The property and casualty insurance industry experienced substantial growth in home insurance premiums during 2024, with total direct premiums reaching $151.95 billion. This figure represents a 13.7% increase compared to the previous year, as reported by the National Association of Insurance Commissioners. The industry also saw improved profitability, with the direct loss to earned premium ratio decreasing to 61.59% from 70.66% in 2023.
Major players in the industry demonstrated varying degrees of improvement in their loss ratios. State Farm, for instance, saw its direct loss ratio drop from 77.08% to 72.59%, while Liberty Mutual achieved a more significant reduction, decreasing its ratio from 68.56% to 55.97%. These improvements in loss ratios indicate better financial performance for these insurers in the home insurance sector.
The overall positive trend in both premium growth and profitability suggests a strengthening position for home insurers in 2024. The data from the National Association of Insurance Commissioners provides valuable insights into the industry’s performance, highlighting the factors that contributed to this improvement.
