminary results are detailed in a new Best’s Special Report, titled, “First Look: Three-Month 2026 US Property/Casualty Financial Results,” and the data is derived from companies’ annual statutory statements received as of June 1, 2026, representing an estimated 97% of the total P/C industry’s net premiums written. According to the report, catastrophe losses were down significantly and accounted for 4.2 points on the three-month 2026 combined ratio, down from an estimated 14.5 percentage points in first-quarter 2025. This led to a combined ratio of 92.0 in the first three months of 2026, a seven-percentage-point improvement over the same prior-year period.

A 10.3% increase in net investment income earned combined with the underwriting gain drove pre-tax operating income up by 97.0% to $39.5 billion. Net realized capital gains more than doubled in first-quarter 2026, which contributed to a 107.7% net income increase over the first quarter of 2025 to $41.8 billion.

To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=365603.

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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