Last year’s sub-100 combined ratio for the homeowners line broke a five-year string of 100-plus figures for the U.S. insurance industry in aggregate—and homeowners insurers are sticking to rate increases to keep profits going, a new report says.
According the report from AM Best, “Improved U.S. Homeowners Results Challenged by January Wildfires,” total U.S. homeowners direct premiums written increased by 10.7% in the first quarter of 2025 compared with the same period in 2024.
This comes after the segment posted double-digit direct premium increases in each of the last four years. While the 10.7% is lower than first-quarter 2022, 2023 and 2024 premium boosts, which each averaged around 13%, in 2025, first-quarter premium was almost $15 billion higher than it was just four years prior in 2021, the report states.
“The increase…