{"id":1940,"date":"2026-05-12T13:00:40","date_gmt":"2026-05-12T13:00:40","guid":{"rendered":"http:\/\/ateliersfurrer.com\/?p=1940"},"modified":"2026-05-12T13:38:02","modified_gmt":"2026-05-12T13:38:02","slug":"roe-for-us-pc-insurers-reached-decade-high-level-in-2025-am-best","status":"publish","type":"post","link":"http:\/\/ateliersfurrer.com\/index.php\/2026\/05\/12\/roe-for-us-pc-insurers-reached-decade-high-level-in-2025-am-best\/","title":{"rendered":"ROE for US P&C insurers reached decade high level in 2025: AM Best"},"content":{"rendered":"

A new AM Best report has revealed that the return-on-equity for U.S. property & casualty (P&C) insurers reached a decade high level of 14.97% in 2025, while the cost of equity held relatively steady at 8.18%.<\/p>\n

\"am-best-logo\"Despite early-year challenges for P&C insurers, with the California wildfires causing extensive damage in January, a relatively benign hurricane season helped ease pressure on underwriting losses for the remainder of the year, AM Best explained.<\/p>\n

According to the rating agency, the median return on capital employed for P&C insurers continued its upward three-year trend, reaching a new high of 12.41% in 2025.<\/p>\n

Helen Andersen, industry analyst, AM Best, added, \u201cSignificant rate increases, especially in the homeowners and personal auto lines, have boosted the performance of P&C insurers, reversing a trend of underwriting losses into significant underwriting gains for the past two years.\u201d<\/p>\n

Elsewhere in the report, AM Best noted that health insurers have consistently exceeded their cost of capital by comfortable margins over the past 15 years.<\/p>\n

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\"Pelagos<\/a><\/div>\n<\/div>\n

\u201cThe median return on capital employed for this segment has steadily decreased since 2020 but still surpassed the median weighted average cost of capital by about 1.3%,\u201d the rating agency said.<\/p>\n

AM Best continued, \u201cHealth insurers\u2019 returns have been steadily declining since the pandemic, due to more significant claims, as well as rising medical and pharmaceutical costs\u2014especially specialty drugs, such as GLP-1s.\u201d<\/p>\n

Meanwhile, AM Best noted that in the life & annuity (L&A) segment, high interest rates throughout 2024 drove exceptional returns, but as rates began to decline in 2025, slowing new money yields weighed on returns.<\/p>\n

The rating agency concluded, \u201cThe relationship between interest rates and L\/A insurers\u2019 returns is evident when viewed alongside the yield of U.S. Treasury bonds. L\/A insurers\u2019 median return on capital employed level of 8.36% narrowly missed the weighted average cost of capital target of 8.43%.<\/p>\n

\u201cSimilarly, the median return on equity for life insurers fell to 11.71% in 2025, down from a record high of 15.96% in 2024.<\/p>\n

\u201cLike the P\/C and health segments, L\/A insurers exceeded the cost of equity despite its increase. However, the margin was much narrower, only 1.26% over the cost of equity, due to life insurers\u2019 increased susceptibility to changes in interest rates.\u201d<\/p>\n

The post ROE for US P&C insurers reached decade high level in 2025: AM Best<\/a> appeared first on ReinsuranceNe.ws<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

A new AM Best report has revealed that the return-on-equity for U.S. property & casualty (P&C) insurers reached a decade high level of 14.97% in 2025, while the cost of equity held relatively steady at 8.18%. Despite early-year challenges for…<\/p>\n","protected":false},"author":1,"featured_media":355,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[11],"tags":[],"_links":{"self":[{"href":"http:\/\/ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/posts\/1940"}],"collection":[{"href":"http:\/\/ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/comments?post=1940"}],"version-history":[{"count":3,"href":"http:\/\/ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/posts\/1940\/revisions"}],"predecessor-version":[{"id":1943,"href":"http:\/\/ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/posts\/1940\/revisions\/1943"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/media\/355"}],"wp:attachment":[{"href":"http:\/\/ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/media?parent=1940"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/categories?post=1940"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/ateliersfurrer.com\/index.php\/wp-json\/wp\/v2\/tags?post=1940"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}