The companies that sell the majority of U.S. property insurance have hiked insurance premiums enough that they are likely to ease off increases in the coming years, says research published Thursday by credit agency AM Best.
The insurers collectively had a $26 billion profit in 2024 after losing $10.8 billion in 2023. The turnaround largely occurred because the insurers hiked premiums in recent years as extreme weather events, inflation and other factors increased insurer costs.
“Rates are much more adequate today compared to several years back,” AM Best wrote, predicting that “premium growth will moderate over the next few years.”
The gains in profitability were mostly due to the increase in premiums and only minimally to higher returns on insurer investments.
