The U.S. property insurance industry remained profitable in the first quarter of 2025 despite paying huge claims following the Los Angeles wildfires.
Property and casualty insurers, which cover possessions such as homes and cars as well as personal liability, made $20 billion from January through March largely through earnings on investments, according to a report by AM Best, the ratings agency.
The earnings enabled the property insurance industry to continue adding to its overall surplus, which AM Best said was $1.1 trillion on March 31. The financial picture improved despite insurers losing $1.1 billion in the first quarter of 2025 on their insurance operations.
The Los Angeles-area wildfires destroyed more than 16,000 homes and caused tens of billions of dollars of damage to insured properties.
