This Performance Update examines 2025 financial performance among CAP’s 19-company sample of the largest publicly traded Property & Casualty (P&C) and Life & Health (L&H) Insurance companies, with median revenue of approximately $18B. Our annual 2026 Insurance Industry report, which summarizes executive compensation actions, trends, and performance alignment, will be published in Q2 2026.

Key Observations – 2025 Results

• Insurance industry top line continued to increase in 2025, but growth rates were generally lower than 2023 and 2024 levels. Median Revenue growth for all insurers in our sample was +5.0% in 2025, down from +8.7% in 2023 and +10.1% in 2024. Slowing top line growth in 2025 was consistent between both P&C and L&H insurers. P&C insurers reported median Revenue and Net Written Premium growth of +6.3%, each, compared to +12.3% and +9.0% in 2024. L&H insurers reported +1.5% Revenue growth at median, below +6.1% in the prior year.
• Net Investment Income increased +7.9% in 2025 at median. This is slower than median growth in 2023 and 2024 (+12.1% and +11.4%, respectively). P&C insurers continued to outperform L&H insurers with respect to investment income growth (+10.9% vs. +6.0%, respectively), though the gap narrowed from prior year (+21.5% vs. +6.9%, respectively).
• Catastrophe losses (CATs) from the January 2025 California wildfires were a notable headwind for P&C insurers in the first quarter. The early year wildfire impact, however, was offset by a less active hurricane season in the second half of the year, with strong underwriting results that helped absorb costs. Overall CATs for P&C insurers in our sample were actually down slightly in 2025, following two consecutive years of rising CATs. In our P&C sample, CATs were $16.4 billion in 2025, compared to $16.8 billion in 2024, and $15.7 billion in 2023. Six of ten P&C insurers reported lower pre-tax CATs in 2025.
• Operating profitability remained strong in 2025. Median Operating Income for the full sample increased +8.9%, similar to 2023 and 2024 growth levels of +9.9% and +8.1%, respectively. Operating ROE increased year-over-year by +0.8 percentage points at median, the third consecutive year of improvement. Once again, P&C insurers drove overall earnings expansion, with median Operating Income growth of +24.6% and Operating ROE improvement of +1.2 percentage points, which was driven by strong underwriting results and a notable rebound in personal auto lines profitability. L&H insurers reported more modest profitability growth, with Operating Income up +4.7% and Operating ROE improvement of +0.8 percentage points.
• For the fifth consecutive year, total shareholder return (TSR) was positive in 2025, increasing +17.4% at median for our full sample, though below levels observed in 2024 (+27.7% at median). Similar to last year, median TSR was similar between P&C insurers (+18.2% at median) and L&H insurers (+17.4%), and roughly double that of the median increase in the S&P 500 (+8.9%) for the second consecutive year.

For questions or more information, please contact the CAP Insurance Team:

Melissa Burek
Partner
[email protected]
212-921-9354

Roman Beleuta
Partner
[email protected]
646-532-5932

Kyle White
Senior Associate
[email protected]
646-568-1161

Gray Broaddus
Senior Analyst
[email protected]
646-532-5931

CAP’s Insurance Sample

P&C Companies

Allstate

American International Group

Chubb Limited

Cincinnati Financial

CNA Financial

Hanover Insurance Group

Hartford Insurance Group

Progressive

Travelers

W.R. Berkley

Life & Health Companies

Aflac

Genworth Financial

Globe Life

Lincoln National

Manulife Financial

MetLife

Principal Financial Group

Prudential Financial

Unum Group