Direct written premiums within the U.S. owners insurance coverage market rose greater than 13 % in 2024, and the web mixed ratio for the road fell under breakeven for the primary time in 5 years.
Increased costs defined a lot of the industrywide loss and mixed ratio enhancements, however not all owners insurers grew premiums final 12 months, a brand new report from S&P International Market Intelligence reveals.
The brand new report, “Premiums rise, ratios recede for U.S. owners insurers in 2024,” exhibits that regardless of 5 tropical cyclones and quite a few extreme climate occasions, the industrywide web mixed ratio for owners (excluding policyholder dividends) was 99.3 in 2024, 11.2 factors higher than the 110.5 ratio recorded in 2023.
The 99.3 marked the primary time since 2019 that the ratio was under 100, the report mentioned.
(Editor’s Notice: Earlier this month, Provider Administration reported on a separate report from S&P GMI in an article titled “2024 P/C Insurance coverage Mixed Ratio: Finest in Extra Than a Decade,” which confirmed the owners web mixed ratio touchdown at 99.7 final 12 months. The 2024 mixed ratio within the prior report included policyholder dividends. The newest report on simply the owners line doesn’t.)
The report exhibits industrywide owners web mixed ratios (together with loss ratio and expense elements) for the final decade on an interactive chart, which additionally gives tallies of direct written premiums and year-over-year premium jumps for every year from 2015-2024. General, direct premiums written within the sector rose 13.4 % to just about $173.1 billion. The rise marked the second-highest since 2015, behind a 14.1 % leap recorded in 2023.
The nationwide common rise in owner-occupied home-owner charges in 2024 rose to 11 % from 9.7 % in 2023, in line with Market Intelligence’s RateWatch software, the report mentioned.
A rating of the highest 20 owners insurers based mostly on direct written premium quantity exhibits the three largest gamers—State Farm, Allstate and USAA—every rising by double digits and reporting improved mixed ratios. However regardless of what S&P GMI calculates to be a 16.4 % bounce in direct premiums to $31.5 billion for the 12 months, State Farm’s web mixed ratio remained above 100, ending up at 105.4.
A comparability of particular person provider direct incurred loss ratios displayed within the newest S&P GMI report about owners insurance coverage outcomes with these set forth for a similar 20 insurers in an identical report revealed in Might final 12 months reveals that State Farm and USAA had the smallest direct loss ratio enhancements among the many 18 that reported higher ends in 2024 (4.5 factors for State Farm and a pair of.2 factors for USAA).
Solely two Florida regional insurers—Residents Property Ins. Corp. and Common Insurance coverage Holdings Inc.—reported deteriorating loss ratios for 2024.
Specializing in web mixed ratio enhancements (after the impacts of reinsurance) as a substitute of direct loss ratio modifications, State Farm and USAA nonetheless rank close to the underside. (Chart produced by Provider Administration under shows the 20 insurers ranked by factors of mixed ratio enchancment from 2023 to 2024.)
Two different massive owners insurers—Farmers and Liberty Mutual—posted the smallest development charges among the many 18 that reported extra direct written premiums in 2024 than 2023. In distinction to State Farm and USAA, nevertheless, these two firms rank amongst these with probably the most improved mixed ratios, doubtless benefiting from initiatives to shrink their portfolios as they elevated charges.
Farmers, rising premiums by simply 6 %, noticed its web mixed ratio enhance by 28 factors to 85.4 in 2024. (That was the second finest mixed ratio outcome among the many prime 20 carriers. Chubb posted an 81.1 web mixed ratio.)
In the meantime, Auto-House owners, which recorded the most important 2024 direct premium development charge among the many 20 largest carriers at 34.4 %, additionally ended up with the worst mixed ratio, 117.1.
[pullquote] To create the accompanying chart, Provider Administration extracted direct premium development, direct loss ratio, web loss ratio and mixed ratio data from two studies about owners revealed by S&P GMI—the Might 15, 2025, report titled “Premiums rise, ratios recede for US owners insurers in 2024″ for the 2024 metrics, and a Might 21, 2024, report titled “US owners insurers’ web mixed ratio surges previous 110%” for the 2023 underwriting outcomes. It ought to be famous that data within the earlier report was compiled by S&P GMI on Might 14, 2024, and should have been up to date later within the 12 months.
Insurers shaded in inexperienced are those with the most important 2024 DPW development charges, whereas these in purple had the smallest 2024 DPW development charges.
Boldface sort was used to flag the 5 largest insurers by DPW quantity.
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Nationwide Mutual Insurance coverage Co., the one firm among the many prime 10 largest owners to document decrease premiums in 2024 than 2023—a drop of 8.6 % to only over $4 billion—nonetheless recorded 17.9 factors of mixed ratio enchancment. The improved ratio, nevertheless, remained above breakeven in 2024 at 105.8.
Residents Property Insurance coverage Corp. was the one different insurer among the many prime 20 to document a decline in direct premiums written final 12 months. The 15.3 % drop to $3.2 billion for Residents pushed Florida’s insurer of final resort out of the highest 10 to a Thirteenth-place rating based mostly on premium quantity. The S&P GMI report attributes this to the success of depopulation efforts. Nonetheless, Residents was one among solely two insurers listed within the S&P GMI report back to document worse direct underwriting ends in 2024 than 2023—with its direct incurred loss ratio greater than 30 factors greater than the one listed in an identical report revealed by S&P GMI in Might 2024 laying out 2023 outcomes.
Florida-based Common Insurance coverage Holdings additionally noticed its direct loss ratio deteriorate by greater than 20 factors, however its web mixed ratios confirmed enchancment, after the influence of reinsurance. (Internet mixed ratios for Residents weren’t obtainable within the S&P GMI studies.)
Florida, nevertheless, didn’t produce the worst loss ratio outcomes for insurers in 2024.
The newest report additionally features a U.S. map color-coded to point the states with the worst and finest industrywide direct loss ratios. Nebraska, which was impacted by tornadoes and hail in two separate storms final June, had the very best direct loss ratio—136.6 (together with loss adjustment bills).
